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Despite the geopolitical tensions, which continue to represent an element of uncertainty, the macroeconomic context for 2004 may be defined as more positive, encouraged by low interest rates and fiscal policies which are intended to prop up production output.
In this context, the Borsa Italiana Group has recorded important results from a development and efficiency viewpoint, having integrated the post-trading activity with start-up of the Central Counterparty for the equity market and the new settlement system Express II, thus providing the Italian market with a secure and efficient financial infrastructure in line with the best international standards; looking to the future, the Group intends to confirm its contribution - together with the other Authorities - to the process of tightening up our financial and regulatory system".
"The work carried out this year - says Massimo Capuano, President and CEO of Borsa Italiana, is the starting point for a further thrust to the Group's growth on the international stage, both from the industrial viewpoint and in terms of participating towards the development of a European financial market. At home, integration was completed of the organizational and operative structure between front end and back end, as the market participants required.
Though in a situation characterized by criticalities affecting certain Italian companies, including some highly important ones for investors, the Italian market is today able to react in a mature and timely way. The initiatives that will be taken case by case or designed to produce a new organization of the supervisory tasks will see a conscious participation from Borsa Italiana in its established role in the management of regulated markets.
Many of the initiatives started up in 2003, among which restyling of the Nuovo Mercato and start-up of the Expandi market dedicated to small and medium size businesses wishing to approach the capital market, will have an impact in 2004, contributing to the development and broadening of the official list, which may also reap the benefit of the effect of the recent tax incentives on quotation and on the funds that invest in mid and small caps.
The corporate bonds market - thanks also to the investments already made in the MOT platform (Italian electronic bond market) - will be further developed, also in competition with the Luxembourg market, counting on the strong will and interest of the entire Italian system.
2004, with election of the President of the FESE (Federation of European Securities Exchanges), will be the year in which Borsa Italiana will be able and will have to commit itself even further in order to affirm its guiding role both in respect of the European directives and in the consolidation between the various continental stock exchanges.
"In the course of 2003, the Central Counterparty service managed by Cassa di Compensazione e Garanzia (CC&G) was put in place, replacing the previous mechanisms for guaranteeing trades, thus the Italian market today has a risk management system that is open for interoperability with similar foreign systems.
Monte Titoli, through a process of continuous dialogue with the supervisory authorities and with the market participants, has continued its work of putting in place the new clearance system Express II, introduced in December last for fixed income securities and scheduled for implementation with all the other financial instruments in January next.
Communication in real time of the S&P/Mib index started in June, while November saw the first trades on the relative ETF, the first of an array of financial instruments which will have the S&P/Mib as their underlying index. Characterized by a more complete representation of the Italian capital market, thanks to the role of sectorial classification in keeping with international best practice and to the consideration the free-float of the listed companies is held in, the new index - the fruit of a collaboration between Borsa Italiana and Standard & Poor's - has all that is needed to effectively underly new products.
The equity derivatives market (Idem) was revamped, with a new version of the trading platform being put in place. Among the changes implemented, the introduction of the Circuit Breakers is of importance. This, as has already been the case for some time on the equity market and as occurs on other international derivatives markets, allows traded instruments to be automatically suspended when certain price variation limits are exceeded and, also automatically oversees the regular conduct of trades, thereby avoiding the risk of contracts being concluded at anomalous prices.
The activity of promoting the Italian markets continued with Italian and foreign brokers, today numbering 128 - where the number of international operators is particularly noteworthy, rising to 35 in the year.
Work in growing BIt System, Borsa Italiana's ICT company in partnership with SIA, continued as also did consolidation of the business of subsidiary company Piazza Affari Gestione e Servizi which operates the Congress and Training Centre in Palazzo Mezzanotte. Finally the new version of the Borsa Italiana web site www.borsaitaliana.it became operative, with new contents and services, and recorded over 150 million pages visited in the year".
At regulatory level, Borsa Italiana actively collaborated, together with the main associations of market participants, in the drafting of three positioning papers on the proposals contained in European directives regarding investment services and organization of the markets, prospectuses accompanying the offer of financial instruments, and rules governing take-over bids.
