TRATAMIENTO DE AGUAS RESIDUALES INDUSTRIALES

Diluted earnings per share are calculated by dividing the net profit for the period attributable to ordinary shareholders adjusted for the effect attributable to the dilutive potential ordinary shares by the weighted average number of ordinary shares outstanding in the period, adjusted by the weighted average number of ordinary shares that would be issued on the conversion of all the dilutive potential ordinary shares in to ordinary shares of the Company.

As of December 31, 2006 and 2005 there were no potential ordinary shares with dilutive effects.

23. Related party transactions

All related party transactions relate to balances and transactions with members of the Board of Directors and Senior Executives of the Group and are described in Note 4.

Given the nature of the business conducted by the Group companies and a large part of their shareholders (basically cre- dit institutions and investment services providers), practically all of them carry out operations related with the trading, set- tlement and issue of securities which generate revenues for the Group and are carried out under market conditions. However, no shareholder had a significant influence on the Group's business as at 31 December, 2005 and 2006.

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24. Other information

Set out below is an analysis of other information as at 31 December 2006 and 2005:

The main items included in the balance of these accounts are as follows:

1. Guarantee deposits received (in addition to the guarantee deposits made in cash - see Note 8): records the non-cash guarantee deposits recieved by the members of the clearing and settlement service, be it of Iberclear, totaling €703,268 thousand, or the stock exchange governing companies of Bilbao, Valencia and Bilbao, totaling €5,309 thousand. This account also records the guarantees (in addition to cash guarantees received - see Note 8) received by MEFF Renta Fija and MEFF Renta Variable formalized by its members as security for their positions in their respective markets, tota- ling €155,291 and €994,410 thousand, respectively.

2. Credit lines guaranteeing cash settlement at the Bank of Spain: includes the balance available for draw-down on the cre- dit lines of MEFF Services, totaling €666,545 thousand, and €36,055 thousand for guaranteeing cash settlement at the Bank of Spain in accordance with the technical appendix to the Rules of Organization and Functioning of Sociedad de Sistemas require the said company to maintain credit lines with one or more deposit-holding entities of sufficient liquidity and solvency that allow it to charge to its own treasury accounts items that cannot be charged to the accounts of other clearing members. Funds to clear any balance drawn down on these credit accounts are taken from the collective gua- rantee fund provided by member entities.

3. Transactions pending settlement: these include buy and sell trades awaiting settlement, as well as unconfirmed sell trades (only) pending settlement, for Iberclear and the stock-exchange governing companies in Bilbao, Valencia and Barcelona. For each item, the values relating to Exchange members are recorded separately from those relating to other settlement institutions. THOUSAND EUROS 2006 2005 Guarantees managed: Guarantees received- Received as surety 189,147 157,120 Received as pledge 1,207,564 1,167,410 Other 461,567 365,632 1,858,278 1,690,162 Guarantees received 103,306 103,306

Credit lines guaranteeing cash settlement at the Bank of Spain-

Balance available 702,600 702,600

Balance drawn down - -

702,600 702,600 Purchases pending settlement-

By Stock Exchange members 4,402,734 2,994,956

By other settlement institutions 3,398,751 1,320,339 7,801,485 4,315,295 Sales pending settlement-

By Stock Exchange members 3,967,428 1.580,643

By other settlement institutions 2,534,592 1,362,346 6,502,020 2,942,989 Sales pending confirmation-

By Stock Exchange members 942,657 1,197,629

By other settlement institutions 844,947 91,682

1,787,604 1,289,311 Sales pending repurchase-

By Stock Exchange members 316 -

By other settlement institutions 2,568 -

2,884 -

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exposure to credit risk with respect to its financial assets.

The credit risk inherent in assets purchased under resale agreements and cash and cash equivalents is minimal, since the counterparties are banking institutions assigned high ratings by international credit rating agencies.

With regard to the credit risk associated with cash collection of the various charges established by the Company by way of consideration for its services, practically all customers in terms of volume of billings are financial institutions subject to supervision by the pertinent regulators. Furthermore, the fact that the majority of services are collected during the statutory standard settlement period for the corresponding operations in each market means in practice that no balances receivable from customers exist as a result of ordinary activities. In any event, the credit risks attributable to trade receivables are reflected in the consolidated balance sheet, net of the bad debt provisions estimated by Group management on the basis of prior years' experience and its evaluation of the current economic environment.

It is necessary to differentiate between the clearing and settlement services provided by Iberclear and MEFF. In accordan- ce with prevailing legislation, Iberclear cannot incur any risk with participating entities, which provide all guarantees based on their individual activities and on a joint and several basis under the terms established by Royal Decree 116/February 14, 1992 and related implementing regulations. MEFF functions as the central counterparty for the activity of the derivatives market and, therefore, it is exposed to counterparty risk, which it covers by means of the management of the guarantees required of all participants in the market on the basis of sophisticated system for the measurement and control of open positions, which permits it to seek additional guarantees in view of the daily activities of members in real time, in accordan- ce with the terms of Royal Decree 1814/1991.