Fall-off in fund and debt listing hits ISE

THE IRISH Stock Exchange (ISE) has seen a fall-off in its funds and specialist debt listing business since the start of the year. The level of debt listings declined by 60 per cent in the first half of 2008 compared with the same period last year, while fund listings have declined by 49 per cent.

The ISE, now the world's largest exchange for the listing of such vehicles, has seen business fall due to the credit crunch. The slowdown in business is likely to bring revenues back to 2006 levels if the trend continues over the rest of the year.

In 2006 the ISE had revenues of €25.5 million and reported a profit of €21.2 million, including investment income of €11 million.

Debt listings, which include securitisation vehicles and commercial paper programmes, have been particularly hit by the credit crisis, with the number of programme and non-programme vehicles listing on the exchange falling from 552 for the first half of 2007, to 220 for the first half of 2008.

"Given the highly internationalised nature of the ISE debt and funds business we have been affected by the current difficult market conditions," said Gerard Scully, director of international primary markets at the ISE.

He pointed to the fact that global issuance in structured debt has dropped by 90 per cent and said that the decline in debt listings at the ISE has been counterbalanced to some extent by the listing of new euro commercial paper programmes, covered debt programmes and straight debt programmes.

The volume of funds listing on the exchange has fallen by 49 per cent. In the first half of 2007, 419 new funds and sub-funds listed on the exchange, compared to just 213 in the first six months of 2008.

The listings business has boomed over the past number of years and is now the ISE's main source of income.

There are 10 firms offering listing services on the exchange, including NCB Stockbrokers, Davy Stockbrokers and Grant Thornton, and these firms can also be expected to suffer from the slowdown.