Euronext Milan

About

Euronext Milan is the central marketplace for the listing and trading of financial instruments in the Italian market and Cboe Clear Europe is pleased to offer clearing, settlement and risk management services for trades executed on Euronext Milan.

Cboe Clear Europe cleared its first Euronext Milan trades in September 2021 and now cleared over 1.4m trades in 2022.

We have a number of Important liquidity providers and investment banks now live and playing an active role in ensuring high matching rates and trades sent to Cboe Clear Europe for clearing. Clients are benefitting from cross netting with high volume MTF flow, reducing their post trade costs and lowering the cost of execution. We have a strong pipeline of new liquidity providers and banks in 2023 to grow market share and volume further.

As Cboe Clear Europe clears the same segments on MTFs, Euronext Milan trades can be netted with existing positions and not incur any additional settlement fees.

The Euronext Milan markets are listed below:

• MTA – Mercato Telematico Azionario (MIC Code MTAA)
  Shares, Depositary Receipts and subscription / pre-emptive rights
• BIt Eq MTF – BIt Global Equity Market (BIt GEM) (MIC Code MTAH)
  Shares and Depositary Receipts
• ETF+ – (MIC code ETFP)
  ETFs

Cboe Clear Europe maximises the operational and commercial benefits for trading and clearing participants as all trades cleared by Cboe Clear Europe are fully netted into one net settlement per ISIN per day. Cboe Clear Europe’s features includes:

• Preferred CCP clearing model
• Cross platform netting will deliver substantial settlement savings
• Direct Participant in Monte Titoli
• Trades will be incorporated in Cboe Clear Europe’s existing reporting
• Existing margin methodology may reduce margin requirements significantly

To take advantage of the benefits of preferred clearing with Euronext Milan contact the Cboe Clear Europe Relationship Management team who can provide an assessment of the savings resulting from the consolidation of Euronext Milan activity with Cboe Clear Europe. Contact us at [email protected]

Euronext Milan reporting

The CCP Identifier in Euronext Milan trade confirmations is available as follows:

MIT202 BIT – FIX Trading Gateway (FIX 5.0)

If a trade is cleared, when the Party Role (452)= Counterparty Firm (17), the Party ID will be populated with the CCP value of the CCP that will clear the trade:

Execution report

Tag 448 PartyID = EMCFNL2AXXX

MIT203 BIT – Native Trading Gateway Specification

If a trade is cleared, the counterparty will be populated with the CCP value of the CCP that will clear the trade:

RFQ Execution report	Tag 122 Contra Firm = EMCFNL2AXXX
Execution report	Tag 119 Counterparty = EMCFNL2AXXX

MIT204 BIT – Post Trade Gateway (FIX 5.0) Specification

If a trade is cleared when the Party Role (452)= Contra Firm(17), the Party ID will be populated with the CCP value of the CCP that will clear the trade:

Trade Capture report

Tag 448 PartyID = EMCFNL2AXXX

MIT205 BIT – Drop Copy Gateway (FIX 5.0) Specification

If a trade is cleared, when the Party Role (452) = Counterparty Firm (17), the Party ID will be populated with the CCP value of the CCP that will clear the trade:

Execution report

Tag 448 PartyID = EMCFNL2AXXX

Further information can be found on Euronext Milan's website.

Cboe Clear Europe reporting

Once trades executed on Euronext Milan are cleared by Cboe Clear Europe, Cboe Clear Europe’s real time, intraday and end of day files will include Euronext Milan activity.

Euronext Milan trades will appear in Cboe Clear Europe’s reporting under the relevant Market Identifier Code (TAG 58 in the FIX messages and TAG 8 in the Client Information File (CIF).

"Europe’s Preferred CCP"

Volume Growth & Facts on Euronext Paris, Amsterdam, Lisbon and Brussels

2019 (full)	31,902
2020 (full)	3,572,947
2021 (full)	8,943,080
2022 (H1)	14,393,296

• Volume increased by 233% in H2 22 vs H1 21
• Market share now 15% (as of June 30th) (Source; Cboe Market Data & Cboe Clear Europe Cleared Transactions)
• Important liquidity providers and investment banks live, ensuring high matching rates and trades sent to Cboe Clear Europe for clearing
• Cross netting with high volume MTF flow, reducing post trade costs and lowering the cost of execution
• Strong pipeline of new liquidity providers and banks in the 2H to grow market share and volume further