Valencia Stock Exchange was established under the Securities Act of the Spanish government and is one of the most important places in Valencia where monetary transactions take place in huge amounts. The securities settlement system or the SACL looks after the transactions and intimates the members about the status of the transactions.
Valencia Stock Exchange was established under the Securities Act of 1933 and was recognized as the “Designated offshore securities market”. It is one of the biggest and most significant stock exchanges of the world dealing with a huge amount of monetary transaction.
Valencia Stock Exchange was officially opened in 1980 and is governed by the Sociedad Rectora de la Bosla de Valores de Valencia, a corporation that owes its existence to the laws of the Spanish Kingdom. By 31st December 2001, there were 593 companies both foreign and national which had registered their equities on the list of the Stock Exchange of Valencia. At present, there are 12 major financial houses and two security dealers which constitute the Stock Exchange in Valencia. The total amount of capital invested in the Valencia Stock Exchange (VSE) is around £ 469.9 billion.
The Securities Settlement System
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The security settlement system, which works under the name of SACL, deals with the equity securities. The settlement takes place when instructions are provided by the VSE members. The negotiations for buy and selling stocks begin and are carried on by the SACL. The SACL registers the transactions at the DVP level. The SACL initiates the settlement process by forwarding the news of the breakdowns to the companies and also designates the transactions in the name of the members so that they decline or accept the breakdowns. There are two methods of registering the securities at the VSE. They are:
- Registered Security
- Bearer Security
The participants open accounts at the SACL and the transactions are recorded in the form of credits and debits in the accounts of the participants. The SACL and the Technical Advisory Committee collaboratively look after the issue of minimizing the risks. A new program of the SACL can be launched only after the VSE permits. The audit takes place after the transactions are over at the VSE. The details about the transaction are published by the Official Stock Exchange of VSE after the transactions are over. The SACL suggests plans regarding the safety measures of the transactions based on the needs of the participants and the SACL itself. The VSE approves the procedures and the internal control measures.
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