Trading at Closing Auction price

On Monday, September 30^th 2013, together with the start of the new Release 8 of the Millennium Exchange platform for the Borsa Italiana cash markets, the new Closing Price Crossing session (CPX) will be introduced for MTA, the Italian main equity market. The CPX phase will take place immediately following the generation of an uncrossing trade at the Closing Auction, allowing participants a further opportunity to execute business at the day’s closing price.

The CPX session for instruments traded on MTA will start just after the end of the Closing Auction (at a random second between 17:30 and 17:31, due to the random closing procedure of the Closing Auction).

If no closing auction price has been determined, the CPX session will not occur.

The ending times for the CPX session are the following:

• if the instrument does not enter into any extension of the Closing Auction, the CPX will end at 17:40:00
• if the instrument enters into an extension of the Closing Auction, the CPX will end at 17:46:00

The CPX session will be divided in two sub-phases:

• for the first four minutes, it will be possible only to enter, modify and cancel orders, but no trade execution will take place
• after the end of the first four minutes, a continuous trading phase will start. In such phase, execution will be possible at the closing price only, based on time-priority rule

Unexecuted orders at the end of the Closing Auction, compatibly with the specified order parameters, will be transferred to the new CPX phase. Since execution in the CPX phase is possible at the closing price only, unexecuted limit orders will be executable only in case their limit price coincides with the closing auction price, or the execution at the closing price is offering better price conditions.

Jointly with the introduction of the new phase, a new time validity parameter “CPX”, allowing to insert orders for execution during the CPX phase only, will be available during the trading day.