In its meeting on July 16, 2009 the Board of Directors of Borsa Italiana approved the amendments to the …
Instructions described in this Notice.
The amendments will enter into force on September 29, 2009.
The present microstructure of the MTA market provides for the start of continuous trading at 09:05, i.e. four minutes after the end of the pre-opening phase and two minutes after the end of the conclusion of contracts coming from the opening phase. There were two main reasons for this configuration of the trading phases:
– the traditionally high number of contracts concluded at the end of the opening phase on the MTA market had made it necessary, on the old trading platform, to have a short interval during which the system was not operative for the matching of compatible orders and then for the actual conclusion of contracts;
– again owing to the large number of contracts concluded, it had been deemed desirable to allow intermediaries to receive execution messages for the opening contracts before the start of the continuous trading phase.
When the migration to the new TradElect platform was made, it was decided to leave the trading hours unchanged in order to reduce the operational impact on market intermediaries and to test the ability of the platform to handle the volumes of some financial instruments, such as preemption rights in the opening phase of the last day on which they are traded.
The experience gained in the first few months of the new platform’s functioning has shown that the trading systems and those of our intermediaries are now able to transmit, receive and process huge volumes of contracts concluded in the opening phase, without any problems and in a very short lapse of time.
In order to harmonise trading hours at Group level and align the start of continuous trading with that of the other main European markets, it is changed the timetable of the phases between the end of the pre-opening phase and the start of continuous trading.
The conclusion (and the dissemination to the market) of contracts concluded at the end of the opening phase, which at present takes place at 9:03, in the new configuration will take place at 9:00/9:01, or in other words at the instant subsequent to the end of the pre-auction phase.
The change of the configuration of trading hours has a consequence that, unlike what happens today, the start of continuous trading will vary from security to security and no longer be at the same time for all the different securities.1
Analogously, for segments or markets2 in which the opening auction ends at 10:55, it is provided to lengthen the opening pre-auction to 11:00/11:01.
These amendments to the trading hours shall also apply to the closing-action phase.
Lastly, in order to simplify the structure of the trading phases of all the different instruments traded on the TradElect platform in the passage from opening to continuous trading, it is changed also the structure of trading hours ford SEDEX, MOT and ETFplus markets.
For a clear vision of the amendments it is suggested to see the following modified articles.
INSTRUCTIONS TO THE MARKET RULES
TITLE IA.4
ELECTRONIC SHARE MARKET (MTA) AND THE MIV MARKET
Chapter IA.4.1 — Trading methods
omissis Article IA.4.1.4
(Trading methods for the blue-chip segment of the MTA market)
Blue-chip securities shall be traded using the auction and continuous trading methods with the following trading hours:
08.00 – 09.00 (9.00.00 – 9.00.59) opening auction, pre-auction phase;
09.01 – 09.03 opening auction, validation phase;
09.03 – 09.05 opening auction, opening phase;
09.05 – 17.25 continuous trading.
17.25 – 17.30 (17.30.00 – 17.30.59) closing auction, pre-auction phase;
17.31 – 17.35 closing auction, validation and closing phase;
08.00 – 09.00 (9.00.00 – 9.00.59) opening auction (pre-auction, validation and opening phase)
09.00 – 17.25 contiuous trading
17.25 – 17.30 (17.30.00 – 17.30.59) closing auction (pre-auction, validation and closing phase)
Pursuant to Article 4.1.5 of the Rules, the pre-auction phases may end at a time within
the last minute of such phases.
The continuous trading phase shall start at the end of the opening auction phase.
Article IA.4.1.5
(Trading methods for the Star segment of the MTA market)
Star securities shall be traded using the auction and continuous trading methods with the following trading hours:
08.00 – 09.00 (9.00.00 – 9.00.59) opening auction, pre-auction phase;
09.01 – 09.03 opening auction, validation phase;
09.03 – 09.05 opening auction, opening phase;
09.05 – 17.25 continuous trading.
17.25 – 17.30 (17.30.00 – 17.30.59) closing auction, pre-auction phase;
17.31 – 17.35 closing auction, validation and closing phase;
08.00 – 09.00 (9.00.00 – 9.00.59) opening auction (pre-auction, validation and opening phase)
09.00 – 17.25 contiuous trading
17.25 – 17.30 (17.30.00 – 17.30.59) closing auction (pre-auction, validation and closing phase)
Pursuant to Article 4.1.5 of the Rules, the pre-auction phases may end at a time within
the last minute of such phases.
