Temex.it SSO

Pursuant to Article 78.2b) of Legislative Decree 58/1998 Consob has prohibited the organized trading of financial instruments that are not listed and not widely distributed among the public on the alternative trading system known as "Temex.it SSO", managed by Temex s.p.a. (Resolution no. 14849 of 23 December 2004).

It has emerged in fact that this system:

• does not respect always the minimum liquidity requirements for the admission to trading of shares that are neither listed nor widely distributed among the public and therefore does not preclude the trading of insufficiently liquid financial instruments, thus putting the regular functioning of the system and the correct formation of prices at risk;
• provides for the admission to trading of financial instruments issued by companies that did not have their accounts audited for the financial year preceding the admission request, thereby depriving investors of the information necessary for the assessment of the issuer, and consequently of the possibility of making an informed judgment on the securities being offered;
• does not control the fulfilment of the requirements for admission to trading, in as much as the system does not have any mechanism aimed at avoiding the trading of securities of issuers that lack these requirements.

The Commission therefore deemed in respect of securities that are neither listed nor widely distributed that Temex.it SSO does not meet the basic transparency and regular operational requirements that must be an integral part of any system of alternative trading of financial instruments.

(In Consob Informa n. 50/2004 - 27 December 2004)