Irish Stock Exchange
Overview
 
The Irish Stock Exchange (ISE) is Ireland
Ireland
Ireland is an island to the northwest of continental Europe. It is the third-largest island in Europe and the twentieth-largest island on Earth...

's only stock exchange
Stock exchange
A stock exchange is an entity that provides services for stock brokers and traders to trade stocks, bonds, and other securities. Stock exchanges also provide facilities for issue and redemption of securities and other financial instruments, and capital events including the payment of income and...

 and has been in existence since 1793. It is an Irish private company limited by guarantee. It was first recognised by legislation in 1799 when the Irish Parliament passed the Stock Exchange (Dublin) Act. At different periods in its history, the ISE included a number of regional exchanges, including the Cork
Cork (city)
Cork is the second largest city in the Republic of Ireland and the island of Ireland's third most populous city. It is the principal city and administrative centre of County Cork and the largest city in the province of Munster. Cork has a population of 119,418, while the addition of the suburban...

 and Dublin exchanges.
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History

The Irish Stock Exchange (ISE) is Ireland
Ireland
Ireland is an island to the northwest of continental Europe. It is the third-largest island in Europe and the twentieth-largest island on Earth...

's only stock exchange
Stock exchange
A stock exchange is an entity that provides services for stock brokers and traders to trade stocks, bonds, and other securities. Stock exchanges also provide facilities for issue and redemption of securities and other financial instruments, and capital events including the payment of income and...

 and has been in existence since 1793. It is an Irish private company limited by guarantee. It was first recognised by legislation in 1799 when the Irish Parliament passed the Stock Exchange (Dublin) Act. At different periods in its history, the ISE included a number of regional exchanges, including the Cork
Cork (city)
Cork is the second largest city in the Republic of Ireland and the island of Ireland's third most populous city. It is the principal city and administrative centre of County Cork and the largest city in the province of Munster. Cork has a population of 119,418, while the addition of the suburban...

 and Dublin exchanges. In 1973, the Irish exchange merged with the other British
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

 and Irish stock exchanges becoming part of the International Stock Exchange of Great Britain and Ireland (now called the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...

).Between 1973 and 1986 there were no new company listings.

In 1995, it became independent again and since then has expanded internationally and established itself as a global listing centre for international fund and debt securities.

Markets

The Irish Stock Exchange operates three markets:

The Main Securities Market (MSM), the principal market for Irish and overseas companies, which admits a wide range of security types such as shares, bonds and funds to listing and trading. The Main Securities Market is a regulated market as defined by Markets in Financial Instruments Directive (MiFID). It is the principal market of the ISE for larger, more established companies - Irish and international - from a broad range of industry sectors including financial services, building, oil and gas, utilities and food.

The Enterprise Securities Market (ESM), an equity market designed for growth companies. The ESM is an exchange regulated market and multi-lateral trading facility (MTF) as defined by MiFID. It is the ISE market for smaller, growth companies and has been specifically designed to meet the funding needs of companies at earlier stages in their development.

The Global Exchange Market (GEM), a specialist debt market for professional investors. GEM is an Exchange regulated market and MTF as defined by MiFID.

Current Operations

The exchange is owned by Irish Stockbrokers and the country currently has two large, and half a dozen medium-sized, brokerages but most observers believe this cannot continue indefinitely, as sales from trading commissions and fees from corporate deals tumble because of the recession.

