Trintech and Conduit show no signs of worry as Neuer Markt to close

One of the two Irish companies affected by the demise of the Neuer Markt in Germany plans to retain a Frankfurt listing, while the other is considering its options.

Software group Trintech said it will join the "Prime Standard" segment of the main Frankfurt market, which will also include the 30 blue-chip stocks on the DAX.

Directory assistance group Conduit, which also has a listing on the Irish Stock Exchange, said it is considering its options.

The five-year old Neuer Markt was once seen as Europe's answer to the US Nasdaq. But the collapse of the dotcom bubble, allied to a series of scandals, has seen its flagship index collapse in value by 95 per cent since March 2000.

It will be abolished from next year and companies will transfer to the main Frankfurt market, which will be divided into two segments.

Companies in the "Domestic Standard" segment will have less stringent requirements than those in the Prime Standard segment.

Requirements for companies in the Prime Standard will include quarterly earnings reports, international accounting standards and annual meetings with analysts.

Trintech's chief financial officer, Mr Paul Byrne, said the company was already meeting the Prime Standard obligations through its listing on the Nasdaq.

With 50 per cent of Trintech held by European investors, including a large number of German shareholders, it is keen to retain a Frankfurt presence alongside its US listing.

Conduit chief executive Mr Liam Young said the closure of the Neuer Markt would have "no serious repercussions on the company as it is still listed in Ireland".

Meanwhile, the Irish Stock Exchange (ISE) said yesterday that an EU decision to scrap rules forcing investors to buy and sell shares solely through stock exchanges would have no impact on the Irish market.

ISE chief executive Mr Tom Healy said the regulations would only have an impact on exchanges with an effective monopoly such as France, Italy and Spain where major trades have to go through an exchange.

"It's irrelevant to us," he said, as there was no requirement on Irish investors to deal through the ISE.