DEFINITION of 'Madrid Stock Exchange (MAD) .MA'

The Madrid Stock Exchange is the largest securities market in Spain, also known as the Bolsa de Madrid. In 1809, Jose I Bonaparte attempted to establish Spain's first stock exchange in Madrid, but it failed because Madrid was not a major business center at the time. It wasn't until 1831 when the law creating the Madrid Stock Exchange was enacted, with securities of banks, railways and iron and steel companies being the first traded.

BREAKING DOWN 'Madrid Stock Exchange (MAD) .MA'

The Exchange remained open during WWI but closed during the Spanish Civil War from 1936 through early 1940. The Spanish Stock Exchange was transformed in 1988 with Spain's incorporation into the European Monetary System. In 1993, the Madrid Stock Exchange switched to all-electronic trading for fixed-income securities. In 1999 Spain's securities markets began trading in euros. Its regulatory body is the Spanish Stock Exchange Commission.

Madrid Exchange Operations

The exchange notes that over the past two decades, it has established a "new trading environment is characterized by it being opened up to increased competition, a backdrop in which regulated markets work alongside newly created entities, of which the Multilateral Trading Facilities (MTF´s) stands out." The exchange defines MTFs as "those systems which, operated by an investment firm or a managing entity of an official secondary market, have as their only social goal the managing of the system, that gathers, according to its non-discretionary rules, the various buy and sell interests on financial instruments of various third parties."

The Spanish equity market operates based on the SIBE electronic trading platform to connect the four Spanish stock exchanges, which also include Barcelona Stock Exchange (Bolsa de Barcelona), the Bilbao Stock Exchange (Bolsa de Bilbao), and the Valencia Stock Exchange (Bolsa de Valencia). Warrants, certificates and Exchange Traded Funds (ETFs) are traded, as well as futures and options, including the IBEX35 Index (which includes the 35 most-liquid shares traded) and various European stock indexes.

The exchange handles fixed income transactions to provide financing for the private sector, public and local bodies in Spain. "This market lists and trades a wide range of assets and products that meet the needs of issuers and investors in corporate debt, giving issuers the fullest possibilities as regards terms and fundraising strategies, and asset management in the case of investors," according to the exchange. According to the World Federation of Exchanges (WFE), the exchange ranks 8th in the world regarding investment flows with 40 billion euros to listed companies in 2017.

RELATED TERMS
  1. Madrid SE CATS (MSE) .MC

    Madrid SE CATS (MSE) .MC was the Computer Assisted Trading System ...
  2. Barcelona Stock Exchange

    The Barcelona Stock Exchange is one of Spain's four major securities ...
  3. Regional Stock Exchange

    A regional stock exchange is a place outside of a country's primary ...
  4. Exchangeable Security

    An exchangeable security is a security that can be exchanged ...
  5. Graduated Security

    A graduated security is a type of equity security that has moved ...
  6. Bombay Stock Exchange (BSE)

    The Bombay Stock Exchange (BSE) is the first and largest securities ...
Related Articles
  1. Investing

    The Top 5 ETFs to Track the IBEX 35 for 2016 (EWP, HEWP)

    Discover what the available ETF choices are for investors seeking exposure to the Spanish stock market that corresponds to the benchmark IBEX 35 Index.
  2. Personal Finance

    Spain's Economics: 3 Troubling Similarities to Greece

    Discover why the Spanish economy continues to suffer from devastating unemployment figures, and why a serious approach to growth and debt problems is needed.
  3. Investing

    Stock Exchanges Around The World

    We tell you about five of the most popular stock exchanges from around the globe.
  4. Investing

    Who Owns The Stock Exchanges?

    As M&A heats up among the exchanges, here's how the market currently looks.
  5. Financial Advisor

    5 Economic Challenges Spain Faces in 2016

    Learn about five economic challenges Spain faces in 2016 and what they mean for Spain's economy in light of recent elections and changes in government.
  6. Tech

    5 Live Bitcoin Exchanges

    Learn about five of the largest bitcoin exchanges operating around the world in 2015, and discover the issues these exchanges are facing.
  7. Insights

    The NYSE and Nasdaq: How They Work

    Learn some of the important differences in the way these exchanges operate and the securities that trade on them.
  8. Managing Wealth

    Top Tips For Exchanging Money

    Take these tips to heart to avoid wasting money when you exchange currencies.
  9. Retirement

    Want to Retire In Spain? 3 Regions to Check Out

    Explore well beyond the Costa del Sol before deciding to make Spain your retirement home.
  10. Taxes

    How Does a Tax-Free Exchange Work?

    In regards to the sale of property, particularly in real estate, a 1031 exchange is increasingly being recognized for its tax benefits to investors of all levels.
RELATED FAQS
  1. What are all of the securities markets in the U.S.A?

    Learn about the major and somewhat lesser-known U.S. financial securities markets. Read Answer >>
  2. What are the rules behind the delisting of a stock?

    Find out the criteria for a company to remain listed on a stock exchange. Learn what actions would lead to a security being ... Read Answer >>
  3. What is the difference between the bond market and the stock market?

    The bond market is where investors go to trade debt securities, while the stock market is where investors trade equity securities ... Read Answer >>
  4. What is the history of futures?

    Explore the history of futures trading and the origin of the major commodity futures trading exchanges in England and the ... Read Answer >>
  5. Why are traders on the floor of the exchange?

    Learn how trading on the floor of the stock exchange has evolved over time with computers now managing the majority of buying, ... Read Answer >>
  6. Who facilitates buying and selling on the primary market?

    Learn more about the primary marketplace -- home of initial public offerings -- and the major players that make buying and ... Read Answer >>
Hot Definitions
  1. Gross Profit

    Gross profit is the profit a company makes after deducting the costs of making and selling its products, or the costs of ...
  2. Diversification

    Diversification is the strategy of investing in a variety of securities in order to lower the risk involved with putting ...
  3. Intrinsic Value

    Intrinsic value is the perceived or calculated value of a company, including tangible and intangible factors, and may differ ...
  4. Current Assets

    Current assets is a balance sheet item that represents the value of all assets that can reasonably expected to be converted ...
  5. Volatility

    Volatility measures how much the price of a security, derivative, or index fluctuates.
  6. Money Market

    The money market is a segment of the financial market in which financial instruments with high liquidity and very short maturities ...
Trading Center