The Law 24/1988, of July 28, of the Market of Securities, modified in part certain premises on which the Royal Decree 505/1987, of April 3, regulated the organization and the functioning of the market of Public Debt in annotations. Thus, the Law gave origin to the Agencies and Companies of Securities, Entities genuinely oriented to the operative in values between whose faculties it is contemplated to access the condition of the managing entity of the market of debt cited.

Royal Decree 1009/1991, of 21 June, amended, therefore, Royal Decree 505/1987 to accommodate it as provided for in the Law of the Stock Market. Among the changes introduced are those relating to the access to the ownership of accounts in the Central of Annotations, to the condition of the managing entity, to the specific regime of the Stock Exchanges in the negotiation, compensation or settlement of transactions on public debt represented in the accounts, and the revocation of the status of the managing entity or account holder, or the limitation of its operations.

On the other hand, the Royal Decree-Law 3/1991, of 3 May, has established a new organization of the Public Capital Credit Entities which modifies certain categories of Entities to which the Order of 19 May 1987 power to access the account holder condition in the Log Central.

It is therefore necessary to amend the Order of 19 May 1987 in order to accommodate it in respect of the legal and regulatory provisions in force, without prejudice to the fact that its necessary recasting of a single rule is in force in brief.

In its virtue, I have:

Article first.

Article 2 of the Order of the Ministry of Economy and Finance of 19 May 1987 is worded as follows:

" Art. 2. Access to the ownership of accounts in the Central.

1. In addition to the Banco de España, the entities and financial intermediaries that belong to one of the financial institutions, they may acquire and maintain a public debt represented in the accounts, in the accounts opened in their own name in the Central Bank. groups that relate to the following number.

2. To be the holder of accounts in the name of the Central of the Annotations, it will be necessary to have own resources of at least 200 million pesetas and belong to one of the following categories of Entities:

a) Institute of Official Credit.

(b) State-owned credit institutions.

c) Private Banks.

d) Confederate Savings Boxes.

e) Spanish Confederation of Savings Banks.

f) Credit cooperatives.

g) Money market media companies.

h) Values societies.

i) Financing entities.

j) Financial leasing companies.

k) Mortgage credit companies.

l) Mortgage market regulation funds.

m) Mutual guarantee societies.

n) Mixed second-aval societies.

o) Companies and Funds for investment and investment in money market assets.

p) Insurance entities.

q) Deposit Guarantee Funds in Credit Entities.

r) Insurance Compensation Consortium.

s) International financial organizations of which Spain is a member.

t) Central banks of countries belonging to the International Monetary Fund.

For the purposes of determining the entities referred to in paragraphs (b), (c), (d), (f), (g), (h), (i), (j), (k), (l), (m), (n), (o) and (p), it shall be subject to the corresponding records by the Bank of Spain of the Commission. National of the Securities Market, of the Directorate-General of the Treasury and Financial Policy and of the Directorate-General for Insurance.

3. The access to the ownership of accounts in the Central Bank must be obtained by means of the written document presented at the Banco de España, which will inform the National Securities Market Commission of the receipt of requests from the Entities referred to in points (h) and (o) and the Directorate-General for Insurance referred to in point (p) of the preceding number. It shall be signed by a person with sufficient power to bind the Entity, which shall be duly accredited. The Bank of Spain shall forward the applications submitted, together with its report, to the Directorate-General for the Treasury and Financial Policy, which shall, where appropriate, grant the status of account holder in the Central Bank, Banco de España. This will maintain a Public Registry of the present Entities.

4. Account holders in the Annotations Central will be subject to all rules and conditions established by the Bank of Spain regarding the use of the Money Market Telephone Service. "

Article 2.

Article 3 of the Order of the Ministry of Economic Affairs and Finance of 19 May 1987 is amended, as follows:

" Art. 3. Operations of account holders in the Log Central.

1. Entities which, in accordance with the provisions of numbers 1, 2 and 3 of the previous article have agreed to the ownership of the account in the Central of the Annotations, may carry out transactions on Public Debt represented in annotations in their account own portfolio through such Central, provided that such operations are admitted in accordance with the provisions of Article 5 (4) of Royal Decree 505/1987 of 3 April, and in Article 16 (2) of this Order.

