The Global Markets area offers Intermonte clients services for all asset classes, shares, bonds, derivatives, ETFs, currencies and commodities, supporting investor decisions with research of proven quality. Our activities are targeted at Italian and foreign institutional investors and ongoing relationships are maintained with over 450 investors worldwide.
Intermonte has one of the largest trading floors in Italy, comprising 50 professional traders specialised in various assets classes and capable of offering strategies to support all kinds of clients in their strategic decisions and in structuring highly customised products to efficiently match all the requirements of our clientele.
- Client-driven activities: sales & trading, electronic trading, market-making, derivatives & special situations, ETFs, fixed income
- Proprietary strategies aimed at pursuing prudent capital management and an appropriate return: volatility, directional and algorithmic trading
Electronic Trading and Execution Services
Within Global Markets, the Electronic Trading and Execution Services team provides market access, opening up a wide range of investment opportunities in diverse asset classes, in response to specific client requirements.
Intermonte provides a range of technologically advanced platforms and interfaces for high-performance, reduced cost market access. Thanks to its dedicated back office, Intermonte handles all post-trading and settlement activities with the necessary diligence and attention to detail.
The market-making team is a leader in the listed equity derivatives business where it operates as a Primary Market Maker to guarantee ongoing market liquidity and provide competitive pricing and spreads to institutional clients.
Launched in 2011, the activity consists in continuously quoting bid and ask prices on almost all stocks on the FTSE MIB and on the main mid-caps for a total of 52 underlying stocks and more than 4,700 instruments listed on the IDEM segment (American options, European options, and stock futures). Since the last quarter of 2019, Intermonte has expanded the range of derivative products it offers thanks to the addition of the main European securities listed on the Eurex market.
Thanks to the large number of Italian and foreign institutional client relationships and the flows it receives daily, the market making desk can offer highly competitive pricing for significant quantities with tighter bid-ask spreads.
As proof of clients’ appreciation of the performance of the market-making team, Intermonte has come top of the Assosim volume ranking for proprietary trading of Italian single stock options in Italy every year since 2013, with the sole exception of 2018, when it came second.
Derivatives & Special Situations
The Derivatives and Special Situations team brokers listed derivatives on Italian and foreign equity, baskets options on Italian indices on behalf of Italian and foreign institutional clients; it offers day-to-day consultancy and brokerage for arbitrage and special situations such as rights issues, takeover offers and mergers, volatility analysis in diverse asset classes (i.e. implicit volatility, skews, term structure) and bespoke structuring of option strategies to satisfy clients’ most complex requirements.
Through its team of experts, Intermonte offers a range of execution solutions including telephonic, proprietary algorithms, or direct market access, with competitive pricing of futures and options, whether listed on principal markets or traded over-the-counter.
Through its dedicated team, Intermonte offers its clients brokerage on ETF / ETC, guaranteeing access to all ETP listed on regulated European markets and to the primary market through NAV trading methods.
Trading methods match investors’ most diverse requirements including on / off exchange, or in response to RFQs through the main MTFs (MiFID II).
Collaboration between the ETF trading desk and the in-house macro research team makes it possible to provide clients with a professional and timely service to support clients in the creation and implementation of investment strategies that bring together deep market analysis and careful selection of the most suitable investment instruments available on the market.
Debt securities (fixed income) also come under Global Markets where Intermonte is a leader in placement in brokerage of bonds, providing clients with coverage of all phases of fixed income activities, from primary market placement through brokerage of Italian and foreign corporate and government bonds on the secondary market, to market making.
Advisory on structuring and placement of corporate bonds, especially convertible bonds or quasi-equity, completes the Intermonte offering in order to support the client at all stages of assessing investment opportunities.
Intermonte carries out proprietary brokerage and trading for prudent capital management and adequate returns, in line with the investment limits imposed by risk management. Over the years, Intermonte has developed a number of highly value accretive proprietary strategies that can be summarised as follows:
Volatility trading to capture temporary mismatches between curves and / or the term structure of underlying assets, be these single stocks or indices, tightly correlated, betting on a reversion to the mean over the long term.
Risk arbitrage & special situations: with the aim of seizing investment opportunities resulting from capital and / or extraordinary operations (e.g. issuing of convertible bonds, rights issues, etc.).
Algorithmic trading: pursued via proprietary algorithms based on standard and innovative quantitative analyses aimed at capturing market trends such as sustainability, structural changes in energy sources, technological innovations, aging populations or resource scarcity.
Directional trading: taking positions on the basis of fundamental analysis, technical analysis and price-sensitive news using shares, derivatives, bonds and ETF.