SETTLEMENT AND ISO 15022 STANDARDS:

SPAIN MARKET PRACTICE

Issued on behalf of the Spanish Market Practice Group

F i n a l i z e d : A p r i l 2 0 0 1 L a s t U p d a t e d : J a n u a r y 2 0 0 8

Spanish Market Practice Templates for Settlement

Table of Content

Spanish Market Practice Templates for Settlement......................................................................... 1 Table of Content .............................................................................................................................. 1 1 Introduction ................................................................................................................. 2 2 The Needed Elements.................................................................................................. 2 3 Illustration of the common elements used :................................................................. 5 4 Country Specifics: Put-through. .................................................................................. 7 5 Securities lending and borrowing settlement: ............................................................. 8 6 SUC FIXED INCOME matching system.................................................................. 18 7 ADR settlement Instructions: .................................................................................... 21 8 Contingent upon linkages: ......................................................................................... 23 9 Extension to Settlement Confirmation and Free of Payment .................................... 26

Changes to previous version (dark blue) V5.0 June 2002 Addition Recommendation for put-trough instructions Page 7.

Addition of market practice requirements for more detailed scenarios not covered by version 5.0.

- Securities Lending / Borrowing settlement Instruction Page 8- ADR Settlement Page 21

V5.1 March 2003 Addition

- Linkages Page 23V5.2 April 2003 Correction ADR settlement. Change of code CONV into RELE for

release / cancellation into local. Error correction. Page 21

V5.3 August 2004 Cosmetic Deletion of SR 2003 references.

PSET BIC change in illustrations. n/a

V5.4 March 2005 Clarification Clarification of the use of parties following the introduction

of a new matching engine at the ES CSD. Page 2-3

V5.5 October 2005 Clarification Description of the new Securities lending/borrowing

process. Page 8-17

V5.6 April 2007 Addition Description of the Fixed Income matching system. Page 18

V5.7 January 2008 Modification Contingent upon linkages compliance to global MP Page 23

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1 Introduction

This document refers to equities and fixed income vanilla trades in a custody environment.

2 The Needed Elements

ES Business element name Data Content Format

Sender’s Message Reference 16x Settlement Date 8!n Trade Date 8!n Identification of Financial Instrument ISIN1!e12!c Quantity of Financial Instrument to be settled 4!c/15d with

4!c = UNIT for equities 4!c = FAMT for fixed income

Safekeeping account to be credited or debited 35x Delivering or Receiving agent BIC (1) Client of Delivering or Receiving agent BIC (1) Place of settlement BIC Settlement Amount (including currency) 3!a15d

2.1 Country specifics. (1) The new CSD system (S.U.C.) operational guidelines specifically require the transmission of 11 digits party identifiers from Spanish agents to the CSD in the instructing party(ies) and clients of the receiving/delivering agent fields. Based on this requirement and in order to avoid misinterpretations of the information received from the clients, the ES NMPG required 11 digit BIC codes in these fields. The ES NMPG however understands that the above requirement may impact instructing parties outside Spain. Therefore, the Spain NMPG has decided to publish the following market practice rules: - 11 digit BIC codes is always the preferred option. 8 digit BIC codes filled with "XXX" will be considered also as 11 digits BIC codes and routed to the CSD system. - In case 8 digit BIC codes are received with no end filling, your Spanish agent will, with no responsibility on its side and only in order not to stop any instruction, fill this code with "XXX" at the end and route the instruction.

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Illustration:

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3 Illustration of the common elements used :

Securities used: ES0123456789 • • Parties and safekeeping accounts relationships as follows :

FMXXCC22XXX

fictional Bank Identifier Code (BIC)

fund manager

ABCD fictional account with its global custodian

BRYYCC22ABC fictional Bank Identifier Code (BIC) broker

99857 fictional account with its local agent

GCXXDD22XXX fictional Bank Identifier Code (BIC) global custodian A1B2 fictional account with its

subcustodian/local agent

SCXXES22XXX fictional Bank Identifier Code (BIC) subcustodian/local agent of the global custodian (1) 21354 fictional account with the central

securities depository

SCYYES22XXX fictional Bank Identifier Code (BIC) local agent of the broker (2)

88888 fictional account with the central securities depository

Example of PSET IBRCESMM[SCL]

Trade Date is: 01 March 2005 •

• • •

Settlement Date is: 04 March 2005 Settlement amount is: EUR300000, Sender’s Reference is: 21324

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Detailed Field Name Data Field

Content Example

Start of block GENL :16R:GENL Sender's Reference 16x :20C::SEME//21324 Function of the message 4!c :23G:NEWM End of block GENL :16S:GENL

Start of block TRADDET :16R:TRADDET Settlement Date 8!n :98A::SETT//20050304 Trade Date 8!n :98A::TRAD//20050301 Identification of the Financial Instruments

ISIN1!e12!c

:35B:ISIN ES0123456789

End of block TRADDET :16S:TRADDET Start of block FIAC :16R:FIAC Quantity of Financial Instrument

4!c/15d :36B::SETT//xxxx/15000,

Safekeeping Account 35x :97A::SAFE//xxxxxxxxx End of block FIAC :16S:FIAC Start of block SETDET :16R:SETDET Settlement Transaction Type Indicator

1!a :22F::SETR//TRAD

IDENTIFICATION OF PARTIES WILL VARY ACCORDING TO THE SETTLEMENT

CHAIN OF ACCOUNTS Start of block AMT :16R:AMT Settlement amount 3!c15d :19A::SETT//EUR300000, End of block AMT :16S:AMT End of block SETDET :16S:SETDET

3.1 Settlement Chain should at least contain: Delivering or Receiving agent BIC Client of Delivering or Receiving agent BIC Place of Settlement BIC

3.2 Example: Start of block SETPRTY :16S:SETPRTY Party (Delivering agent) BIC :95P::DEAG//SCYYES22XXX

End of block SETPRTY :16S:SETPRTY Start of block SETPRTY :16R:SETPRTY Party (Seller) BIC :95P::SELL//BRYYCC22ABC End of block SETPRTY :16S:SETPRTY Start of block SETPRTY :16R:SETPRTY Party (place of settlement) BIC :95P::PSET//IBRCESMM[SCL] End of block SETPRTY :16S:SETPRTY

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4 Country Specifics: Put-through.

