040212_new derivatives

The Borsa Italiana Board of Directors, sitting today, has approved various changes to its Market Instructions that will permit the issue of derivative products on the S&P/MIB index to be admitted to IDEM, the Italian Derivatives Market.

The resolution takes effect from 22 March 2004, when it will be possible for authorised issuers to launch futures and options contracts on the S&P/MIB index. These new index contracts will replace those currently quoted on the MIB30 index.

The first negotiable maturity date for the new contract will be September, the only month when both current and new contracts will co-exist. From 20 September 2004, only contracts having the new S&P/MIB index as their underlying index will be negotiable.

Commenting on the development, Raffaele Jerusalmi, Executive Director of Markets at Borsa Italiana, said: "The launch of derivative products on the S&P/MIB index is an extremely important event in our partnership project with Standard & Poor's, and will have a decisive role in the ever-increasing internationalisation of our market. Participants have responded warmly to the S&P/MIB index that we launched in June 2003 and based on the feedback we have had we are sure they will welcome the addition of futures and options contracts to the S&P/MIB index cash market" he added.

The following new contracts in particular will be traded:

• a futures contract on S&P/MIB
• a minifutures contract on S&P/MIB
• an option contract on S&P/MIB

The contractual specifications for the new products are identical to those of the products they will be replacing on the MIB30 index.

Steps are being taken to facilitate an orderly transition from contracts on the MIB30 index to the S&P/MIB index. By allowing issuers to negotiate combinations between the old and new indices, a spread between the two contracts will be quoted in the market. This action will enable participants to roll their positions over from MIB30 to S&P/MIB contracts gradually and sustain an orderly transition in terms of liquidity.

As from 20 September 2004, no derivatives contracts will be permitted to be traded on the MIB30 index.

As always, the changes are subject to Consob authorisation.

Attached: timetable for introduction of new contracts and contractual specifications

Milan, 12 February 2004