Article 4.4.1

1.       Trading in the electronic bond market (MOT) shall be in minimum lots or multiples thereof of bonds other than convertible bonds, government securities, Eurobonds, foreign bonds, asset-backed securities (ABS) and other debt securities. Borsa Italiana shall establish the minimum lots tradable, reconciling the need for the market to operate effectively, for investors to have easy access to it and for the execution of orders to be cost efficient.

2.       Purchase and sale contracts having as their subject the financial instruments referred to in paragraph 1 shall be checked by the service referred to in Article 5.1.1 and settled via the settlement system referred to in Article 69 of the Consolidated Law on Finance or via other foreign settlement systems. The latter must be subject in their home country to supervision equivalent to that to which systems referred to in Article 69 of the Consolidated Law on Finance are subject. In the case of securities that are not fungible, contracts shall be settled exclusively via the gross settlement system:

Purchase and sale contracts shall be settled:

a)      on the third trading day following their conclusion where they refer to bonds and government securities other than Italian Treasury bills;

b)      on the second trading day following their conclusion where they refer to Italian Treasury bills;

c)      on the third trading day following their conclusion where they refer to Eurobonds, bonds of foreign issuers or ABSs.

The settlement time limits shall be determined according to the calendar defined by Borsa Italiana where the settlement system referred to in Article 69 of the Consolidated Law on Finance is used, and according to the “TARGET” calendar otherwise. Borsa Italiana shall specify in the Notice establishing the date of the start of trading for each financial instrument the settlement system that will be used.

3.       Borsa Italiana may specify in the Instructions the rules that shall apply where the sale and purchase contracts are not settled within the time limit established in paragraph 2. The entry into force of such rules shall be subject to Consob granting its explicit consent.

4.       Borsa Italiana may specify in the Notice containing the admission decision a different settlement time limit for financial instruments admitted to trading pursuant to Article 2.1.2, paragraph 7(a), to take account of the characteristics of the reference European regulated market.