Single Volume Cap
From October 2025, the volume cap mechanism that is applicable to the shares and ETFs traded on Borsa Italiana's market moved from the "Double Volume Cap Mechanism" (DVC) to the current "Single Volume Cap Mechanism" (VCM), as a consequence of the changes introduced by the Markets in Financial Instruments Regulation Review (MiFIR Review).
Single Volume Cap Market Notices
The new VCM limits the percentage of trading volumes executed through functionalities under the "reference Price Waiver" (MiFIR Art.4(1)(a)) to 7%, compared total volumes executed on EU trading venues in the last 12 months. If this threashold is exceeded, trading venues must suspend the use of these trading functionalities for 3 months. The VCM is applicable at he level of an individual financial instrument.
As concerns Borsa Italiana, the following trading functionalities can be suspended:
- "Mid-point" orders (with the exception of ‘Sweep’ orders) with size below the "pre-trade Large-In-Scale" threshold: These orders will be rejected automatically at order entry level. Sweep orders, once accepted, will be immediately directed to the Central Order Book, without possibility to match at the Mid-point
The list of the suspended instrument in the UE due to the VCM is published by ESMA on a quarterly basis, in January, April, July and October.
Following the communications from ESMA, Euronext is publishing the list of the suspended instruments for its markets, and the related suspension period, at the following link: Euronext - Single Volume Cap
Since the possibility to enter Mid-Point orders is currently available only for the instruments traded on Euronext Milan (MIC: MTAA) and Euronext Growth Milan (MIC: EXGM), potential SVCs triggered by ESMA on the instruments traded on Global Equity Market (MIC: BGEM), Trading After Hours (MIC: MTAH) and EuroTLX (MIC: ETLX) do not have any impact on the trading functionalities that are available for these instruments.
- Borsa Italiana Market Notice #45945, dated 13 October 2025:
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