MOT, the only Italian regulated market, European leader in terms of turnover and trades

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MOT market was launched in 1994 with a view to facilitating access to the bond market for private investors and enhancing the efficiency of professional investor operations by offering them an electronic and completely automated trading system, right from the order entry phase up to the settlement of the executed trade.

MOT is the only Italian-regulated market dedicated, via its two segments DomesticMOT and EuroMOT, to the trading of Italian and foreign government securities, domestic and international bank and corporate bonds, supranational securities and asset-backed securities.

Since it was created, the market has posted steady growth, partly due to the consistently increasing number of intermediaries connected (directly or via interconnection system), to the point of occupying the first position in Europe in terms of trading and turnover on a retail market.

Trading on the market takes place via the same technological infrastructure used by London Stock Exchange. The trading platform utilized, Millenium Exchange, ensures a maximum level of efficiency, performance and reliability.

Moreover, in order to guarantee liquidity and transparency in the price formation process for the bonds traded, Borsa Italiana has set up an order driven market model with the optional presence of Specialist intermediaries.

The settlement of contracts on the various instruments takes place via the Monte Titoli settlement system for the DomesticMOT segment and through Euroclear and Clearstream Banking Luxembourg for instruments traded on the EuroMOT segment.

Contracts in currencies other than the Euro which are traded on the DomesticMOT segment are settled in Euros, based opon the ECB fixing for the last day on which such rate was fixed, preceeding the day of the transaction. The valuation of contracts traded in the EuroMOT segment, on the other hand, is carried out based on the currency in which the financial instruments are expressed.

The market provides also with the possibility of taking advantages of these two new services:

  • Distribution channel - after the great success of the BTP Italia placements, Borsa Italiana has provided corporate issuers with the opportunity to distribute their instruments directly on our platform. The innovative process starts with a distribution period in which conditional contracts will be concluded. Once this period will be finished and the issuer and the financial instruments admission requirements will be satisfied, the admission will become final and the date for the start of trading on the MOT market will be established.

  • Takeover Bid: Borsa Italiana has provided with the possibility to collect acceptances in the market in the case of an offer to buy back debt financial instruments.

Finally, for the instruments listed on DomesticMOT, the Central Counterparty system service is provided, while for the instruments listed on the EuroMOT segment, the service will be provided in the coming months.

Market Members

The market counts a high number of participants who are connected directly or via interconnection, including representatives of the most important Italian banking groups, on-line banks and leading international banking institutions.

The market members are subject to participation requirements as regards the organisational and technological structure used.

More specifically, Borsa Italiana verifies observance of the following requirements, which must be present on a continuing basis:

  • adequacy of the technological systems used for trading purposes;
  • sufficient staff with suitable professional qualifications;
  • adequate internal procedures and controls for trading activity;
  • identification of a compliance officer, who must have a good knowledge of the rules governing      the functioning of the markets and provide adequate support to the      intermediary's structures in their application;
  • adequate settlement procedures. 

Below the main features of the market:

  • MOT: the only regulated market in Italy
  • Transparency of the price formation mechanism
  • Disclosure of pre and post-trading information
  • Real-time monitoring of correct course of trading
  • Speed of execution of transactions
  • Pricing policy with constant attention to the needs of the various market players

 For any further details on the market structure, please see the links in the Related documents.