What is MEFF Clear?

The Meff clear is an entity that acts as the Central Counterparty Chamber for fixed income operations traded in the stock market, electronic systems or negotiated by other means between the clearing members or clients. But before continuing with the explanation of the Meff clear, it would be convenient to explain what the MEFF is.

The MEFF is the official Market for Financial Options and Futures in Spain. It is a market supervised, controlled and regulated by the CNMV (National Securities Market Commission) and the Ministry of Economy of Spain. In it, different financial derivatives are traded, such as government bonds, stock index IBEX-35 and actions. Then, once an operation is registered in Meff clear of the rights and obligations derived from said operation for the intervening parties, they will automatically be understood as new. And thus, the inclusion of the Meff clear will act as a counterpart, causing new rights and obligations to arise on the part of its members or clients.

This was created in parallel with the formation of the MEFF in 1989, and is part of the BME (Bolsa y Mercados Españoles). The latter is a society holdingIn other words, they depend on a principal that owns all or a significant part of their shares. The BME was created in 2002 and brings together all Spanish entities with activities in the securities trading, clearing and settlement sector. In short, it is the operator of all stock markets and Spanish financial systems. The BME is made up of: the four exchanges (Madrid, Barcelona, ​​Valencia and Bilbao), the LATIBEX and MAB segments, the AIAF market and the Senaf trading system (for fixed income), the MEFF derivatives market and its counterparty clearinghouse Meffclear, and the central securities depository iberclear.

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