Put-through information becomes necessary when a direct (telephone) trade has been made between parties, skipping the legal requirement in Spain of going through an organized market in order to exchange beneficial ownership. When the 2 parties deliver the instructions to their correspondent local custodians to exchange the securities, they warn about the necessity of a put-through operation, to be actually done by either of the local sub custodians. Only in the very rare case that the necessity of the put-through is already known and acknowledged by the instructing account owner (message sender) at the time of sending of its instructions to the local sub-custodian, the following formatting was agreed by the Spain NMPG:

MT 542: 16R:GENL 20C::SEME//1049722 23G:NEWM 16S:GENL 16R:TRADDET 98A::SETT//20020419 98A::TRAD//20020416 35B:ISIN ES0177040013 ALTADIS SA

16S:TRADDET 16R:FIAC 36B::SETT//UNIT/2508, 97A::SAFE//111111 16S:FIAC 16R:SETDET 22F::SETR//TRAD 22F::BENE//YBEN Accepting put-through before delivery and accepting

the corresponding charges. 16R:SETPRTY 95P::REAG//SCXXES22XXX 16S:SETPRTY 16R:SETPRTY

95P::BUYR//BRYYCC22ABC Registration Name for the purchase side. OR

95Q::BUYR//Morgan Stanley and Co., N.Y. ABCD Account

Exact registration name for the purchase side in which the stock must be registered before delivering to SCXXES22

97A::SAFE//99857 Account number of the final receiver where the securities will be deposited once put-through has been made and delivery completed. OPTIONAL FIELD.

16S:SETPRTY 16R:SETPRTY 95P::PSET//IBRCESMM[SCL] 16S:SETPRTY 16S:SETDET

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5 Securities lending and borrowing settlement:

IMPACT: This procedure will have a major impact on Spanish custodians Testing period for Spanish Custodians: from 22.08.2005 to 14.10.2005 Implementation will finally take place on 21st. November 2005. This matching system is based in the same principles that the Unified Matching System (SUC) for transfers between participants under the same beneficiary, which is already in force since last March. Some different features interesting to the customers are: FORE WORD: It must be stated very clearly that the counterpart to be instructed refers to the actual registration of the loan, not the instructing party.

5.1 LOAN MATURITY DATE The information concerning the maturity date of a loan term will be optional. a) If a client includes this date on the ISO 15022 instruction, the information will be released to

the market. b) If no date is included then no information will be released when the loan is transmitted. It is important to note that if a maturity date is included in the transmission, it automatically becomes matching criteria and MUST coincide with the date instructed by the counterparty. The maturity date can be included in one of the following fields (please also see examples below): REPO SEQUENCE :98A::TERM//YYYYMMDD (preferred option) OR TRADDET SEQUENCE :70E::SPRO//TERM YYYYMMDD If it is decided not to populate this field, the consequences are going to be the following:

The counterpart’s instruction sent to Iberclear must also leave the field unpopulated, in order for the instructions to match within the matching system. Should the counterpart’s instruction reflect the maturity date, the instructions will not match and to sort out the mismatch the local custodian will follow the procedure bilaterally agreed with their customers.

5.2 COMMON/CROSS REFERENCE The common reference will be also an optional element. If a common reference is agreed between the two investors then this can be included in the ISO 15022 instruction. This information, if included, will automatically become matching criteria and must coincide with the reference indicated by the counterparty. This criterion, if included in the transmission, will basically be the first point of matching with the counterpart. If the common reference is matched, but further

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discrepancies are found, MT 548’s will be sent to the participants advising of the discrepant data. If no common reference is included in the transmission, discrepant information will have to be retrieved from the MT 578’s sent by Iberclear. To report about this information, the local custodian will follow the procedure bilaterally agreed with their customers. The common/cross reference can be included in the following sequence and field (please also see examples below): LINK SEQUENCE :20C::COMM//XXXXXXXXX (up to 16 digits) Having said the above, if a party chooses not to populate this field the following must be known:

The counterpart’s instruction sent to Iberclear must also leave the field unpopulated, in order for the instructions to match within the matching system. Should the counterpart’s instruction reflect the common reference, the instructions will not match and to report about this situation the local custodian will follow the procedure bilaterally agreed with their customers.

5.3 IBERCLEAR`S ORIGINAL STOCK LOAN IDENTIFICATION NUMBER The loan initiation identification number assigned by Iberclear upon the constitution of the loan will be mandatory matching criteria upon its return. That is to say, local participants will have to provide the Iberclear’s reference of the loan that they are ordered to return. It must be made clear that it will be the Spanish custodians who will send the mandatory Iberclear’s identification number1 to Iberclear on a stock loan return trade. However, in order for local participants to locate Iberclear’s ID number in its books, the clients should send the Trade Reference Number (TRN) of the original stock loan on the Stock Loan Return Instruction. As both Iberclear ID Number and the clients’ original TRN are linked together in local participants’ system, Iberclear’s ID Number will be released to the market. It is important to take into account that this is an obligatory matching criterion and if both parties do not release exactly the same details then the trade will not settle. It is therefore strongly recommended that this original stock lending TRN reference number be included in the return instruction. It is of extreme importance to note that if the original TRN reference is quoted by one of the parties involved, then both must include it; otherwise, the trade will not match in the market. The original TRN reference number must be included in the following sequence and field: LINK SEQUENCE :20C::PREV//XXXXXXXXX Linking loan return to loan initiation by means of :20C::SEME of the original. OR / PLUS Other reference fields (such as TRRF) but only…

1 Id number is composed of a 15-digit number containing the date of issuance that is assigned by Iberclear to each individual new stock loan upon its settlement. It is the Spanish Custodians and CSD who keep track of these Id. Numbers in their books.

