Italian Derivatives Market (IDEM)

What Is the Italian Derivatives Market?

The Italian Derivatives Market (IDEM) is a derivatives exchange settled in Milan, Italy. The IDEM is part of the Borsa Italiana, the Italian Stock Exchange, which is owned by the London Stock Exchange. The IDEM permits trades of futures contracts on indices, equities, and commodities like power, as well as mini contracts. In the same way as other derivatives exchanges across the world, the IDEM has seen a consistent increase in volume over the course of the last a very long time from both domestic and foreign investors.

Understanding the Italian Derivatives Market (IDEM)

The Borsa Italiana exchange traces all the way back to the mid 1800s when it was made to supplant the former Borsa di Comercio. The Italian Derivatives Market (IDEM) was sent off in 1994 by the Italian government. In 1997 the IDEM, alongside the Italian Stock Exchange board, was privatized by the Italian government. The government-controlled Stock Exchange Board gave control of IDEM and the Italian Stock Exchange over to the Borsa Italiana, which is held privately by the London Stock Exchange Group (LSE). The Borsa Italiana is responsible for the management of the IDEM and the Italian Stock Exchange.

The Italian Derivatives Market (IDEM) is cleared by the Cassa di Compensazione e Garanzia (CC&G), which is likewise part of the London Stock Exchange Group. The IDEM trades roughly 200,000 contracts daily, which places it in the top European derivatives exchanges by volume. The IDEM trades derivatives, explicitly options and futures.

Italian Derivatives Market Procedures

The Italian Derivatives Market (IDEM) works Monday through Friday, 8 a.m. to 8 p.m. CET, with pre-market meetings from 7:45 a.m. to 8 a.m. also, post-market meetings from 5:50 p.m. to 10 p.m. The unit of trade in the IDEM is the euro. In excess of 80 individuals from European countries are directly associated with the IDEM, and more than 20 market-production firms are active on the IDEM.

The Italian Derivatives Market (IDEM) trades derivatives essentially of the Financial Times Stock Exchange (FTSE) Milano Indice di Borsa (MIB) index. The FTSE MIB Index is the primary benchmark index for the Italian equity market, which accounts for roughly 80% of Italian domestic market capitalization and follows 40 Italian equities.

Products traded on the IDEM incorporate the FTSE MIB Index futures, FTSE MIB Index mini-futures, FTSE MIB Dividend Index futures, FTSE MIB Index options, FTSE MIB Index week after week options, Italian and Pan-European single stock futures, and Italian single stock options.

There are two fragments in the IDEM. IDEM Equity records both index and single-name futures and options and trades Italian and Pan-European derivatives. IDEX records Italian power futures and trades derivatives of commodities and related index derivatives.