WHAT IS THE MIC
MIC (Collateralized Interbank Market) is a segment of the e-MID platform fully dedicated to collateralized deposits with the guarantee of the Bank of Italy.
Its innovative trading model is based on:
- collateralization of deals
- anonymous trading
- partial mutual participation in the credit risk
- guarantee of the Bank of Italy.
MIC succesfully started its activity on 2nd February 2009 and will remain active for all deposits with maturity date to 31st December 2010.
WHY TO JOIN
Borrowers’ benefits
Complete anonymity of both trading and settlement allows to avoid possible reputational risks. Illiquid or non ECB eligible assets may also be effectively used as collateral.
Lenders’ benefits
On the MIC it is possible to lend funds avoiding credit and liquidity risks thanks to the guarantee scheme and the prompt intervention of the Bank of Italy in case of fail, with a very limited capital absorption. Loans on MIC can be used in the security lending transactions with the Bank of Italy.
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