2. The Public Debt transactions referred to in the previous number 1 shall be ordered, made and settled through the Bank of Spain's Money Market Telephone Service. "

Third item.

Article 5 of the Order of the Ministry of Economy and Finance of 19 May 1987 is worded as follows:

" Art. 5. º Access to the status of the managing entity.

1. The managing entities shall bear the accounts of those who are not authorized to operate through the Annotation Central, and shall maintain in this a comprehensive account that shall at all times constitute the exact counterpart of those accounts. The managing entities, with the exception of the securities agencies, may hold the additional condition of account holders in their own name in the Central Log. Such additional condition shall be mandatory for the managing entities to be able to act with their principals by offering counter-items on their own behalf.

It will be called '' full capacity management entities '' those entities authorized to carry out all kinds of operations with their clients and who have the additional status of account holder in their own name in the Central Bank. of the Annotations, in accordance with the provisions set out in number 4; and '' Management entities with restricted capacity '', those authorized to carry out with their principal only the operations referred to in Article 10 (11).

2. The status of the managing entity may be granted by the Minister of Economy and Finance, on a proposal from the Banco de España and after a report by the National Securities Market Commission, to those Entities that belong to one of the following categories:

a) Securities and Value Agencies.

b) Banks, Savings Banks, including the Spanish Confederation of Savings Banks, the Official Credit Institution and the State Public Equity Credit Entities.

c) Credit cooperatives.

d) Mediating Money Market Societies.

3. Access to the status of the managing entity and its maintenance shall require the concurrency of the following requirements in the Entities:

(a) With a minimum capital or social endowment of 150 million pesetas, and subsequently at a minimum level of own resources proportionate to the volume of activity and the risks assumed, agreement with its specific rules.

b) Recognized commercial or professional honorability in all members of its Board of Directors, which shall have at least three members, as well as its Directors-General and assimilated.

(c) That none of the members of its Board of Directors, as well as any of its Directors-General or Assimilated, has been declared bankrupt or a creditor contest without having been rehabilitated, is being processed or has a criminal record for crimes of falsehood against the Public Finance, infidelity in the custody of documents, violation of secrets, embezzlement of public funds, discovery and disclosure of secrets against property or is disabled, criminal or administratively, to exercise public or administration or management of Financial Entities.

d) That the majority of the members of its Board of Directors have adequate knowledge and experience in matters related to the Securities Market.

e) That they undertake to have an organization and a personal and material means technically appropriate to the character and volume of the activity that they intend to carry out and effectively fulfill this commitment. The applicant entity shall provide sufficient evidence that it is in a position to fulfil such a commitment from the first moment. In order to ensure a good level of functioning and supervision of the system, the Banco de España may define the organisational requirements with which the managing entities are to be counted, and the personal and minimum material to be provided by the Bank of Spain. have at their disposal, according to their full or restricted capacity, requirements and means to which the accreditation referred to must relate.

In order to assess the concurrency of the requirements referred to in points (b) and (d) above, the provisions of Article 2 (g) and (i) of Royal Decree 276 /1989 of 22 March on Societies and Agencies values.

4. The managing entities, with the sole exception of the securities agencies, may also be holders of account in their own name in the Central of Annotations, mediating the corresponding authorization of the Minister of Economy and Finance, on a proposal from the Bank of Spain and previous report of the National Securities Market Commission. The minimum amount of capital paid out to be available shall be 750 million pesetas.

Securities Agencies may only acquire or maintain for own account Public Debt Annotated through another managing entity, with full or restricted capacity.

5. The entities that intend to obtain the status of the managing entity shall submit the corresponding application in the Banco de España, specifying whether they wish to operate with their clients in full capacity or restricted capacity. In the case of fully capable Entities, in the same Expedient they will have to request the ownership of accounts in their own name. Obtained in the file the precept report of the National Commission of the Market of Values, will be raised by the Bank of Spain the timely proposal of resolution to the Minister of Economy and Finance, through the Directorate General of the Treasury and Financial Policy. The granting of the status of the managing entity shall be communicated by this Management Center to the Central of the Annotations.

6. The condition of the managing authority may be refused, in particular, to the applicant entities which, belonging to one of the categories referred to in points (b) and (d) of the preceding number 2, are part of the same group as another such group. Entities that have previously obtained such a condition, provided that it is advisable not to increase the number of managing entities to ensure an adequate level of system operation and supervision.

