The Madrid Stock Exchange, also known as Bolsa de Madrid, is the largest and most international of Spain's four regional stock exchanges. The other three exchanges are located in Barcelona, Valencia, and Bilbao. Established in 1831, the Madrid Stock Exchange is one of the oldest stock exchanges in Europe. It is owned and operated by Bolsas y Mercados Españoles (BME), which is also the parent company of the other regional exchanges in Spain.
The primary function of the Madrid Stock Exchange is to facilitate the issuance, trading, and settlement of stocks, bonds, and other financial instruments. It provides a platform for Spanish companies to raise capital by issuing shares to the public and allows investors to buy and sell these shares in a regulated and transparent environment.
The main stock market index for the Madrid Stock Exchange is the IBEX 35 (Iberia Index). The IBEX 35 is a market capitalization-weighted index that represents the performance of the 35 most liquid and highly capitalized stocks listed on the exchange. The index includes major Spanish companies from various sectors, such as banking, telecommunications, energy, and construction. The IBEX 35 is often used as a barometer of the overall health of the Spanish economy and stock market.
In addition to the IBEX 35, the Madrid Stock Exchange also has other indices, such as the IBEX Medium Cap and the IBEX Small Cap, which track the performance of medium and small-sized companies, respectively.
The Madrid Stock Exchange uses an electronic trading system called SIBE (Sistema de Interconexión Bursátil Español), which connects all four regional exchanges in Spain, providing a unified and efficient platform for trading. The exchange also adheres to strict regulations and listing requirements to maintain market integrity and protect investors' interests.
Investors can access the Madrid Stock Exchange through various financial products, such as individual stocks, exchange-traded funds (ETFs), and other instruments that track the performance of the Spanish stock market.