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As far as identical reference was also provided in the loan initiation under the same qualifier. If there is a discrepancy between the two Iberclear ID Numbers sent to SUC Securities Lending matching system, the local custodian will receive the discrepancy from Iberclear if a cross reference has been matched and will report to its customer according to the procedure bilaterally agreed. If no common reference is included in the transmission, or it does not match, discrepant information will have to be retrieved from the MT 578’s sent by Iberclear. As a result of the above said, it is understood that each original instruction must be cancelled individually, not in a block.

5.4 CORPORATE ACTIONS FOREWORD: It must be stated very clearly that Iberclear will grant the economical rights to the owner of the securities at the time the event takes place. Any agreement on the contrary between lender and borrower must be solved outside the system Stock Merger, Conversions. Upon a stock merger, conversions or other corporate actions where an ISIN code is deleted and changed into another occurs, Iberclear will delete all open stock loans on their books and it will be the local participants who will send instructions to Iberclear to open the loans under the new ISIN code. Each local participant will only have a month’s time from the corporate action event to send a formatted ISO 15022 message, per open loan, to the SUC Securities Lending Matching system to be matched. Upon matching Iberclear will register the loan with the details on the matched instruction. Local custodians will proceed as stated in the procedures bilaterally agreed with its customers. The eliminated open loans will have to be returned outside the Securities Lending System by means of a stock transfer between clients, using the new ISIN, if needed. The above matching procedure is also applied in the cases where there is a client merger/take-over, where it is necessary to transfer all the open loans from one client’s account to another. Stock Split If a stock loan is subject to a split, Iberclear will automatically adjust the quantity of the open stock loan reflecting the split, while the Iberclear ID Number will remain the same. Spin-Off This event is unusual in Spain. However, may it take place in the future, the procedure will be similar to that of the right issues. Reverse Stock Split If a stock loan is subject to a reverse stock split, Iberclear deletes the open stock loans from its system. Procedure to follow after the deletion will be the same as in a stock merger. Rights Issues The SUC Securities Lending matching system will not cause an effect on the current procedure of stock loans subject to a rights issue. The stock originating from a rights issue should be delivered

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by the borrower as a normal stock transfer, where a put-through will be needed to have the stock registered under the lender’s name. Please see detailed ISO 15022 formatting examples below:

5.5 USAGE OF NEW LOAN - RETURN AND SECL-SECB QUALIFIERS.

NEW RETURN Lender MT 542/3 SECL MT 540/1 SECL Borrower MT 540/1 SECB MT 542/3 SECB

SAMPLE – MT 540 – NEW STOCK LOAN RECEIVE FREE OF PAYMENT :16R:GENL :20C::SEME//YOUR REF NUMBER :23G:NEWM :98A::PREP//YYYYMMDD :16R:GENL :16R:LINK :20C::COMM//COMMON REFERENCE AGREED UPON BY YOURSELVES AND YOUR COUNTERPART (OPTIONAL) :16R:LINK :16S:GENL :16R:TRADDET :98A::SETT// YYYYMMDD (MANDATORY) :98A::TRAD// YYYYMMDD (MANDATORY) :35B:ISIN ES0000000000 (MANDATORY) STOCK NAME :70E::SPRO//TERM YYYYMMDD (OPTIONAL) * :16S:TRADDET :16R:FIAC :36B::SETT//UNIT/NUMBER SHS, (MANDATORY) :97A::SAFE//A/C NUMBER (MANDATORY) :16S:FIAC :16R:REPO :98A:TERM//YYYYMMDD (OPTIONAL) * :16S:REPO :16R:SETDET :22F::SETR//SECB :16R:SETPRTY :95P::SELL//COUNTERPARTY’S REGISTRATION BIC CODE (11 DIGITS) (MANDATORY) OR :95R::SELL//IBRC//Iberclear COD. :16S:SETPRTY :16R:SETPRTY :95P::DEAG// SPANISH COUNTERPARTY’S BIC CODE (11 DIGITS) (MANDATORY) :16S:SETPRTY

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:16R:SETPRTY :95P::PSET//IBRCESMMSCL :16S:SETPRTY :16S:SETDET * ONLY ONE OF THESE OPTIONS SHOULD BE USED.

SAMPLE – MT 541 – NEW STOCK LOAN RECEIVE VS PAYMENT :16R:GENL :20C::SEME//YOUR REF NUMBER :23G:NEWM :98A::PREP//YYYYMMDD :16R:GENL :16R:LINK :20C::COMM//COMMON REFERENCE AGREED UPON BY YOURSELVES AND YOUR COUNTERPART (OPTIONAL) :16R:LINK :16S:GENL :16R:TRADDET :98A::SETT// YYYYMMDD (MANDATORY) :98A::TRAD// YYYYMMDD (MANDATORY) :35B:ISIN ES0000000000 (MANDATORY) STOCK NAME :70E::SPRO//TERM YYYYMMDD (OPTIONAL) * :16S:TRADDET :16R:FIAC :36B::SETT//UNIT/NUMBER SHS, (MANDATORY) :97A::SAFE//A/C NUMBER (MANDATORY) :16S:FIAC :16R:REPO :98A:TERM//YYYYMMDD (OPTIONAL) * :16S:REPO :16R:SETDET :22F::SETR//SECB :16R:SETPRTY :95P::SELL//COUNTERPARTY’S REGISTRATION BIC CODE (11 DIGITS) (MANDATORY) OR :95R::SELL//IBRC//Iberclear COD. :16S:SETPRTY :16R:SETPRTY :95P::DEAG// SPANISH COUNTERPARTY’S BIC CODE (11 DIGITS) (MANDATORY) :16S:SETPRTY :16R:SETPRTY :95P::PSET//IBRCESMMSCL :16S:SETPRTY :16R:AMT :19A::SETT//EUR CASH AMOUNT WITH TWO DECIMALS (MANDATORY) :16S:AMT :16S:SETDET * ONLY ONE OF THESE OPTIONS SHOULD BE USED.

