MOT, Borsa Italiana's fixed income market, today announced the successful migration to the electronic trading platform supporting the electronic equity market (MTA).
While the MOT and MTA will remain two different markets with separate access and independent operational functionality, MOT now supports a number of functions already available on the electronic equity market. The migration also brings enhancements in terms of microstructure efficiency, operational power and capacity and greater access flexibility for the brokers. The introduction of a sole auction phase at the start of the session (opening auction), and elimination of the preliminary-auction and definitive-auction phases;The possibility of introducing a closing auction;The adoption of provisions regarding orders similar to those of the MTA;The possibility of entering cross orders during the continuous trading, provided that such orders correspond to customers' orders and that the execution price is between the best bid price and the best ask price;The adoption of a control price similar to those of the share market (reference price, during opening-auction; opening price during the subsequent phases);The adoption of provisions regarding automatic controls on trading (price variation limits on orders and contracts) similar to those of the MTA.
"The development of this new trading platform underlines Borsa Italiana's commitment to investing in the fixed income market, which is a key component of our capital market infrastructure and an important driver for growth amongst Italian companies. The functionality of the new platform meets the changing needs of major market participants and this is reflected in the decision of Poste Italiane, Banca Intesa and Mediobanca to list the bonds they have issued or placed on the market to achieve more transparency and to offer more competitive prices to their clients," said Massimo Capuano, President and CEO of Borsa Italiana. He added, "From the point of view of the Borsa Italiana Group, this is an important step in the process of rationalising and simplifying the trading platforms of our markets for the benefit of all market participants. The final stage of this process will be the migration of EuroMOT, the electronic market for Eurobonds."
Other benefits include:
Specialists will be introduced to support liquidity and to give investors stronger guarantees. Their activity may be referred both to newly admitted and already traded financial instruments.