Public debt market

Participating entities

There are various entities in the public debt market:

• Government debt account holders:

  They are intermediaries and financial institutions that are authorised by the Ministry for Economic Affairs and Finance (at the proposal of the Banco de España) to have their own balances and carry out transactions on their own account.

  The Banco de España issues a report that it prepares regarding financial institutions. In the case of insurance companies, please consult the Directorate General for Insurance, and for securities companies, investment firms and capital market funds, please contact the National Securities Market Commission (CNMV).

• Managing entities with full authorisation:

  They are government debt account holders that have also been authorised by the Ministry for Economic Affairs and Finance to keep records of their clients' securities. They therefore keep their own balances and their clients' balances.

  Proprietary and third-party accounts are managed separately and transactions with third-party balances are always recorded with the proprietary account as the counterparty.

  Banks, savings banks, credit co-operatives and securities companies can be managing entities with full authorisation.

• Restricted managing entities:

  These are entities that have only been authorised by the Ministry for Economic Affairs and Finance to record balances on behalf of clients. Therefore, they cannot be government debt account holders or have their own balances.

  Their operating capacity is limited to either searching for a counterparty in the market in exchange for a commission or recording changes in ownership in their clients' accounts resulting from transactions agreed between them.

• Market makers:

  They are entities whose purpose is to promote market liquidity and to help the Treasury disseminate government debt in the national market and abroad.

  They are the only entities authorised to participate in the second rounds of government debt auctions subject to certain conditions.

  Market makers for treasury bills have existed since 2003 in addition to market makers for bonds and debentures.