7. The granting of the status of managing entity will be published in the "Official State Gazette". The Banco de España will maintain a register of managing entities. "

Article 4:

1. The following point is added to Article 10 (2) (c) of the Order of the Ministry of Economic Affairs and Finance of 19 May 1987:

" The managing entities that decide to provide the account holders with the registration service of the debt transactions entered into by the latter with third parties, shall inform the Central of the Annotations together. with the fee to be applied for the provision of that service; in that communication, the managing entity shall in any event commit to respect the relationship between the account holder and third persons.

The transfer of the securities that are the subject of the transaction from the account holder to the managing entity and the recording of that transaction by the managing entity shall be carried out in accordance with the rules of the Central Log.

The safeguard that, in compliance with Article 8. º, issues the management entity, will reflect the situation described above by the expression '' in order of ... '' referring to the account holder, who will be obliged to facilitate The Entity manages all the data necessary for it to maintain its third-party registration, in accordance with Article 7. "

2. A number 11 is added to Article 10 of the Order of the Ministry of Economy and Finance of 19 May 1987, with the following wording:

" 11. The references contained in the previous numbers of this article will only apply in all its extension to the managing entities with full capacity. In their relations with their principals, the managing entities with restricted capacity may perform or manage all the operations described in the number 1 of this article, acting as mere commissions on behalf of third parties, seeking (a) a market counterparty, or making the relevant notes on the joint order of the contracting parties, and may, when they have the additional status of account holders in their own name in the Annotation Central, provide counterparty on its own behalf only in spot-simple trading operations. '

Article 5:

Article 13 of the Order of the Ministry of Economy and Finance of 19 May 1987 will be worded as follows:

" Art. 13. Specific regime of Stock Exchanges.

1. The Stock Exchanges, in accordance with the provisions of Article 7 of Royal Decree 505/1987, shall organise a specific regime for the negotiation, clearing and settlement of transactions in the accounts of public debt, which shall be subject to the approval of the Ministry of Economy and Finance. To this end, the corresponding project, accompanied by a Memory, will be presented to the Bank of Spain. The Bank of Spain will forward the project and the report with its report to the Directorate General of the Treasury and Financial Policy, which will raise it to the approval.

2. The specific scheme referred to in the preceding number shall include a system identifying the operations carried out within the system and corresponding to the records of the attached Entities, who shall continue to be followed by their clients. corresponding guards.

3. Securities and Exchange Agencies and Companies that hold the additional status of the managing entity shall be members of the securities system. The Management Entities may be attached to any of its modalities and account holders who meet the material and formal requirements of the approval of the approved regime. These entities and holders will participate in the clearing and settlement processes, introducing the appropriate accounting controls of the operations under this specific regime to the effect.

4. The attached managing entities may negotiate their third-party balances through the members of the stock exchange system referred to in the preceding number. The result of such a negotiation shall result in the processes of high and low in the stock of the stock system, and the corresponding transfers of or towards the stock, depending on the entity in whose account the third party is to remain the These balances are or are not members of the aforementioned system.

5. The coordinating entity of the stock-exchange system shall communicate the result of the negotiations carried out on the Central of the Annotations daily to the Central of the Annotations, as well as the balances of third parties, broken down by emissions, of the entities ' members. system. "

Article 6:

Article 21 of the Order of the Ministry of Economy and Finance of 19 May 1987 is worded as follows:

" Art. 21. Withdrawal, suspension, and limitation of the account holder condition in the Log Central or the managing entity.

1. The revocation and suspension of the status of the managing entity or holder of accounts in the Central of the Annotations, as well as the limitations of the type or volume of the operations of the present Entities and holders, shall be adjusted to the provisions of Article 12 (10) of Royal Decree 505/1987, as referred to in Article 23 (1) and (d) of that Article, as provided for in Article 23 of this Ministerial Order.

2. The revocation of the status of account holder in the Central Bank shall mean that the financial intermediary or entity concerned may not, on the basis of the adoption of such a measure, carry out other operations than those resulting from a reduction. final of their balances at the Central Bank. The suspension of the status of the account holder in the Central Bank shall have the same effect, but only for the period specified in the relevant decision.

