My final document preamble (thanks to Mico for pointing me in the right direction)
\documentclass{acm_proc_article-sp} %ACM template for conference proceedings
\usepackage[utf8x]{inputenc} %for special characters
\usepackage{listings} %for code sections
\usepackage[square,authoryear]{natbib} %for bibliography parametrization (inline citations with square brackets and author-year configuration)
\setcitestyle{square,aysep={},yysep={;}} %remove the comma between author and year from the default inline citation style (from section 2.9 of natbib documentation http://mirrors.fe.up.pt/pub/CTAN/macros/latex/contrib/natbib/natbib.pdf)
\let\cite\citep % make \cite command behave like \citep
\usepackage{url} %\url command
\usepackage[colorlinks=false]{hyperref} %hide color boxes around links
The bibliography style:
\bibliographystyle{ACM-Reference-Format-Journals}
\bibliography{library} % library.bib is the name of the Bibliography in this case
\documentclass
and end with\end{document}
.