Informe_Anual_Cecabank_2016_ENG

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Comprehensive
coverage of our
customers’ needs.
Treasury Management
Our Trading Room operates on all the main national and international mar-
kets, in fixed-incomes (public and private), currencies, equities and derivati-
ves, for its own and customers’ portfolios. Our philosophy of achieving econo-
mies of scale has led us to develop Cecabank’s treasury, risk, and collateral
management platform, used by the company itself as well as several other
banks in the Spanish financial system.
1. Trading Room
Experience and caution guaranteed
Our Trading Room operates on all the main national and international mar-
kets, in fixed-incomes (public and private), currencies, equities and derivatives,
for its own and customers’ portfolios. These activities are always carried out
according to our guidelines which guarantee a high degree of both liquidity
and solvency. In addition Cecabank is the Spanish Treasury Public Debt market
maker, participating actively in tender processes and providing liquidity in the
secondary market, not only in spot purchases and sales, but also in financing
in the repo market. The bank is a direct member of the main Central Counter-
party Clearing Houses (Meffrepo, LCH London, LCH Paris and Eurex).
Activity during the year
Over the year there has been a major optimisation of the company’s liquidity
position, analysing liabilities and renegotiating conditions with a number of
depositors to fit them to the current characteristics of the market. In turn,
customer diversification has continued, with increasing numbers of non-tra-
ditional customers in terms of both number and income. In turn, the broke-
rage business has grown, allowing greater stability and more frequent recu-
rrence in revenue and commissions.
The 2013-2016 Strategic Plan was completed successfully, sparking off the
preparation of the new Plan that will be brought into force from 2017 to
2020, with a focus on growth. A vision of the market, counterparties, and
other financial agents of Cecabank’s solvency has been consolidated, and this
is reflected in the stable credit ratings given by the agencies, which, after
the increases of the last few years, have placed Cecabank alongside leading
Spanish banks.
The development of electronic contracting has been consolidated to provide
a service to customers, and Cecabank’s own SICE platform is used as a price
provider at several other multi-contributors.
Derivatives operations
Starting from December 2016, the obligation to note interest rate swap ope-
rations in clearing houses was introduced. Cecabank participates in LCH via
one of its members, that being the clearing house chosen by the vast majo-
rity of market participants. This obligation is established for level 1 and level
2 companies. We continue to offer liquidity in the market for level 2 and level
3 counterparties, where the latter ones maintain open bilateral liquidation
contracts with us.
This year we will promote base activities, swaps against bonds, to take advan-
tage of the opportunities of relative value that are presented on the market.
MARKET
MAKER FOR
Spanish
Public Debt
One of the
main dealers
in FX, Repos, and a top
counterparty in derivatives
and securities lending
DIRECT MEMBER OF
THE MAIN CENTRAL
CLEARING HOUSES
BME Clearing
Eurex
LCH Londres
LCH Paris
Cecabank 2016 Annual Report Page 66
05 OUR BUSINESS MODEL
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