ITALY - Borsa Italiana has teamed up with ratings agency Standard & Poor's (S&P) to launch a new equity index.
The S&P/MIB 45 is designed to provide a broader representation of the entire Italian equities market than the existing MIB 30, which is overweighted in financial and industrial stocks.
The S&P/MIB 45 and aims to cover between 70-80% of Italy’s EUR590bn market cap, and becomes active in April.
According to both organisations, the new index will have a sectoral balance that better reflects the Italian market, across broad, large and liquid stocks.
Each of the index constituents will be weighted using an equity-free float adjustment that reflects its overall importance in Italy’s stock market. It is also likely that the S&P/MIB 45 will in due course form the basis of new traded index contracts on Borsa Italiana.
The S&P/MIB 45 will be free float adjusted and have the Global Industry Classification Standard (GICS) applied to each constituent.
Borsa Italiana is S&P’s first alliance with a leading equity exchange in Europe, complementing existing alliances with in Canada, Australia, Japan and the US.
Over the last year, S&P has made several significant moves into the European index marketplace beginning with the creation of the S&P Europe 350 and S&P Europe 350 Sector Indices.
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