Spain’s Market Regulator Proposes ‘Ibex 50’ to Reduce Bank Dominance

The head of Spain’s stock market regulator has suggested expanding the country’s main stock index from 35 to 50 companies. The goal is to reduce the heavy influence of banks and bring more diversity to the market. Carlos San Basilio, president of the National Securities Market Commission (CNMV), said a larger index would be good for the Spanish economy. He wants to include more large companies from different sectors. Currently, six banks make up about 40% of the Ibex 35. “We would like to have an ‘Ibex 50’ with companies that have high value and liquidity, and for it to be as diversified as possible,” San Basilio told reporters on Friday. He spoke at a summer course organized by the Association of Economic Information Journalists in Santander. San Basilio noted that new companies are listing on the Spanish stock exchange very slowly. Only one company has gone public so far this year, with another possible before or after the summer. The regulator also called for changes to the country’s takeover law. San Basilio said the current law, which is nearly 20 years old, “has fulfilled its role,” but needs clearer wording. He pointed to the recent hostile takeover bid by BBVA for Banco Sabadell as a reason to review the rules. He confirmed that the CNMV has already shared its concerns with the Treasury and will provide more details when the government starts the reform process.