Borsa Italiana

From MarketsWiki

Borsa Italiana

Founded	1997
Headquarters	Milan, Italy
Key People	Angelo Tantazzi, Chairman; Baroness (Janet) Cohen, Vice Chairman; Massimo Capuano, President and CEO
Products	Equity and Derivative Instruments
Web site	http://www.borsaitaliana.it/homepage/homepage.en.htm

Borsa Italiana S.p.A. is an exchange covering a number of markets: the Italian equities markets, (MTA/MTAX and Expandi Market); Italian derivatives market (IDEM); securitised derivatives market (SeDeX); electronic fixed income market (MOT); electronic ETFs and ETCs market (ETFplus); and the Electronic Market (MTF) where closed-end funds are traded. Borsa Italiana also operates an after-hours market, where financial instruments trade from 18.00 to 20.30, after the close of the daily market.

Background

On July 24, 2006, amendments to the Market Rules and accompanying Instructions were implemented, and MTA International was launched, a new segment within Borsa Italiana’s MTA regulated equity market. MTA International is dedicated to the trading of shares of foreign issuers already listed in other EU regulated markets.

In June 2007 Italian markets operator Borsa Italiana SpA considered rival offers from the London Stock Exchange Group Plc. and NYSE Euronext Inc., after the owner of the New York Stock Exchange joined the fray in making bids for the exchange. Borsa Italiana chose an offer worth 1.6 billion euros ($2.15 billion) from the London Stock Exchange that included the provision that each shareholder of the Italian exchange would receive 4.9 shares of the London Stock Exchange. ^[1] In October of 2007, the London Stock Exchange completed its takeover of the company.^[2]

In July 2008, Borsa Italiana announced its derivatives subsidiary IDEX will offer cash-settled power derivatives in October 2008.^[3]

Organization

Borsa Italiana organizes and manages the Italian stock market with the participation of nearly 130 domestic and international brokers who operate in Italy or from abroad through remote memberships, using a completely electronic trading system for the real-time execution of trades.

Borsa Italiana also performs organizational, commercial and promotional activities aimed at developing high value-added services for the financial community.

Shareholders of Borsa Italiana S.p.A. are issuing companies as well as domestic and international intermediaries including the most important Italian banks.

Its current privatized structure configures Borsa Italiana as a market management body endowed with operational autonomy and flexibility.

Borsa Italiana Group comprises five companies:

BIt Systems S.p.A. is responsible for the management, maintenance and development of the Group's information systems. It also provides Project Management and Systems Integration services to private and public operators, financial institutions and to the exchange industry, for the development and management of applications.

Piazza Affari Gestione & Servizi S.p.A. (PAGS), established in 2000 and entirely controlled by Borsa Italiana, provides facility and property management for Palazzo Mezzanotte and its Congress & Training Centre.

Cassa di Compensazione e Garanzia S.p.A. (CC&G), established in 1992 and of which Borsa Italiana acquired a controlling share in 2000, ensures market integrity by intervening as central counterparty, becoming the guarantor of the final settlement of the contracts.

Monte Titoli is the Italian Central Securities Depository and Settlement Company. Monte Titoli's custody, administration and settlement services are highly automated and available through different communication channels.

Servizio Titoli provides listed companies with software, outsourcing services and advisory for all operational phases of the corporate secretary; Servizio Titoli has more than 130 customers and around 5 million managed shareholders.