Borsa Italiana Paves the Way for ETFs


Borsa Italiana, the Milan-based stock exchange, announced that it is in at least the planning stages of a move to alter its own regulations to permit the launch of Italy's first exchange-traded funds (ETFs).

"We are preparing a regulation change to allow ETFs, and the changes are likely to be implemented in the beginning of 2001," Francisco Cannelli, head of the regulation department, told eFinancial News.

"There is a lot of interest in these types of products in Italy. From the international scene we have also seen an increase in ETFs and we want to be prepared and offer this service to our customers as well," Cannelli added.

State Street Global Advisors (SSgA) recently announced that it has entered into a license agreement with MSCI to launch exchange-traded funds in Europe based on MSCI indexes. The new SSgA ETFs will be focused on European sectors, although SSgA said in its earlier announcement that there may be some country-specific ETFs included in the new offerings.

When asked about the development in Italy, a spokesperson from SSgA commented, "Although SSgA is looking at all significant exchanges within Europe, it would not be prudent to comment further at this time."