The continuous trading phase shall start at the end of the opening auction phase.
Article IA.4.1.6
(Trading methods for the standard segment of the MTA market)
1. Standard securities shall be traded using the auction and continuous trading methods with the following trading hours:
a) class 1
08.00 – 10.55 (10.55.00 – 10.55.59) opening auction pre-auction phase;
10.56 – 10.58 opening auction, validation phase;
10.58 – 11.00 opening auction, opening phase;
11.00 – 16.25 continuous trading
16.25 – 16.30 (16.30.00 – 16.30.59) closing auction, pre-auction phase;
16.31 – 16.35 closing auction, validation and closing phase;
08.00 – 11.00 (11.00.00 – 11.00.59) opening auction (pre-auction, validation and
opening phase)
11.00 – 16.25 continuous trading;
16.25 – 16.30 (16.30.00 – 16.30.59) closing auction (pre-auction, validation and
closing phase)
b) class 2
08.00 – 10.55 (10.55.00 – 10.55.59) opening auction, pre-auction phase;
10.56 – 10.58 opening auction, validation phase;
10.58 – 11.00 opening auction, opening phase
11.00 – 16.30 (16.30.00 – 16.30.59) closing auction, pre-auction phase;
16.31 – 16.35 closing auction, validation and closing phase;
08.00 – 11.00 (11.00.00 – 11.00.59) opening auction (pre-auction, validation and
opening phase)
11.00 – 16.30 (16.30.00 – 16.30.59) closing auction (pre-auction, validation and
closing phase)
Pursuant to Article 4.1.5 of the Rules, the pre-auction phases may end at a time within
the last minute of such phases.
The continuous trading phase shall start at the end of the opening auction phase.
The closing pre-auction phase shall start at the end of the opening auction phase.
2. When first admitted, companies shall be admitted to trading in class 1. Subsequently, within September of every year, Borsa Italiana may change a security’s trading class on the basis of the frequency of trades and their average daily value in the six preceding months.
Article IA.4.1.7
(Trading methods for the MTA International segment)
1. MTA International segment securities shall be traded using the auction and continuous trading methods with the following trading hours:
08.00 – 09.00 (9.00.00 – 9.00.59) opening auction, pre-auction phase;
09.01 – 09.03 opening auction, validation phase;
09.03 – 09.05 opening auction, opening phase;
09.05 – 17.25 continuous trading.
17.25 – 17.30 (17.30.00 – 17.30.59) closing auction, pre-auction phase;
17.31 – 17.35 closing auction, validation and closing phase;
08.00 – 09.00 (9.00.00 – 9.00.59) opening auction (pre-auction, validation and opening
phase)
09.00 – 17.25 contiuous trading
17.25 – 17.30 (17.30.00 – 17.30.59) closing auction (pre-auction, validation and closing
phase)
Pursuant to Article 4.1.5 of the Rules, the pre-auction phases may end at a time within
the last minute of such phases.
The continuous trading phase shall start at the end of the opening auction phase.
omissis
Article IA.4.1.9
(Trading methods for the MIV market)
1. Units of closed-end funds shall be traded in the MIV market closed-end fund segment, with
the following trading hours:
08.00 – 10.55 (10.55.00 – 10.55.59) opening auction, pre-auction phase;
10.56 – 10.58 opening auction, validation phase;
10.58 – 11.00 opening auction, opening phase;
11.00 – 16.30 (16.30.00 – 16.30.59) closing auction, pre-auction phase;
16.31 – 16.35 closing auction, validation and closing phase.
08.00 – 11.00 (11.00.00 – 11.00.59) opening auction (pre-auction, validation and opening phase)
11.00 – 16.30 (16.30.00 – 16.30.59) closing auction (pre-auction, validation and closing phase)
Pursuant to Article 4.1.5 of the Rules, the pre-auction phases may end at a time within the last minute of such phases.
The closing pre-auction phase shall start at the end of the opening auction phase.
2. Shares of investment companies shall be traded in the investment companies segment, class 1 and class 2, with the following trading hours:
a) class 1
08.00 – 10.55 (10.55.00 – 10.55.59) opening auction, pre-auction phase;
10.56 – 10.58 opening auction, validation phase;
10.58 – 11.00 opening auction, opening phase;
11.00 – 16.25 continuous trading.
