Proprietary Trading

The Proprietary Trading team of Equita, carrying out trading activities on its own behalf and offering brokerage services, aims to expand its business further, while maintaining a coherent level of risk with prudent capital management.

The activities carried out are mainly divided into "Directional” trading and “Client-Driven and Market Making” services.


proprietary trading

  • Trading on proprietary account and brokerage of securities
  • Coherent risk attitude and prudent capital management

 

DIRECTIONAL Trading 

  • Directional trading
  • Risk arbitrage & special situations
  • Market marker

client-driven &
market making

  • Specialist operator (specialist)
  • Brokerage

"DIRECTIONAL" TRADING

The so-called “Directional” trading activity is the trading on its own behalf that Equita carries out on the basis of proprietary strategies and which typically include an element of risk. However, this risk is constantly monitored. Generally, the “Directional” trading includes activities like:

  • "Straight" Directional trading – trading in shares, derivatives, bonds and ETFs to implement investment strategies based on fundamental analysis, technical analysis and/or news on issuing companies and/or market-sensitive news;
  • Risk arbitrage & special situations – Assessment – also with the support of appropriate decisional algorithms – of investment opportunities on "relative value” strategies as well as investment opportunities arising from capital transactions and/or other operations or extraordinary events relating to companies such as, for example, capital increases and public purchase and/or exchange offers;
  • Market Maker – Market maker activities on options linked to shares of FTSE MIB index and bonds; for some of these, the Proprietary Trading team undertakes buy and sell proposals on securities and/or indices to support liquidity, respecting the parameters set by the manager and applicable regulatory provisions.

"client-driven" AND "market making" SERVICES

Client-Driven" & "Market Making" services are the trading activities carried out on behalf of clients for which the traded securities pass through Equita’s book, even though they are immediately sold to clients who have requested them, and which do not typically include an element of risk.

Specifically, “Client-Driven” activities can be identified as the direct execution of client orders, whose book balance of Equita at the end of the day is zero; “Market Making” is instead the activity with which Equita undertakes to provide liquidity to the market in bid-ask or bid only orders.  Generally, the “Client-Driven" and "Market Making” trading segment includes the following activities:

  • Specialist – Specialist, on behalf of third parties and for its own account, on bonds and certificates traded on the MOT, EuroTLX, SeDeX and HIMTF platforms, and on shares traded on the MTA and on AIM Italia, with the aim of supporting liquidity, in compliance with the parameters established by the manager and the regulatory provisions applicable to the individual listing markets;
  • Brokerage – Dealing on own account in client orders for debt instruments not admitted for trading on regulated markets, ETFs and equities.