Spain introduces reforms to allow companies to list on Wall Street

The Spanish government is implementing regulatory changes to allow domestic companies to list on U.S. stock exchanges, such as the NYSE and Nasdaq, without being required to relocate their corporate headquarters. This initiative aims to provide Spanish firms with access to deeper capital markets and a broader investor base, which often results in higher valuations compared to European markets.

The reform, often referred to as the ‘Ferrovial Law,’ follows the precedent set by the Ferrovial group, which moved its headquarters to the Netherlands in 2023 to facilitate easier access to New York markets. A primary technical obstacle addressed by the new decree is the lack of connection between Spanish and U.S. securities depositories, which previously made it difficult to maintain accurate shareholder registries across borders.

By amending the Law on Financial Instruments, the government intends to allow central securities depositories to maintain global accounts for securities issued in Spain that are also traded outside the European Union. This change would allow for the simultaneous negotiation of Spanish securities in foreign markets, moving beyond the current reliance on American Depositary Receipts (ADRs) used by major firms like Santander and BBVA.