From Monday 30 March 2009, FTSE Group, the global index provider will calculate indices for Borsa Italiana’s markets.
This agreement, which was mutually consented upon by Standard & Poor’s and Borsa Italiana, arises from the merger between London Stock Exchange and Borsa Italiana and the desire to harmonise index providers across the enlarged Group. The FTSE Group is the primary calculator of indices for the London Stock Exchange.
Following the agreement with Standard & Poor’s, FTSE will replace the S&P/MIB index for Italian Blue Chips by renaming it the FTSE/MIB index.
It is the intention of FTSE and Borsa Italiana to retain the S&P/MIB methodology, limiting the change to the name, thereby ensuring investors and issuers of a seamless transition between index providers.
FTSE will also take responsibility for the calculation of the informative indices for Borsa Italiana’s Equity markets, a role currently undertaken by Borsa Italiana.
FTSE and Borsa Italiana are finalising a full package of indices for the Italian market based on industry best practice, more details of which will be available in the coming weeks.
The change in index provider will result in some small changes to Borsa Italiana’s Rule Book.
Background:
30 March 2009 is subject to a successful customer conformance and testing programme.
Launched jointly by Standard & Poor’s and Borsa Italiana in 2003, the S&P/MIB is accepted by the global markets as the headline indicator for Italian equities, and serves as the primary basis for structured products linked to Italian traded companies. 2003 saw the launch of the first Italian Exchange Traded Fund (ETF) based on the S&P/MIB and in 2004 S&P/MIB replaced the legacy MIB 30 index for futures and option trading on the IDEM.
