Iberclear completed a decade-long transformation of Spain’s securities settlement framework in 2025, while improving its efficiency relative to the wider European market.
Reform 3, the final phase of the modernisation process, was implemented in March. It simplified the domestic post-trade model, aligned matching processes more closely with Target2-Securities (T2S) – the pan-European securities settlement platform operated by the European Central Bank and the Eurosystem – and helped prepare market participants for Europe’s transition to T+1.
The reform removed the mandatory Post-Trading Interface, allowing registry management and settlement processing to be handled separately. This reduced structural complexity and operational risk while creating a more sustainable operating model. It also completed a programme that began with Spain’s first settlement reform in 2015 and migration to T2S in 2017.
Adoption of the remaining T2S matching field, commonly known as Party2, further aligned Spain with European standards. The field identifies the counterparty’s underlying client, supporting matching and interoperability across borders.
Before the pandemic, we were five percentage points below the T2S average. Now we are close to the most efficient rates
Jesús Sánchez
The transformation was delivered without material disruption to settlement. Indeed, efficiency continued to improve. Iberclear maintains settlement efficiency above 95% by instruction volume and close to 99% by value.
“The first achievement was the settlement efficiency rate,” says head of operations Jesús Sánchez. “Before the pandemic, we were five percentage points below the T2S average. Now we are close to the most efficient rates.”
That improvement reflects continuous monitoring, targeted engagement with systemic participants and regular reporting. Market Insight, Iberclear’s business intelligence and data analytics platform, gives clients dashboards through which they can examine their settlement performance by asset, security, counterparty, instruction type and time of day. Crucially, participants can compare their results with relevant segments of the wider Spanish market rather than viewing only their internal data.
“Participants know their own pain points, but what they do not have is the average of the community,” says Sánchez. “We can provide that benchmarking and much more granular information about the behaviour of the Iberclear community.”
Preparation for next transition
Iberclear also led preparations for Europe’s planned T+1 settlement cycle in 2025. It established and coordinated Spain’s industry working group, assessed the required system and operational changes, and published a playbook, implementation road map and impact analysis covering Spain and Switzerland.
Its contribution extended to European governance. Iberclear has two representatives on the EU T+1 industry committee, chairs its partial settlement taskforce, chairs the European Central Securities Depositories Association’s settlement working group and leads the Eurosystem’s Market Settlement Efficiency Workshop.
Technology investment, meanwhile, extended beyond the core settlement engine. A digital issuance process standardises data, automates onboarding and accelerates securities registration. Issuers receive a more structured process, while participants obtain information through improved digital channels. Documentation for issuer onboarding was also simplified, while responsibilities between issuers and their representatives were clarified.
Iberclear also continued developing infrastructure for tokenised securities under the European DLT Pilot Regime. The programme was 75% complete at the end of the review period, with technical development at approximately 85%.
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