SAMPLE – MT 542 –NEW STOCK LOAN DELIVER FREE OF PAYMENT :16R:GENL :20C::SEME//YOUR REF NUMBER

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:23G:NEWM :98A::PREP//YYYYMMDD :16R:GENL :16R:LINK :20C::COMM//COMMON REFERENCE AGREED UPON BY YOURSELVES AND YOUR COUNTERPART (OPTIONAL) :16R:LINK :16S:GENL :16R:TRADDET :98A::SETT// YYYYMMDD (MANDATORY) :98A::TRAD// YYYYMMDD (MANDATORY) :35B:ISIN ES0000000000 (MANDATORY) STOCK NAME :70E::SPRO//TERM YYYYMMDD (OPTIONAL) * :16S:TRADDET :16R:FIAC :36B::SETT//UNIT/NUMBER SHS, (MANDATORY) :97A::SAFE//A/C NUMBER (MANDATORY) :16S:FIAC :16R:REPO :98A:TERM//YYYYMMDD (OPTIONAL) * :16S:REPO :16R:SETDET :22F::SETR//SECL :16R:SETPRTY :95P::PSET//IBRCESMMSCL :16S:SETPRTY :16R:SETPRTY :95P::REAG// SPANISH COUNTERPARTY’S BIC CODE (11 DIGITS) (MANDATORY) :16S:SETPRTY :16R:SETPRTY :95P::BUYR//COUNTERPARTY’S REGISTRATION BIC CODE (11 DIGITS) (MANDATORY) OR :95R::BUYR//IBRC//Iberclear COD. :16S:SETPRTY :16S:SETDET * ONLY ONE OF THESE OPTIONS SHOULD BE USED.

SAMPLE – MT 543 – NEW STOCK LOAN DELIVER VS PAYMENT :16R:GENL :20C::SEME//YOUR REF NUMBER :23G:NEWM :98A::PREP//YYYYMMDD :16R:GENL :16R:LINK :20C::COMM//COMMON REFERENCE AGREED UPON BY YOURSELVES AND YOUR COUNTERPART (OPTIONAL) :16R:LINK :16S:GENL :16R:TRADDET :98A::SETT// YYYYMMDD (MANDATORY) :98A::TRAD// YYYYMMDD (MANDATORY) :35B:ISIN ES0000000000 (MANDATORY) STOCK NAME

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:70E::SPRO//TERM YYYYMMDD (OPTIONAL) * :16S:TRADDET :16R:FIAC :36B::SETT//UNIT/NUMBER SHS, (MANDATORY) :97A::SAFE//A/C NUMBER (MANDATORY) :16S:FIAC :16R:REPO :98A:TERM//YYYYMMDD (OPTIONAL) * :16S:REPO :16R:SETDET :22F::SETR//SECL :16R:SETPRTY :95P::PSET//IBRCESMMSCL :16S:SETPRTY :16R:SETPRTY :95P::REAG// SPANISH COUNTERPARTY’S BIC CODE (11 DIGITS) (MANDATORY) :16S:SETPRTY :16R:SETPRTY :95P::BUYR//COUNTERPARTY’S REGISTRATION BIC CODE (11 DIGITS) (MANDATORY) OR :95R::BUYR//IBRC//Iberclear COD. :16S:SETPRTY :16R:AMT :19A::SETT//EUR EUR CASH AMOUNT WITH TWO DECIMALS (MANDATORY) :16S:AMT :16S:SETDET * ONLY ONE OF THESE OPTIONS SHOULD BE USED.

SAMPLE – MT 540 –STOCK LOAN RETURN RECEIVE FREE PAYMENT :16R:GENL :20C::SEME//YOUR REF NUMBER :23G:NEWM :98A::PREP//YYYYMMDD :16R:LINK :20C::COMM//COMMON REFERENCE AGREED UPON BY YOURSELVES AND YOUR COUNTERPART (OPTIONAL) :16S:LINK :16R:LINK :20C::PREV//… IF REFERENCE IS MADE TO THE CLIENT’S ORIGINAL MESSAGE REFERENCE NUMBER (:20C::SEME//…) USED TO OPEN THE ORIGINAL LOAN OR / PLUS Other reference fields such as TRRF but only… As far as identical reference was also provided in the loan initiation under the same qualifier. :16S:LINK :16S:GENL :16R:TRADDET :98A::SETT// YYYYMMDD (MANDATORY) :98A::TRAD// YYYYMMDD (MANDATORY) :35B:ISIN ES0000000000 (MANDATORY) STOCK NAME :16S:TRADDET :16R:FIAC :36B::SETT//UNIT/NUMBER SHS, (MANDATORY)

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:97A::SAFE//A/C NUMBER (MANDATORY) :16S:FIAC :16R:SETDET :22F::SETR// SECL :16R:SETPRTY :95P::PSET// IBRCESMMSCL :16S:SETPRTY :16R:SETPRTY :95P::SELL// COUNTERPARTY’S REGISTRATION BIC CODE (11 DIGITS) OR :95R::SELL//IBRC//Iberclear COD. (MANDATORY) :16S:SETPRTY :16R:SETPRTY :95P::DEAG// SPANISH COUNTERPARTY’S BIC CODE (11 DIGITS) (MANDATORY) :16S:SETPRTY :16S:SETDET

