Italian Derivatives Market

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Italian Derivatives Market
Founded 1808
Headquarters Milan, Italy
Key People CEO Raffaele Jerusalmi
Products FTSE Italia index futures and mini-futures

The Italian Derivatives Market (IDEM) is part of the demutualized Italian stock exchange group Borsa Italiana, itself wholly owned by the London Stock Exchange since 2007.

IDEM ranked number 29 in 2009 in the Futures Industry Association's global list of top 53 derivatives exchanges measured by volume, a rise of 9.4% on 2008.[1] The FIA list, published in early April 2010, reports that that the Italian Derivatives Exchange's total volume for 2009 rose to 42.6 million from 38.9 million in 2008.


IDEM dates back to the 1808 establishment by vice-royal decree of its predecessor, the Borsa di Comercio (commodities exchange) in Milan. In 1991 the market began and intense period of modernisation through the introduction of electronic trading and the following year began to demutualize and received an infusion of capital.[2] In 2000 control of IDEM and the Italian Stock Exchange Board passed from the government-controlled Stock Exchange Board to the privately-held Borsa Italia, which is responsible for the organization and management of the two exchanges.

Key products[edit]

The IDEM trades futures contracts on equities, market indexes and electricity, plus mini-futures cintracts on indexes and options contracts on stocks and indexes. In mid-April 2010 the exchange began listing the FTSE MIB dividend futures contract, linked to stocks to the FTSE MIB index. The new contract allows traders to take a position on a share dividend expectation without exposure to the underlying stock.[3]

Recent performance[edit]

As well as the 9.4% rise in IDEM's annual trading volume for all of 2009 reported by the FIA, Borsa Italiana reported that derivatives trading volume for the six months to September 30, 2009 grew 15%. By contrast, average daily equity trading volume on the Italian Stock Exchange over the same period grew by just 5%.[4]

Key people[edit]

Chief Executive Officer Raffaele Jerusalmi.

Latest news[edit]

On April 1, 2010 Raffaele Jerusalmi was appointed CEO of IDEM's parent company, Borsa Italiana following the sudden resignation of former CEO Massimo Capuano, who had held the position since 1997. Capuano was one of the chief engineers of Borsa Italiana's takover by the London Stock Exchange group in 2007, the Financial Times reported.[5] However, it was LSE executives that engineered Capuano's removal from the post of Borsa Italiana CEO, the Financial Times also noted.