Exchange in no hurry to join Anglo-German alliance

The Irish Stock Exchange (ISE) has no immediate plans to join the merged London/Frankfurt stock exchange.

ISE chief executive Mr Tom Healy said Dublin's plans to use the German Xetra trading platform and its existing use of London's Crest settlement system meant joining the merged exchange was not a priority.

"We don't have to consider a merger right now. That might be something for the future, but as of now, we have access to the main systems and we don't see any need to look closer," Mr Healy said.

"Xetra will be the main system for what will be effectively the main stock market for blue-chips in Europe - and we're in it. And it's reasonable to expect Crest will be part of a European solution as well." Mr Healy said the crucial factor in pan-European equity trading was the creation of a single trading platform. He said he believed the Helsinki bourse would also opt for Xetra. The Irish exchange plans to introduce full electronic trading, based on the Xetra system, by the end of June. It will offer trading in Irish equities and corporate bonds on a special segment of the trading platform.

The Deutsche Borse will be responsible for providing and operating the Xetra system, network infrastructure and software.

The move will go part of the way towards meeting the needs of both domestic and international investors, who have been critical of the pace at which the ISE is introducing electronic settlement.

"Pretty soon, you'll see the Germans, British, Finnish, Austrians, Irish and possibly others trading on Xetra. In practical terms, we'll have a centralised European trading platform. It will be a single market in practice," Mr Healy said.

However, the link-up of London and Frankfurt may force the Irish exchange to rethink its plans to set up a domestic market for technology companies. Under the merger, the Neuer Markt will become the main market for technology companies and effectively incorporate London's Techmark market.

"One option is to go ahead with our own plans, which would envisage Irish technology companies taking joint listings in Dublin and on the Neuer Markt or Nasdaq, or whether we should look for some sort of link-up with the Neuer Markt," Mr Healy said.