FINEX is determined that it will become more identified as a Dublin - and European - futures exchange.

While it has been trading in the IFSC for several years, it is still largely unknown in the wider financial community.

However, if new managing director Mr Colman Candy has his way all that would change. Mr Candy is hoping to attract large numbers of sole traders or "locals" to the currency futures exchange. This would build its own momentum he explains. At the same time he is hoping to attract significant new business from the Irish brokers and banks.

From launching an Irish equity index future to possibly relaunching the Irish Futures and Options Exchange (IFOX) - which traded, Irish bonds and interest rate futures - Mr Candy is anxious to become more identified with Dublin.

"We want to become a European and Irish operation rather than a European floor of a New York exchange," he said.

At the moment, the contracts on offer at Finex are used primarily by US hedge fund and investment mangers. However, the volume of business from London and European is also growing. Bank of Ireland, AIB, Gandon and FBD are the main Irish institutions trading on the market, along with three US institutions and two Europeans.

The advantage of Finex is that it combines elements of spot currency trading with a traditional futures market. As a result the market has the liquidity of the cash market and the spread or difference between the buy and sell rate, can be much narrower than in traditional markets.

Essentially, the market will quote a price equivalent to the cash rate as well as any perceived interest rate risk. Hence if a currency is expected to rise because of rate speculation its forward price will be more expensive than the cash price and the other way around if rates are expected to fall.

In Finex, prices can be made on the floor of the pit, but the traders also carry phones so they can go to their own institution and get a quote.

The person asking for the quote can then take the highest buy bid price and the lowest offer price, hence a narrows margin than could be got form many banks.

Mr Candy is also very keen to attract "locals" to the market. There are already 12 individuals on the floor in the exchange trading on their own account. Many of these are former currency dealers for the larger banks who are keen to set up on their own.

Mr Candy said he expects a number of Dublin bond traders to come over in the run up to monetary union when the volume of bond liquidity is likely to drop off dramatically.

These people are likely to be attracted to an exchange where the volumes should grow.

There is already a BES scheme run by Gandon as well as tax breaks for Irish taxpayers wishing to set up their own company to trade on Finex.

The Gandon fund has not yet been allocated to the companies but has raised £1 million. A maximum of £100,000 can be paid to any one company, although some will receive less, according to Mr David Carroll, head of marketing at Gandon.

But there are a number of Irish people living in New York who have applied for funding to return here.

The population in Finex is multi national. Only about 60 per cent of the traders are Irish, many others are from the US but continentals are also moving to Ireland to trade on the exchange.