new segmentation MCW
Press release
Borsa Italiana Approves New Segmentation
of the Covered Warrant Market
The Board of Borsa Italiana, met on April 7 to approve some regulatory changes to allow a new segmentation of MCW (Market Covered Warrant), the securitised derivatives market.
The new segmentation, which will not impact on the previous trading modalities, will classify the securitised derivatives in sectors according to their features and investment type.
The aim of the new segmentation is to ease the identification of the financial instruments listed. The development is to increase transparency and usability of the information for the final investor who will be able to decide more easily where to address his investment strategies.
The new segments are the following:
- PLAIN VANILLA COVERED WARRANTS
- These are covered warrants based on a call or put option
- STRUCTURED/EXOTIC COVERED WARRANTS
- These are covered warrants whose main feature is a combination of options
- LEVERAGE CERTIFICATES
- These are certificates tracking an underlying activity allowing a holder to participate to its performance with leverage
- INVESTMENT CERTIFICATES
- Includes certificates tracking an underlying activity without leverage and
- certificates tracking an underlying activity with one or more accessory options
Milan, 8 April 2004