SAMPLE – MT 541 – STOCK LOAN RETURN RECEIVE VS PAYMENT :16R:GENL :20C::SEME//YOUR REF NUMBER :23G:NEWM :98A::PREP//YYYYMMDD :16R:LINK :20C::COMM//COMMON REFERENCE AGREED UPON BY YOURSELVES AND YOUR COUNTERPART (OPTIONAL) :16S:LINK :16R:LINK :20C::PREV//… IF REFERENCE IS MADE TO THE CLIENT’S ORIGINAL MESSAGE REFERENCE NUMBER (:20C::SEME//…) USED TO OPEN THE ORIGINAL LOAN OR / PLUS Other reference fields such as TRRF but only… As far as identical reference was also provided in the loan initiation under the same qualifier. :16S:LINK :16S:GENL :16R:TRADDET :98A::SETT// YYYYMMDD (MANDATORY) :98A::TRAD// YYYYMMDD (MANDATORY) :35B:ISIN ES0000000000 (MANDATORY) STOCK NAME :16S:TRADDET :16R:FIAC :36B::SETT//UNIT/NUMBER SHS, (MANDATORY) :97A::SAFE//A/C NUMBER (MANDATORY) :16S:FIAC :16R:SETDET :22F::SETR// SECL :16R:SETPRTY :95P::PSET// IBRCESMMSCL :16S:SETPRTY :16R:SETPRTY :95P::SELL// COUNTERPARTY’S REGISTRATION BIC CODE (11 DIGITS) OR

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:95R::SELL//IBRC//Iberclear COD. (MANDATORY) :16S:SETPRTY :16R:SETPRTY :95P::DEAG// SPANISH COUNTERPARTY’S BIC CODE (11 DIGITS) (MANDATORY) :16S:SETPRTY :16R:AMT :19A::SETT//EUR CASH AMOUNT WITH TWO DECIMALS (MANDATORY) :16S:AMT :16S:SETDET

SAMPLE – MT 542 –STOCK LOAN RETURN DELIVERY FREE OF PAYMENT :16R:GENL :20C::SEME//YOUR REF NUMBER :23G:NEWM :98A::PREP//YYYYMMDD :16R:LINK :20C::COMM//COMMON REFERENCE AGREED UPON BY YOURSELVES AND YOUR COUNTERPART (OPTIONAL) :16S:LINK :16R:LINK :20C::PREV//… IF REFERENCE IS MADE TO THE CLIENT’S ORIGINAL MESSAGE REFERENCE NUMBER (:20C::SEME//…) USED TO OPEN THE ORIGINAL LOAN OR / PLUS Other reference fields such as TRRF but only… As far as identical reference was also provided in the loan initiation under the same qualifier. :16S:LINK :16S:GENL :16R:TRADDET :98A::SETT// YYYYMMDD (MANDATORY) :98A::TRAD// YYYYMMDD (MANDATORY) :35B:ISIN ES0000000000 (MANDATORY) STOCK NAME :16S:TRADDET :16R:FIAC :36B::SETT//UNIT/NUMBER SHS, (MANDATORY) :97A::SAFE//A/C NUMBER (MANDATORY) :16S:FIAC :16R:SETDET :22F::SETR//SECB :16R:SETPRTY :95P::PSET//IBRCESMMSCL :16S:SETPRTY :16R:SETPRTY :95P::BUYR//COUNTERPARTY’S REGISTRATION BIC CODE (11 DIGITS) (MANDATORY) OR :95R::BUYR//IBRC//Iberclear COD. :16S:SETPRTY :16R:SETPRTY :95P::REAG// SPANISH COUNTERPARTY’S BIC CODE (11 DIGITS) (MANDATORY) :16S:SETPRTY :16S:SETDET

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SAMPLE – MT 543 – STOCK LOAN RETURN DELIVERY VS PAYMENT :16R:GENL :20C::SEME//YOUR REF NUMBER :23G:NEWM :98A::PREP//YYYYMMDD :16R:LINK :20C::COMM//COMMON REFERENCE AGREED UPON BY YOURSELVES AND YOUR COUNTERPART (OPTIONAL) :16S:LINK :16R:LINK :20C::PREV//… IF REFERENCE IS MADE TO THE CLIENT’S ORIGINAL MESSAGE REFERENCE NUMBER (:20C::SEME//…) USED TO OPEN THE ORIGINAL LOAN OR / PLUS Other reference fields such as TRRF but only… As far as identical reference was also provided in the loan initiation under the same qualifier. :16S:LINK :16S:GENL :16R:TRADDET :98A::SETT// YYYYMMDD (MANDATORY) :98A::TRAD// YYYYMMDD (MANDATORY) :35B:ISIN ES0000000000 (MANDATORY) STOCK NAME :16S:TRADDET :16R:FIAC :36B::SETT//UNIT/NUMBER SHS, (MANDATORY) :97A::SAFE//A/C NUMBER (MANDATORY) :16S:FIAC :16R:SETDET :22F::SETR//SECB :16R:SETPRTY :95P::PSET//IBRCESMMSCL :16S:SETPRTY :16R:SETPRTY :95P::BUYR//COUNTERPARTY’S REGISTRATION BIC CODE (11 DIGITS) (MANDATORY) OR :95R::BUYR//IBRC//Iberclear COD. :16S:SETPRTY :16R:SETPRTY :95P::REAG// SPANISH COUNTERPARTY’S BIC CODE (11 DIGITS) (MANDATORY) :16S:SETPRTY :16R:AMT :19A::SETT//EUR CASH AMOUNT WITH TWO DECIMALS (MANDATORY) :16S:AMT :16S:SETDET

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6 SUC FIXED INCOME matching system

6.1 Foreword/scenario: The SUC matching system for fixed income started operations on April 12, 2007. The following are the most important issues to be taken into consideration and specifics applicable to account owners in their communications with account servicers.

6.2 Most important issues: The tolerance level set up by IBERCLEAR is: 10 EUR. Some fields must be populated correctly:

Counterparty (field REAG/DEAG). Whenever the trade is against a DIRECT ACCOUNT HOLDER (please see candidates in below list), their BIC codes must be included in this field.

Ordering party at counterparty (field RECU/DECU)2

Client of counterparty, registration or holder (field BUYR/SELL)3

The use of some fields is mandatory while other remain optional; though if used they become matching criteria. TRADE DATE IS A MANDATORY AND MATCHING CRITERION.

