Operating in ...

Equities

National and International Equities

Operate in Equity markets around the world with the best conditions through various channels that we offer you: Markets Platform, mobile applications, Visual Chart, Visual Trader, FIS Global or through our Trading Desk.

GVC Gaesco is member of the Barcelona, Madrid, Valencia, Paris, Amsterdam, Brussels, Lisbon and Frankfurt stock markets. This allows us to offer excellent conditions for your trading. In addition, we give you access to other markets through agreements with international brokers. Ask our professionals about the advantages of trading in the financial markets.

 

Product classification according to order ECC / 2316/2015:

ETFs UCITS

ETFs (Exchange Traded Funds) are Exchange traded funds that combine the best features of conventional mutual funds and stocks. Overall, ETFs are a portfolio of securities (stocks, bonds, commodities, etc.), which aims to track the performance of a particular index.

Traded on a stock exchange like stocks, one of the main advantages is the ability to operate on them throughout the trading session, without having to wait for the market close to determine the net asset value of the replicated fund.

There are different types of ETFs: those that replicate the performance of an investment fund, a sector, an asset class, etc.

Therefore, its main attributes are:

  • Accessibility: bought and sold in the same way as shares.
  • Agility: You can invest in them at any time during the trading session.
  • Transparency: When replicating a fund we can know its exact investment policy, strength and consistency, as well as details of its portfolio. It is a product widely used today by institutional investors.
  • Liquidity: traded on organized markets and with liquidity, they offer issuers compensation for buying and selling prices. In the example, we can see the market depth of an ETF for a given issuer, and therefore, the liquidity available at any given time of the session:

 

Product classification according to order ECC / 2316/2015:

MAB

MAB is a specific stock exchange for Small Cap companies looking to expand their market. It has a custom control designed specifically for them, and costs and processes adapted to their characteristics.

The ability to design customized solutions is what characterizes this alternative market. This means adapting the system to particular companies by size and stage of development, which have large financing needs, want to value their business and wish to improve its competitiveness with all the tools a market provides.

MAB provides alternative financing to grow and expand.

This flexibility means adapting existing procedures for all these companies to be listed but without loosing transparency. To do this, it has been introduced a new notion: the “Registered Advisor”, whose mission is helping companies to comply with the reporting requirements.

Additionally, companies will have a "Liquidity Provider", i.e., a broker to help them to provide liquidity as efficiently as possible. However, it is also necessary to note that, due to their size, the companies listed on the MAB will have special characteristics in terms of liquidity and risk.

MAB is a SMN - Multilateral Trading System:

  • Promoted by BME and supervised by the National Stock market Commssion.
  • For European Union and Latin America Equities.
  • For institutional and individual investors.
  • It provides funding, visibility, liquidity and valuation.
  • With a special trading and information system.
  • MAB could be considered as a learning platform for Small Companies to reach the appropriate dimension to be listed in other bigger Stock Exchanges.

 

Product classification according to order ECC / 2316/2015:

Futures and Options

Futures

Futures and options are financial derivatives. Therefore, their price varies as do the underlying asset. For the future on the IBEX 35, the futures price will change in the same proportion as the IBEX 35 index, which includes the 35 companies with the highest market capitalization of the Spanish Continuous Market.

The trading of futures requires a proportionally smaller investment than the value of the negotiated contract. The amount to be withheld from the account is called Margin Requirement. The relationship between the value of the contract and the investment is called leverage.

The trading of futures is typically used for two very different purposes:

  • Speculative. The investment seeks to exploit price differences for capital appreciation.
  • Coverage. The investor has a portfolio of stocks closely related to the IBEX 35 evolution, for example. He may decide to open a short position[1] in the future to cover possible declines in his portfolio value; unrealized losses would be offset by capital gains through the sale of futures on the same index. It is important to note the amount to cover for the open position in the future in order to replicate that amount.

Future on IBEX 35: Here are the main specifications of the contract:

  • Name: Future on IBEX 35.
  • Market: MEFF (official market for financial futures and options in Spain).
  • Underlying: IBEX 35 index.
  • Multiplier: Each point on the IBEX 35 has a value of 10 euro.
  • Nominal Contract: It is obtained by multiplying the price of IBEX 35 futures by the multiplier. In this case, €10. Therefore, if the future of the IBEX 35 is trading at 10,000 points, the nominal value of the contract is equal to 10,000 points x €10 = €100,000.
  • Maturities: March-June-September-December.
  • Due date: The third Friday of the expiring month.
  • Last trading day: The maturity date.
  • Daily Settlement Price: The weighted average volume of transactions executed on the order book between 17:29h and 17:30h to one decimal (The daily settlement includes a charge or a credit in the customer's account with the gains or losses generated in the trading session).
  • Auction Schedule: From 08:30h to 09:00h. During the auction is possible to introduce, modify and cancel orders, but these will not be executed until the market opens.
  • Market Hours: From 09:00h to 20:00h.

Remember that leveraged transactions involve significant risk of loss and may exceed the amount of the funds required in guarantees.

Leverage can amplify your profits but also your losses.

Due to the sophistication and high risk, this product is only suitable for experienced investors because it requires market knowledge and financial capacity to meet potential losses.

 

[1] The short position is the position of an investor who sold an asset or has entered into a commitment to sell.

 

Product classification according to order ECC / 2316/2015:

Options

Options are derivative instruments through which the buyer gets the right but not the obligation to buy or sell underlying securities, which can be stocks, bonds, indexes, commodities, currencies, etc. at a specified price, known as the exercise price or strike, until a date determined by their maturity.

There are two types of options:

  • Call options, or Call.
  • Selling options, known as Put.

And two implementation models:

  • European options: those that can only be exercised at the option expiry date.
  • American options: those that can be exercised at any time between the date of purchase and the expiry date. The latter are those most used for the runtime flexibility offered to the investor.