16.25 – 16.30 (16.30.00 – 16.30.59) closing auction, pre-auction phase;
16.31 – 16.35 closing auction, validation and closing phase;
08.00 – 11.00 (11.00.00 – 11.00.59) opening auction (pre-auction, validation and
opening phase)
11.00 – 16.25 continuous trading;
16.25 – 16.30 (16.30.00 – 16.30.59) closing auction (pre-auction, validation and
closing phase)
b) class 2
08.00 – 10.55 (10.55.00 – 10.55.59) opening auction, pre-auction phase;
10.56 – 10.58 opening auction, validation phase;
10.58 – 11.00 opening auction, opening phase;
11.00 – 16.30 (16.30.00 – 16.30.59) closing auction, pre-auction phase;
16.31 – 16.35 closing auction, validation and closing phase.
08.00 – 11.00 (11.00.00 – 11.00.59) opening auction (pre-auction, validation and
opening phase)
11.00 – 16.30 (16.30.00 – 16.30.59) closing auction (pre-auction, validation and
closing phase)
Pursuant to Article 4.1.5 of the Rules, the pre-auction phases may end at a time within the
last minute of such phases.
The continuous trading phase shall start at the end of the opening auction phase.
The closing pre-auction phase shall start at the end of the opening auction phase.
omissis
TITLE IA.5
ELECTRONIC SECURITISED DERIVATIVES MARKET (SEDEX)
Chapter IA.5.1 — Trading methods
omissis
Article IA.5.1.5
(Trading methods)
1. Covered warrants and certificates shall be traded using the continuous trading methods
referred to in Article 4.2.2, paragraph 1, of the Rules.
2. The trading hours for covered warrants and certificates shall be as follows:
08.00 – 09.00 cancellation orders;
09.00 09.05 – 17.25 continuous trading.
omissis
TITLE IA.7
ELECTRONIC BOND MARKET (MOT)
Chapter IA.7.1 – Trading Methods
omissis
Article IA.7.1.3
(Trading hours)
1. Securities shall be traded in the segments referred to in Article IA.7.1.2 using the auction
and continuous trading methods with the following trading hours:
• in the DomesticMOT segment,
– for the financial instruments of the “Italian government securities class”
08.00 – 09.30 (09.30.00 – 09.30.59) Opening auction, pre-auction phase
09.31 – 09.35 Opening auction, validation phase
09.35 – 09.40
09.40 – 17.30
Opening auction, opening phase
Continuous trading
08.00 – 09.30 (09.30.00 – 09.30.59) Opening auction (pre-auction, validation and
opening phase)
09.30 – 17.30 Continuous trading
– for the financial instrument of the “debt securities in euros class”
08.00 – 10.00 (10.00.00 – 10.00.59) Opening auction, pre-auction phase
10.01 – 10.05 Opening auction, validation phase
10.05 – 10.10
10.10 – 17.30
Opening auction, opening phase
Continuous trading
08.00 – 10.00 (10.00.00 – 10.00.59) Opening auction (pre-auction, validation and
opening phase)
10.00 – 17.30 Continuous trading
• in the EuroMOT segment:
– for the financial instrument “Eurobond, ABS, securities of foreign issuers and other
debt securities, including other currencies, class”.
08.00 – 09.00 (09.00.00 – 09.00.59) Opening auction, pre-auction phase
09.01 – 09.05 Opening auction, pre-auction phase
09.05 – 09.10 Opening auction, opening phase
09.10 – 17.30 Continuous trading
08.00 – 09.00 (09.00.00 – 09.00.59) Opening auction (pre-auction, validation and
opening phase)
09.00 – 17.30 Continuous trading
Pursuant to Article 4.4.4, paragraph 3, of the Rules, the pre-auction phases may end at a time
within the last minute of such phases.
The continuous trading phases shall start at the end of the opening auction phase.
omissis
TITLE IA.8
ETFPLUS MARKET
Chapter IA.8.1 – Trading methods
omissis
Article IA.8.1.3
(Trading methods in the ETFplus market)
1. Units/shares of open-end funds and ETCs shall be traded with the following trading hours:
9.00 9.05 – 17.25 continuous trading
omissis
1 In fact, at present the “opening auction, opening phase” ends at 9:05, when continuous trading of all the different securities starts. With the new configuration, instead, the end of the pre-auction phase is determined in a random manner by the system at any moment between 9:00:00 and 9:00:59. Immediately after this moment there is the validation, if any, of the opening price and the related execution and transmission of contracts. At the end of these operations the system activates continuous trading, which can therefore take place at the level of individual security at
the instant following contract execution.
2 Standard segment and MIV market
Source: ETFWorld.co.uk – Borsa Italiana
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