When an ICSD is involved in the operation (Euroclear and Clearstream), it is compulsory to populate the participant account number.

Though it is not of compulsory use, account servicers may report allegements via MT 578. In case your provider uses this message, please make sure your system is able to read them.

6.3 Annexes: SAMPLE OF INSTRUCTION :16R:GENL :20C::SEME//YOUR REFERENCE :23G:NEWM :98C::PREP//YYYYMMDD :16R:LINK :20C::COMM//UP TO 16 CHARACTERS (OPTIONAL BUT WHEN USED IT IS A MATCHING CRITERIA) :16S:LINK :16S:GENL :16R:TRADDET :98A::SETT//YYYYMMDD (MANDATORY) :98A::TRAD//YYYYMMDD (MANDATORY) :35B:ISIN ESXXXXXXXXXX (MANDATORY) :16S:TRADDET

2 Must be published in the counterparties’ database published by CSD (Iberclear). 3 Must be published in the counterparties’ database published by CSD (Iberclear).

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19

:16R:FIAC :36B::SETT//FAMT/FACE OR NOMINAL VALUE (MANDATORY) :97A::SAFE//123400000XXXXX (MANDATORY) :16S:FIAC :16R:SETDET :22F::SETR//TRAD :16R:SETPRTY :95P::PSET//IBRCESMMCDE :16S:SETPRTY :16R:SETPRTY :95P::REAG//XXXXXXXXXXX (SPANISH COUNTERPARTY BIC CODE) or DIRECT ACCOUNT HOLDER BIC CODE :16S:SETPRTY :16R:SETPRTY :95P::RECU//XXXXXXXXXXX (ORDERING PARTY AT COUNTERPARTY BIC CODE) (MANDATORY IF IT IS DIFERENT OF CLIENT OF COUNTERPARTY) :97A::SAFE//XXXXX (OPTIONAL) :16S:SETPRTY :16R:SETPRTY :95P::BUYR//XXXXXXXXXXX (CLIENT OF COUNTERPARTY BIC CODE) (MANDATORY) :97A::SAFE//XXXXX (OPTIONAL) :16S:SETPRTY :16R:AMT :19A::SETT//EURXXXXX, :16S:AMT :16S:SETDET

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LIST OF EXISTING DIRECT ACCOUNT HOLDERS (April 2007):

Market Code

BIC Long Name

3800 JPMSGB2LXXX JP MORGAN SECURITIES LONDON

3801 SBILGB2LXXX CITIGROUP GLOBAL MARKETS LIMITED

3802 MLILGB3LECL MERRILL LYNCH INTERNATIONAL BANK - LONDON

3803 DRESDEFFXXX DRESDNER BANK AG. - FRANKFURT

3804 MSLNGB2XXXX MORGAN STANLEY & CO INTL 1TD - LONDON

3805 SOGEFRPPHCM SOCIETE GENERALE PARIS

3808 BOFAGB2UXXX BANK OF AMERICA, N.A. LONDON

3809 BARCGB33XXX BARCLAYS BANK LONDON

3810 NOMAGB2LXXX NOMURA INTL PLC - LONDON

3811 EMTSGB2LXXX EURO MTS

3812 KREDBEBBXXX KBC BANK NV BRUSSELS

3815 IMITITMMXXX BANCA D'INTERMED.MOBILIARE IMI - MILAN

3817 GEBABEBB36A FORTIS BANK FINANCIAL MARKETS

3818 BBRUBEBB010 ING BELGIUM BRUSSELS

3821 COBADEFFXXX COMMERZBANK AG FRANKFURT

3823 BTECGB2LXXX BROKERTEC

3824 CSFBGB2LXXX CREDIT SUISSE FIRST BOS. (EUROPE)-LONDON

3825 CCFRFRPPXXX HSBC FRANCE

3826 DEUTDEFFXXX DEUTSCHE BANK AG FRANKFURT

3829 GSILGB2XXXX GOLDMAN SACHS INTERNATIONAL LONDON

3831 CCBPFRPPXXX NATEXIS BANQUES POPULAIRES - PARIS

3832 SLIIGB2LXXX LEHMAN BROTHERS INLT (EUROPE) - LONDON

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7 ADR settlement Instructions:

7.1 Foreword/scenario: It is convenient to indicate to Spanish agent that the instruction involved is related to an ADR operation; in some cases, this indication becomes essential for the instruction good end.

7.2 Requirement: As from November 2003, the below codes should be used to identify that the settlement is linked to an ADR operation: a) When the underlying stock is aimed to be deposited with the ADR agent in Spain for ADR issuance in the US: Sequence E, SETDET: - Field 22F::SETR//ISSU b) When the underlying stock is aimed to be deposited with the ADR agent in the US for local delivery in Spain through the Spanish agent: Sequence E, SETDET: - Field 22F::SETR//RELE

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7.2.1.1.1 Example: The MT 540 to be sent to the Spanish agent for scenario b)

STP INSTRUCTION SETTLEMENT CONFIRMATION MT 540 :16R:GENL :20C::SEME//Ref2 :23G:NEWM :16S:GENL :16R:TRADDET :98A::SETT//20030306 :98A::TRAD//20030303 :35B:ISIN ES0178430E18 :16S:TRADDET :16R:FIAC :36B::SETT//UNIT/4000, :97A::SAFE//ABC123-D4 :16S:FIAC :16R:SETDET :22F::SETR//RELE Indication of the ADR opertaion. :16R:SETPRTY :95P::PSET//IBRCESMM[SCL] :16S:SETPRTY :16R:SETPRTY :95P::DEAG//BBVAESMMXXX :16S:SETPRTY :16R:SETPRTY :95P::DECU//CITIUS33XXX :16S:SETPRTY :16R:SETPRTY :95P::DEI1//CUSTUS3CXXX Name of institution at DTC instructing CITIUS33 to convert ADR's and deliver locally. :97A::SAFE//nnnn DTC account number of the institution instructing to convert ADR's :16S:SETPRTY THE FOLLOWING IS AN OPTIONAL SUB-SEQUENCE. IF IT IS NOT STATED, THEN PREVIOUS SUB-SEQUENCE MUST INDICATE SELL, AND NOT DEI1. :16R:SETPRTY :95P::SELL//CLNTUS33POR Name of the institution instructing DEI1 to convert ADR's :97A::SAFE//nnnn Account number of final beneficiary at DEI1 :16S:SETPRTY :16S:SETDET