Like futures, options have an underlying asset that are referenced and their price will vary, among other factors, depending on changes in the price of the underlying asset. Other important aspects that affect the price of the options are the time remaining until expiry, volatility of the underlying asset, the exercise price and the type of risk-free interest.

Remember that leveraged transactions involve a significant risk of loss and may exceed the amount of funds required in guarantees.

Leverage can amplify your profits but also your losses.

On sophistication and high risk, this product is only suitable for experienced investors because it requires market knowledge and financial capacity to meet potential losses.

Example. The IBEX 35 option contract. Here are the main specifications of the contract:

  • Name: IBEX 35 options.
  • Market: MEFF (official market for financial futures and options Spain).
  • Underlying: IBEX 35 Mini Futures on the same maturity.
  • Style Option: European (can only be exercised at maturity).
  • Multiplier: Each point on the IBEX 35 has a value of 10 euro.
  • The nominal contract is obtained by multiplying the price of the underlying. For the Future Mini IBEX 35, through the multiplier, in this case €1.
  • Types of option: buying (Call) and selling (Put).
  • Maturities: They will be open for trading, clearing and settlement:
    • The next ten maturities in a quarterly cycle March-June-September-December.
    • The two nearest monthly maturities that do not coincide with the first quarterly expiry cycle.
    • The maturities of the June-December cycle not previously included, to complete maturity with a maximum life of five years.
  • Due date: The third Friday of the expiry month.
  • Exercise date: The maturity date.
  • Last trading day: The maturity date.
  • Auction Schedule: From 08:30h to 09:00h. During the auction is possible to introduce, modify and cancel orders, but these will not be executed until the market opens.
  • Market Hours: From 09:00h to 17:35h.

 

Product classification according to order ECC / 2316/2015:

Warrants

Included within the category of Options, Warrants have a similar function. There are two types:

  • Call Warrants: Instruments that entitle the holder to purchase an asset at a future date also defined.
  • Put Warrants: The Warrant holder acquires the option to sell a given instrument at a specified price and date also defined.

The main differences between Warrants and Options are, on the one hand, the maturity - more than one year for Warrants - and liquidity. Issuers are responsible for feeding the price range required to trade on them.

There are many underlying for Warrants: from indexes to Equities, Forex, Commodities, etc.

GVC Gaesco offers a wide range of issuers to choose the one that best suits your needs:

  • Bankinter
  • BNP Paribas
  • Santander
  • Banesto
  • BBVA
  • La Caixa
  • Commerzbank
  • Sicieté Générale Acceptance
  • Societe Generale
  • UBS

Given the degree of leverage of these products, there is a real risk that the economic loss may exceed the amount of funds required in guarantees.

Due to the sophistication and high risk, this product is only suitable for experienced investors because it requires market knowledge and financial capacity to meet potential losses.

 

 

Product classification according to order ECC / 2316/2015:

Fixed Income

Electronic Fixed Income

GVC Gaesco, as AIAF custodian and clearing Member, provides access to Electronic Fixed Income Markets where assets such as Spanish Public Debt are traded. Check all issues traded on AIAF (Intermediary Financial Assets Association) and SEND (Electronic Debt Trading System).

 

 

Product classification according to order ECC / 2316/2015:

Institutional Fixed Income

Through all its counterparts, GVC Gaesco provides access to Corporate Issues, International Public Debt and all kinds of OTC debt issues in any currency.

 

Product classification according to order ECC / 2316/2015:

MARF

The Alternative Bond Market (MARF) is configured as an initiative to channel financial resources to a large number of solvent companies that can be found in this market as a way to obtain financing through the issuance of Fixed Income securities.

MARF adopts the legal structure of Multilateral Trading Facility (MTF), which makes it unofficial, similar to those that exist in some European countries around us and within the BME own alternative market, like the Alternative Stock Market (MAB).

Therefore, the requirements for access to this market are more flexible than those in the regulated official markets. It allows greater flexibility in managing emissions. Companies listed in MARF may benefit from simple procedures and lower costs.

As specified in its rules, approved by the National Securities Market Commission (CNMV), MARF is run by AIAF Fixed Income Market, SAU.

MARF is basically orientated to institutional who wish to diversify their portfolios including Fixed Income Issues of medium-sized companies, usually unlisted but with good business models.

MARF includes the figure of Registered Advisers, whose function is to advise companies attending MARF in terms of regulatory requirements and other issuer aspects in the beginning. However, the advice will be extended throughout the life of the issue.

Given the importance of this market, it is and will be a source of funding and entrepreneurial strength. Regulators and supervisors are making the necessary legislative changes to facilitate the proper functioning.

 

Product classification according to order ECC / 2316/2015:

Commodities

GVC Gaesco Valores offers forex trading across different platforms and markets. As well as a telephone execution desk service from 8:00h to 22:00h exclusively for clients.

 

Contact us, we will offer you the best combination for your trading.

Money Market

Money Market is characterized, among other factors, by the short-term maturity of the assets traded, usually less than one year. However, there may be longer-term maturities. The listed assets have two main characteristics: high liquidity and low risk.

 

Product classification according to order ECC / 2316/2015:

National debt

Public debt is the tool used by countries, states, provinces and municipalities to attract funding from individuals and institutions, whether domestic or foreign, which acquire such specifications based on bonus issue of securities under the commitment to a future payment.

The price of the bonds is fixed at maturity: 100% of nominal value. However, you can trade on a secondary market where the price is determined by the evolution of interest rates.

GVC Gaesco allows you to trade with this asset class through the Bureau of Enforcement. The price of this asset class is also established through the SEND market.

 

Product classification according to order ECC / 2316/2015: