Informe_Anual_Cecabank

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03 Our Business Model
Cecabank 2015 Annual Report
Treasury Management
Derivatives operations. Cecabank is investing in
reducing risk and the capital cost of these operations.
In this respect, agreements were reached with members
of the LCH clearing house for settlement and Cecabank
will be taking part in the new Spanish clearing house for
derivatives, created by Meff, which is expected to come
on stream in 2016. In the future, clients will be able
choose whether to settle transactions at the clearing
house if they are members of it, which will mean a
lower capital cost, or continue with bilateral guarantee
contracts which are starting to produce differences in
price and cost in comparison with the former method.
Spanish Treasury market maker for public debt. We
continue to play the important role of Spanish Treasury
market maker and we have added a price platform
through Bloomberg where counterparties can find
prices that can be executed in real time. In addition, we
still take part in Spanish Treasury auctions, including
syndicated issuances. Our exposure to other treasuries,
such as Germany, Italy and USA, allows us to offer our
services in these markets too.
Apart from State debt, we have also added the daily
price in real time of over 200 eligible private fixed income
bonds between regions, corporates and debentures.
This is quite an important step for several reasons:
the evolution of the business required it, it helps us to
extend our range of national and international clients,
who have access to our prices, and it projects us as an
institution which plays a role in the market.
Banknotes
Cecabank is the leader in the wholesale foreign banknote
market in Spain and serves nearly all the country’s
financial institutions. It has extensive experience in
logistics and securities transport, on both a national and
international scale. Thanks to our logistics structure, we
can offer customers a highly flexible, top quality service
which adapts to their every need.
Activity during the year
In 2015 Cecabank received over 2,100 foreign banknote
purchase and sales transactions per day and carried out
the whole process of transport, handling and security.
Our clients have total flexibility for requesting any type
of service and can even ask Cecabank to directly deliver
banknotes to their branch network or to take themaway,
with the corresponding cost saving and improvement in
the quality of service. Over 15,000 bank branches are
currently served directly by Cecabank in this way.
Main figures
December 2015
Leader in the wholesale foreign banknote
market in Spain
Purchase and sales of foreign banknotes
+ 2,100 transactions per day
Bank branches directly served
by Cecabank
+15,000