An Italian court dismissed an emergency application on Monday from the state lender CDP that sought to block the reappointment of Milan Stock Exchange CEO Fabrizio Testa, according to informed sources.

The Milan court ruled that the conditions for urgent intervention claimed by CDP were not met, leading to the rejection of its request. The decision removes a key obstacle to Testa securing a new three-year term, which is expected to be formally approved during the Milan Stock Exchange’s shareholder meeting this week.

CDP holds approximately 8.1% of Euronext, the operator of the pan-European stock exchange and the parent company of the Milan Stock Exchange. CDP had previously urged Euronext to consider alternative candidates to Testa and conduct a formal selection process, but Euronext resisted these demands.

Euronext CEO Stéphane Boujnah has publicly expressed support for Testa, praising the "unprecedented performance" of the Milan Stock Exchange since he took leadership in 2021.

This marks the second legal setback for CDP in related proceedings, following a similar rejection by an Amsterdam court. However, CDP is still pursuing a separate lawsuit in Amsterdam, indicating that the dispute over governance of the Milan Stock Exchange is likely to continue.

The Milan Stock Exchange controls MTS, the primary trading platform for Italian government bonds with a total volume of approximately €2.7 trillion, making its leadership a matter of high strategic importance in Italy.