In a medium saucepan, heat broth, clam juice, wine, saffron, bay leaf and thyme.

Simmer for 10 minutes.

Season with salt and pepper and keep hot on a back burner.

Preheat the oven to 350°F.

In a shallow paella pan or large (about 18-inches wide) ovenproof skillet, heat 1/2 cup of the oil over medium high heat.

Add squid and small shrimp and cook until shrimp are opaque.

Using a slotted spoon, transfer squid and shrimp to a large plate and set aside.

Add remaining 2 tablespoons oil, onions and garlic and cook over medium heat until softened.

Add tomato sauce and red peppers and cook for 2 to 3 minutes more, stirring well.

Add rice and stir to completely coat with onion mixture.

Return squid and shrimp to the skillet and stir in peas.

Reserve 1 cup of the broth, then pour remaining hot broth into skillet and cook, uncovered, at a very low simmer for 15 minutes, or until rice begins to absorb most of the liquid.

Stir only once to make sure nothing is sticking to the bottom, then arrange jumbo shrimp, mussels and clams on top of the paella, pushing them down into the rice and broth.

Transfer to oven and bake 20 to 25 minutes, or until liquid is absorbed, rice is just cooked and mussels and clams have opened. (Check the paella after 15 minutes and if it seems very dry, add the remaining 1 cup of broth).

Remove from the oven, cover with foil and set aside to let rest 5 minutes.

Sprinkle with parsley and serve.