Spain eases cross-listing rules after Ferrovial's Netherlands move

Spain Eases Cross-Listing Rules to Boost Global Access for Spanish Companies

Spain Amends Securities Law to Facilitate International Share Registration

By Gemma Guasch

Oct 9 (Reuters) - Spain has amended its securities law to allow shares issued by Spanish companies to be registered simultaneously in Spain and countries outside the European Union, according to a decree published in the official state gazette on Thursday.

Background: Ferrovial's Move and Government Response

• The change comes three years after Spanish infrastructure group Ferrovial moved its headquarters to the Netherlands through a reverse merger with its Dutch subsidiary. It listed in the Netherlands to try to accelerate a US listing, but the Spanish government criticised the decision as "ungrateful" and contrary to national interests

Objectives of the Reform

Broader Access for Spanish Companies

• The reform aims to broaden Spanish-listed companies' access to international investors by making it easier for their shares to trade simultaneously in Spain and on exchanges outside the EU, while keeping the main registration infrastructure in Spain

Maintaining Central Securities Depository Role

• The move allows Spain to retain its central securities depository as the reference depository even where some securities are held at a central securities depository outside the EU for trading on another market

Technical Provisions of the Decree

Authorisation for Technical Accounts

Global Nature and Accounting Purposes

• "The Spanish central securities depository is authorised to maintain a technical account — of a global nature and for accounting purposes only — intended to reflect the balance of securities deposited outside the Union and to verify the correct integrity of the issue," the decree said

Impact on Ownership

• It added that the technical account would not affect ownership of the underlying securities

(Reporting by Gemma Guasch. Editing by Charlie Devereux and Mark Potter)