Milan Stock Exchange (MIL)

What Is the Milan Stock Exchange (MIL)?

The term Milan Stock Exchange refers to Italy's only stock exchange. The exchange is located in Milan and is known in Italian as the Borsa Italiana. The exchange features a list of prominent Italian listed brands and also serves as a place where investors can trade a variety of securities and other financial instruments.

The exchange, whose history dates back to the early 1800s, became part of the London Stock Exchange (LSE) Group in 2007. In 2021, the LSE Group sold Borsa Italiana, along with the Milan Exchange, to the Euronext Group.

How the Milan Stock Exchange Works

The Milan Stock Exchange is Italy's only stock exchange. It operates under the official name of Borsa Italiana S.p.A. The exchange works to develop its markets, maximize liquidity, and maintain high levels of efficiency and transparency. As such, the exchange outlined formal rules and procedures for listing and issuing companies, as well as rules for intermediaries and traders.

Trading on the exchange takes place in euros. As mentioned above, some of the largest Italian companies trade on the exchange, including Campari, Fiat Chrysler, Ferrari, and Salvatore Ferragamo. Investors can also trade a variety of assets including exchange traded funds (ETFs), bonds, derivatives, and other financial instruments. The exchange’s main indexes are the capitalization-weighted FTSE Italia Star, FTSE Italia Mid Cap, and FTSE All-Share Capped.

Brokers either trade in person at the exchange, or through an electronic trading system that operates in real-time. Trading hours are from 9 a.m. to 5:30 p.m., Monday through Friday for most markets. An opening auction occurs each trading day from 8 a.m. to 9 a.m. during the workweek for most markets as well. Hours vary, though, depending on the type of securities traded, which can be found on the exchange's website.

If you're interested in investing in the Italian market, consider an ETF or an American depositary receipt.

Special Considerations

The exchange provides listing guides as useful tools for potential issuers, financial institutions, and other parties involved in the listing process. In 2003, the exchange introduced a strategic planning guide intended to help companies prepare their analysis and reports to support their application for listing on the exchange.

All companies that list with the exchange pay an admission fee based on their market capitalization. One-time fees must also be paid for placing bonds and other debt securities on the exchange. A publication detailing the fees and requirements for listing and placing trading instruments on the exchange is available directly through the exchange.

History of the Milan Stock Exchange

The Milan Stock Exchange was established in 1808 as Milan's Merchandise Exchange. At that time, the exchange was operated by the country's government. The first share in a public company was listed on the exchange in 1859. In the 1870s, banking and railway companies began joining the exchange and from there, the exchange continued to grow and attract a diversity of issuers.

Electronic trading on the exchange became fully operational in 1994. In 1998, the exchange went private under the official name Borsa Italiana. The Milan Stock Exchange merged with the London Stock Exchange in 2007. This merger created one of the largest exchange groups in Europe. The LSE Group announced it was selling the Milan Stock Exchange to Euronext — the largest stock exchange in Europe — for €4.325 billion. This deal closed in 2021.