3. The revocation of the status of the management entity shall mean that the Entity cannot, from the adoption of such measure, carry out or manage with or for its principal other operations than those of which it derives a definitive reduction of its balances of third parties. Without prejudice to this, as long as the Entity retains any third-party balances on the Central Bank, it shall continue to comply strictly with the obligations laid down in this Order. The suspension of the status of the managing entity shall have the same effect, but only during the period determined in the resolution in which such a measure is taken.

4. The resolution imposing limitations on the type or volume of the operations which may be made by the holders of accounts in the Log Central or the Management Entities shall determine in particular the operations concerned and the maximum volumes. authorised, which may relate both to individual operations and to all operations, as well as the duration of such limitations.

5. The revocation of the status of account holder in the Central, when the Entity concerned is a managing entity, shall also entail the loss of this condition, with the effects specified in number 3.

6. The revocation of the status of the holder of the accounts in the Central of the Annotations or the Management Entity may be agreed only in the cases referred to in Article 12.10 of Royal Decree 505/1987.

7. The decision on the withdrawal of the status of the holder of the accounts in the Central or the managing body shall order its publication, in order to determine the manner in which it is to take place. Such publication may or may not be ordered in cases of suspension or limitation of the type and volume of operations. "

Item Seventh:

A new Article 23 is added to the Order of the Ministry of Economy and Finance of 19 May 1987, with the following text:

" Art. 23. Minimum balances to be maintained by the managing entities.

The minimum public debt balances for third parties referred to in Article 21 (1) shall be:

1. In the case of a fully capable managing body, the minimum balance referred to in Article 12 (10) of Royal Decree 505/1987 of 3 April and Article 21 (1) shall be EUR 20 000 million. Such a minimum balance shall be of 1 billion pesetas for Securities Agencies and other managing entities with restricted capacity.

2. The minimum balances referred to above shall be reached within one year from the first day of the month following that in which the access to the status of the managing entity takes place. In the case of Entities that already have this condition on the day of the publication of this Order, the period shall be six months, counted from the first day of the month following that in which such publication occurs.

3. The obligations arising from the two preceding numbers shall be deemed to be unfulfilled where, from the time when the corresponding minimum balance is to be reached, the average balance of the daily amounts of the Debt entered on behalf of third parties in the Central by the managing entity shall be at least three consecutive calendar months below the established minimum. The fact that during the processing of the case for revocation of the status of the managing entity is recovering the corresponding minimum average balance shall not prevent such revocation. '

Article 8:

Paragraph (a) of the second order of the Order of the Ministry of Economy and Finance of 19 May 1987 is read as follows:

"a) The granting and revocation of the status of the managing entity, as well as the limitations of the type or volume of operations as provided for in Articles 5 and 21 of this Order."

TRANSIENT PROVISIONS

First.

Applications to obtain the status of the managing entity over which no resolution has been previously placed on the publication of this Order shall be renewed in accordance with the provisions of the Order. To this end, the Banco de España will be directed to the applicants who are in their registers, giving them a transfer of the following provisions. They shall be deemed to waive the obtaining of the status of the managing entity the Entities that within thirty days from the receipt of the said shipment have not submitted a new application, specifying in the same if they request to access the condition of the managing entity with restricted capacity or full capacity.

Second.

As long as the transformation of the autonomous body Caja Postal de Ahorros en Sociedad Estatal is not operated in accordance with the provisions of Article 2 of Royal Decree-Law 3/1991 of 3 May, establishing a new organisation of the institutions, of the state public capital credit, the Savings Bank shall maintain its status as a managing entity with full capacity in the Central of the Annotations as provided for in point (f) of Article 2.2 and in the letter (b) of Article 5.3 of the Order of the Ministry of Economy and Finance of 19 May 1987, including from the referred to in paragraph (b) of Articles 2.2 and 5.2.

REPEAL PROVISION

The second order of the Order of the Ministry of Economy and Finance of 16 June 1988 is hereby repealed, concerning the fixing of the minimum balance to be achieved and maintained by the managing entities on behalf of third parties.

FINAL DISPOSITION

This Order shall enter into force on the day following that of its publication in the Official Gazette of the State.

Madrid, October 31, 1991.

CATALAN SOLCHAGA

Ilmo. Mr. Director-General of the Treasury and Financial Policy.