MT 544 :16R:GENL :20C::SEME//Conf2 :23G:NEWM :16R:LINK :20C::RELA//Ref2 :16S:LINK :16S:GENL :16R:TRADDET :98A::ESET//20030306 :98A::TRAD//20030303 :35B:ISIN ES0178430E18 :16S:TRADDET :16R:FIAC :36B::SETT//UNIT/4000, :97A::SAFE//ABC123-D4 :97A::CASH//EFG567-H8 :16S:FIAC :16R:SETDET :22F::SETR//RELE :16R:SETPRTY :95P::DEAG//BBVAESMMXXX :16S:SETPRTY :16R:SETPRTY :95P::DECU//CITIUS33XXX :16S:SETPRTY :16R:SETPRTY :95P::DEI1//CUSTUS3CXXX :97A::SAFE//nnnn :16S:SETPRTY :16R:SETPRTY :95P::SELL//CLNTUS33XXX :97A::SAFE//nnnn :16S:SETPRTY :16S:SETDET

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8 Contingent upon linkages:

8.1.1.1.1 Foreword/scenario: The Spain NMPG complies to the global market practice on linkages. For more details, see S&R Linkages Market Practice on www.smpg.info.

8.1.1.1.2 Requirement: We indicate below the different possibilities to link instructions offered to clients making this type of trades. IMPORTANT NOTES: - In case none of the alternatives is used or they are used in the wrong way, the members of the Spain NMPG cannot guaranty neither STP treatment of the linked trades or usage of specific securities for the rest of linked instructions. The members of the Spain NMPG will decline all kind of responsibilities in case all or some of the linked instructions cannot be settled or are settled late due to the client’s non-compliance with any of the alternatives stated below. - When linked instructions are received, systems may automatically look for ALL linked trades. This process is done during a maximum period of time, established by each member of the Spain NMPG. In case any of the linked instructions is not found, ALL THE REST received may be rejected and new instructions must be issued in that case.

Fields related: 1.- Sequence A Field 99B::TOSE//Number of total instructions linked. Field 99B::SETT//Current instruction number out of total linked. 2.- Sub-sequence A1 Field 22F::LINK//INFO To be optionally used along with field 20C::POOL// 3.- Sub-sequence A1 Field 22F::LINK//BEFO Field 22F::LINK//AFTE Field 22F::LINK//WITH To be populated at the minimum in the second and following messages. If possible, should be populated in all messages. 4.- Sub-sequence A1 Field 20C::POOL//common reference applied to all the linked instructions ! General Applicable Rule: Client trades in which final beneficiary (registration) is involved or is to be kept throughout all the trades life, must always bear sequence F, OTHRPRTY as follows: 95P::INVE//Bic code of beneficiary OR 95Q::INVE//Name of beneficiary 97A::SAFE//XXXXXX Beneficiary sub-account number at agent receiving

the instructions.

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Any of the below alternatives is possible and STP treated, regardless of compulsory use of the Geneneral Applicable Rule described above if necessary: a) 1 + 2 + 3 + 4 PREFERRED OPTION b) 1 + 3 + 4 c) 1 + 2 + 4 d) 1 + 4 e) 3

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8.1.1.1.3 Illustrations:

STP MKT.INSTRUCTION STP CLIENT-SIDE INSTRUCTION A

STP CLIENT-SIDE INSTRUCTION B

MKT. CONFIRMATION SETTLEMENT CLIENT-SIDE CONFIRMATION A

SETTLEMENT CLIENT- SIDE CONFIRMATION A

MT 541 :16R:GENL :20C::SEME//Ref3 :23G:NEWM :99B::TOSE//003 :99B::SETT//001 :16R:LINK :22F::LINK//INFO :20C::POOL//Pool1 :16S:LINK :16R:LINK :22F::LINK//BEFO :20C::RELA//Ref3A :16S:LINK :16S:GENL :16R:TRADDET :94B::TRAD//EXCH :98A::SETT//20030306 :98A::TRAD//20030303 :35B:ISIN ES0178430E18 :16S:TRADDET :16R:FIAC :36B::SETT//UNIT/1000, :97A::SAFE//ABC123-D4 :16S:FIAC :16R:SETDET :22F::SETR//TRAD :16R:SETPRTY :95P::DEAG//DBSCESMMXXX :16S:SETPRTY :16R:SETPRTY :95P::SELL//DBSCESMMXXX :16S:SETPRTY :16R:SETPRTY :95P::PSET//IBRCESMM[SCL] :16S:SETPRTY :16R:AMT :19A::SETT//EUR1234,89 :16S:AMT :16S:SETDET

MT 543 :16R:GENL :20C::SEME//Ref3A :23G:NEWM :99B::TOSE//003 :99B::SETT//002 :16R:LINK :22F::LINK//INFO :20C::POOL//Pool1 :16S:LINK :16R:LINK :22F::LINK//AFTE :20C::RELA//Ref3 :16S:LINK :16S:GENL :16R:TRADDET :94B::TRAD//OTCO :98A::SETT//20030306 :98A::TRAD//20030303 :35B:ISIN ES0178430E18 :16S:TRADDET :16R:FIAC :36B::SETT//UNIT/500, :97A::SAFE//ABC123-D4 :16S:FIAC :16R:SETDET :22F::SETR//TRAD :16R:SETPRTY :95P::REAG//BBVAESMMXXX :16S:SETPRTY :16R:SETPRTY :95P::PSET//IBRCESMM[SCL] :16S:SETPRTY :16R:AMT :19A::SETT//EUR567,89 :16S:AMT :16S:SETDET :16R:OTHRPRTY :95::INVE//IRVTUS3N :97A::SAFE//NNNNNNABC :16S:OTHRPRTY

