Italian Derivatives Market

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DEFINITION of 'Italian Derivatives Market'

A derivatives exchange headquartered in Milan, Italy. The Italian Derivatives Market is a part of the Borsa Italiana, which is owned by the London Stock Exchange. The IDEM allows trades of futures contracts on indices, equities and commodities such as electricity, as well as mini contracts. As many derivatives exchange across the world, the IDEM has seen a steady increase in volume over the past years.

INVESTOPEDIA EXPLAINS'Italian Derivatives Market'

The exchange dates back to the early 1800s, when it was created to replace the former Borsa di Comercio. In 2000 the IDEM, along with the Italian Stock Exchange board, went from a government controlled entity to the privately held Borsa Italia, which is responsible for the exchanges' management.

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RELATED FAQS
  1. How do futures contracts roll over?

    Traders roll over futures contracts to switch from the front month contract that is close to expiration to another contract ... Read Full Answer >>
  2. How are American Depository Receipts (ADRs) priced?

    The price of an American depositary receipt (ADR) is determined by the bank or other financial institution that issues it. ... Read Full Answer >>
  3. Why do companies enter into futures contracts?

    Different types of companies may enter into futures contracts for different purposes. The most common reason is to hedge ... Read Full Answer >>
  4. What does a futures contract cost?

    The value of a futures contract is derived from the cash value of the underlying asset. While a futures contract may have ... Read Full Answer >>
  5. How are American Depository Receipts (ADRs) exchanged?

    American depositary receipts (ADRs) are bought and sold on regular U.S. stock exchanges, either in the over-the-counter market ... Read Full Answer >>
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    The primary risks associated with trading derivatives are market, counterparty, liquidity and interconnection risks. Derivatives ... Read Full Answer >>

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