IDEM market provides members with the best product offering on Italian equity derivatives, appealing to both institutional as well as retail investors.
FIB - Futures on FTSE MIB
MiniFIB - Mini Futures on FTSE MIB
- FTSE Italia PIR Mid Cap Futures
FDIV - Futures on FTSE MIB Dividend
MIBO - Options on FTSE MIB
MIBO - Weekly options on FTSE MIB
Italian stock futures - physical delivery
Italian stock futures - cash settled
Pan-European stock futures
Single stock dividend futures
Weekly stock options
Stock options European style
The new contract Futures on the FTSE Italia PIR Mid Cap TR Index
Starting on Monday 4 December, the Italian Derivatives Market (IDEM) of Borsa Italiana further extends their product range with the listing of the FTSE Italia PIR Mid Cap Futures.
The listing is addressing the strong and growing demand from global trading firms and asset managers to access an efficient financial instrument for directional trading and hedging purposes on the fast-growing Italian Mid Cap segment, following the implementation of the personal savings plan (PIR) law introduced in Italy earlier this year.
Trading hours for FTSE MIB Futures and FTSE MIB MiniFutures
From July 3rd 2017, IDEM, the Borsa Italiana derivatives market, has extended its trading hours. The change affects Futures and MiniFutures on FTSE MIB , the main Borsa Italiana index. Continuous trading is structured into a daytime session, which will end at 17:50, and an evening session, from 17:50 to 20:30. The evening session follows straight on from the daytime one. Offers made during the daytime session, if not yet executed, or only partly executed, may complete contracts during the evening session.
Contracts stipulated during the whole of the continuous trading session (daytime and evening) will form a single contractual position in terms of their margin lending. The closure price is calculated on the average, weighted for quantities, of the prices of the last 5% of contracts exchanged before 17:38.
The market model envisages the offsetting of contracts by CC&G on the same trading day.
IDEM provides members with specific types of orders that allow them to trade standard or tailor-made strategies.
Standard Combo Orders – standard strategy sent to the market as limit orders or market orders. Traders are not allowed to enter long-dated standard combinations since they are listed on a daily basis.
FLEXCO – functionality that allows members to structure, list and trade self-defined non-standard combinations involving different series and/or different underlying (belonging to the same market partition) with different execution ratios.
Traders can create and send Flexco to the market through a dedicated function that provides the member with simultaneous execution.
The functionality increases flexibility for traders in creating plain-vanilla (e.g price spreads, time spreads and straddles) as well as more complex and customized strategies. It also fully removes execution-risk for brokers: market participants are always confident to trade their combination at the desired price.
Since FLEXCO orders are listed on a specific order book but interact automatically with the individual legs of the strategy, they can be traded off according to two different ways.
For full details see the Instruction accompanying the Rules of the Markets organised and managed by Borsa Italiana
IDEM provides members with a specific functionality for block trading, allowing for reporting of large trades without market impact.
Members are allowed to send Cross and Committed orders:
- Committed cross: the counterparty is a specific and predetermined intermediary
- Internal Cross: both counterparties belong to the same member firm.
For Committed cross orders only, traders need to specify the code of their counterparty in order to match the trade. The central system keeps the trade report in a non-disclosed order book until the corresponding order with opposite sign is entered by the counterparty specified.
Committed cross and internal Cross orders can be traded through NORMAL or BTF execution:
- Normal: the price needs to be within the best bid-ask spread at the time of the execution
- Block-Trade-Facility (Btf ): if the order quantity is equal or higher to a minimum value defined by the Exchange, the execution price can be outside the best bid-ask spread. The quantity threshold and the maximum price divergence differ according to the product type.
Committed orders still not matched at the close of the trading session are automatically cancelled by the central system.
For the purposes of the automatic control of the regularity of trading and in order to preserve market integrity, Borsa Italiana defines the maximum size for normal orders, strategies and block trades.
Market makers on the IDEM market play a relevant role improving the liquidity of the market and the efficiency of the price discovery process.
Market makers must fulfill obligations in terms of series and expiries to be quoted, minimum quantity to be quoted, maximum spread allowed and time. Right now, there are more than 20 market making firms displaying bids and offers on a continuous basis or responding to "requests for quotes" on several underlyings. The list of market making firms active on the IDEM is available on Borsa Italiana's website.
Market Making Status
Members of the IDEM may apply for admission as market maker or specialist, provided that they have the necessary qualification to fulfill the obligations required.
Members can choose among five different market making statuses:
- Primary Market Maker (PMM): continuous quotation obligation, available for options and futures listed on IDEM Equity, also for electricity futures listed on IDEX
- Market Maker (MM): obligation to respond to quote requests, available for options listed on IDEM Equity and for electricity futures listed on IDEX
- Liquidity Provider (LP): continuous quotation obligation, available for options listed on IDEM Equity,
- Designated Market Maker: continuous quotation obligation, available for FTSE MIB weekly options listed on IDEM Equity
- Extended Market Maker (EMM): continuous quotation obligation, available for FTSE MIB Futures and FTSE MIB Mini Futures, in the evening session
Members of the IDEM may also apply for admission as "specialists" if they intends to use another company (belonging to the same group and authorized to trade in its home country) to perform quoting activity.
Specialists can choose among three market making statuses:
- Primary Specialist: continuous quotation obligation, same obligations as PMM
- Specialist: obligation to respond to RFQs, same obligations as MM
- Liquidity Provider Specialist: continuous quotation obligation, same obligations as LP
- Designated Specialist: continuous quotation obligation, same obligations as DMM