MT 543 :16R:GENL :20C::SEME//Ref3B :23G:NEWM :99B::TOSE//003 :99B::SETT//003 :16R:LINK :22F::LINK//INFO :20C::POOL//Pool1 :16S:LINK :16R:LINK :22F::LINK//AFTE :20C::RELA//Ref3 :16S:LINK :16S:GENL :16R:TRADDET :94B::TRAD//OTCO :98A::SETT//20030306 :98A::TRAD//20030303 :35B:ISIN ES0178430E18 :16S:TRADDET :16R:FIAC :36B::SETT//UNIT/500, :97A::SAFE//ABC123-D4 :16S:FIAC :16R:SETDET :22F::SETR//TRAD :16R:SETPRTY :95P::REAG//BSCHESMMXXX :16S:SETPRTY :16R:SETPRTY :95P::PSET//IBRCESMM[SCL] :16S:SETPRTY :16R:AMT :19A::SETT//EUR567,89 :16S:AMT :16S:SETDET :16R:OTHRPRTY :95::INVE//SBOSUS3C :97A::SAFE//NNNNNNDEF :16S:OTHRPRTY

MT 545 :16R:GENL :20C::SEME//Conf3 :23G:NEWM :16R:LINK :22F::LINK//INFO :20C::POOL//Pool1 :16S:LINK :16R:LINK :13A::LINK//541 :20C::RELA//Ref3 :16S:LINK :16S:GENL :16R:TRADDET :94B::TRAD//EXCH :98A::ESET//20030306 :98A::SETT//20030306 :98A::TRAD//20030303 :35B:ISIN ES0178430E18 :16S:TRADDET :16R:FIAC :36B::ESTT//UNIT/1000, :97A::SAFE//ABC123-D4 :16S:FIAC :16R:SETDET :22F::SETR//TRAD :16R:SETPRTY :95P::DEAG//DBSCESMMXXX :16S:SETPRTY :16R:SETPRTY :95P::SELL//DBSCESMMXXX :16S:SETPRTY :16R:SETPRTY :95P::PSET//IBRCESMM[SCL] :16S:SETPRTY :16R:AMT :19A::ESTT//EUR1234,89 :16S:AMT :16S:SETDET

MT 547 :16R:GENL :20C::SEME//Conf3A :23G:NEWM :16R:LINK :22F::LINK//INFO :20C::POOL//Pool1 :16S:LINK :16R:LINK :13A::LINK//543 :20C::RELA//Ref3A :16S:LINK :16S:GENL :16R:TRADDET :94B::TRAD//OTCO :98A::ESET//20030306 :98A::SETT//20030306 :98A::TRAD//20030303 :35B:ISIN ES0178430E18 :16S:TRADDET :16R:FIAC :36B::ESTT//UNIT/500, :97A::SAFE//ABC123-D4 :16S:FIAC :16R:SETDET :22F::SETR//TRAD :16R:SETPRTY :95P::REAG//BBVAESMMXXX :16S:SETPRTY :16R:SETPRTY :95P::BUYR//IRVTUS3NXXX :97A::SAFE//NNNNNNABC :16S:SETPRTY :16R:SETPRTY :95P::PSET//IBRCESMM[SCL] :16S:SETPRTY :16R:AMT :19A::ESTT//EUR567,89 :16S:AMT :16S:SETDET

MT 547 :16R:GENL :20C::SEME//Conf3B :23G:NEWM :16R:LINK :22F::LINK//INFO :20C::POOL//Pool1 :16S:LINK :16R:LINK :13A::LINK//543 :20C::RELA//Ref3B :16S:LINK :16S:GENL :16R:TRADDET :94B::TRAD//OTCO :98A::ESET//20030306 :98A::SETT//20030306 :98A::TRAD//20030303 :35B:ISIN ES0178430E18 :16S:TRADDET :16R:FIAC :36B::ESTT//UNIT/500, :97A::SAFE//ABC123-D4 :16S:FIAC :16R:SETDET :22F::SETR//TRAD :16R:SETPRTY :95P::REAG//BSCHESMMXXX :16S:SETPRTY :16R:SETPRTY :95P::BUYR//SBOSUS3CXXX :97A::SAFE//NNNNNNDEF :16S:SETPRTY :16R:SETPRTY :95P::PSET//IBRCESMM[SCL] :16S:SETPRTY :16R:AMT :19A::ESTT//EUR567,89 :16S:AMT :16S:SETDET

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9 Extension to Settlement Confirmation and Free of Payment

The set of common elements can also be used for settlement confirmation and free of payment transaction with the following differences:

9.1.1.1.1 Free of payments Free of payment instruction contains the same elements as for the against payment transaction except for the elements pertaining to the settlement amounts. The settlement amount(s) is not required.

9.1.1.1.2 Confirms The Settlement confirmation – whether it is a free of payment or an against payment transaction – should contain the same elements as the original instruction PLUS: - The reference to the original settlement instruction that was received. This is done using

the Linkage Block and the qualifier 20C::RELA//16x EXCEPT: - The settlement date given in the confirmation is the effective settlement date (which

might differ from the instructed settlement date as stated in the instruction). This translates in ISO 15022 messages by using the qualifier ESET rather than SETT as qualifier for the date field 98a.

- The quantity of financial instrument in the confirmation is the effective settled quantity. This translates in ISO 15022 messages by using the qualifier ESTT rather than SETT as qualifier for the quantity of financial instrument field 36B.

- The settlement amount given in the confirmation is the effective settlement amount. This translates in ISO 15022 messages by using the qualifier ESTT rather than SETT as qualifier for the amount field 19A.