On 6 June 2000, the ISE closed its trading floor in Anglesea Street ( a listed building), Dublin 2, and switched to an electronic trading platform
Electronic trading platform
In finance, an Electronic trading platform is a computer system that can be used to place orders for financial products over a network with a financial intermediary. This includes products such as shares, bonds, currencies, commodities and derivatives with a financial intermediary, such as a...

 called ISE Xetra
Xetra (trading system)
Xetra is a worldwide electronic securities trading system based in Frankfurt, Germany. It was created for the Frankfurt Stock Exchange and launched in November, 1997. It is operated by Deutsche Börse....

 which has enabled it to expand its membership base to include international banks and)used by the Deutsche Börse Group. Trading on the ISE is settled via the CREST
CREST
CREST is the Central Securities Depository for the U.K., Republic of Ireland, Isle of Man and Jersey equities and UK gilts, named after its securities settlement system, CREST. The project was launched in 1993, following the Taurus fiasco, and the company was founded in 1996. CREST allows...

 settlement system which is operated by Euroclear
Euroclear
Euroclear is a user owned and governed Brussels, Belgium based financial services company that specializes in the settlement of securities transactions as well as the safekeeping and asset servicing of these securities. It was founded in 1968 as part of J.P...

 (UK and Ireland) and cleared by Eurex
Eurex
Eurex is one of the world's leading derivatives exchanges, providing European benchmark derivatives featuring open and low-cost electronic access globally...

 Clearing AG. It operates three markets – the Main Securities Market, the principal market for Irish and overseas companies; the Enterprise Securities Market (ESM), an equity market designed for growth companies; and the Global Exchange Market (GEM), a specialist debt market for professional investors.

The published index of shares is known as the Irish Stock Exchange Quotient or ISEQ Overall Index. Other indexes of the exchange include the ISEQ ESM Index, the ISEQ 20
ISEQ 20
The ISEQ 20 is a benchmark stock market index composed of companies that trade on the Irish Stock Exchange. The index comprises the 20 companies with the highest trading volume and market capitalization contained within the ISEQ Overall Index. The index was started on 31 December 2004 at a base of...

, the ISEQ General, ISEQ SmallCap, and ISEQ Financial. The ISE also has two other ISEQ 20 based indices, the ISEQ 20 Capped Index and the ISEQ 20 Leveraged Strategy Index.

The exchange is regulated by the Central Bank of Ireland under the Markets in Financial Instruments Regulations (MiFID
MiFID
The Markets in Financial Instruments Directive as subsequently amended is a European Union law that provides harmonised regulation for investment services across the 30 member states of the European Economic Area...

) and is a member of the World Federation of Exchanges
World Federation of Exchanges
The World Federation of Exchanges , formerly FIBV - Federation Internationale des Bourses de Valeurs , is an international organization for securities and derivative markets such as stock exchanges....

 and the Federation of European Stock Exchanges.

Just two companies, Ryanair
Ryanair
Ryanair is an Irish low-cost airline. Its head office is at Dublin Airport and its primary operational bases at Dublin Airport and London Stansted Airport....

 and CRH plc
CRH plc
CRH plc, , is an Irish building material group, formerly called Cement-Roadstone Holdings plc. It is quoted on the Official Lists of the Irish Stock Exchange and London Stock Exchange.-History:...

, account for the bulk of the day-to-day share dealing on the exchange since the collapse of Irish banking stocks. Trading volumes on the exchange in 2011 are about a quarter of the 2007 peak.

Criticism

Two reports of an investigation into the "wholly inappropriate sale of perpetual bonds" by Davy Stockbrokers
Davy Stockbrokers
Davy is Ireland's largest stockbroker, wealth manager and financial advisor and has offices in Dublin, Belfast, Cork, Galway and London. Davy offer a range of services to private clients, small businesses, corporations and institutional investors....

 to credit unions failed to involve any of the credit unions affected, leaving them "in the dark and powerless to add any value to the findings of this investigation”. The ISE, who have Davy as one of its largest shareholders, then declined to give them access to the reports. The Chairman of one the Credit Union's who suffered large losses told his members ‘‘The failure to publish the reports is to place the complaints process in a shroud of secrecy. Such a failure of openness, transparency and fairness can only serve to undermine confidence in the complaints process, forcing those with grievances into the courts. Such a course of action is not in the interest of any of the stakeholders.”

The number of equity companies quoted is dwindling as companies go broke, de-list or move overseas but their lucrative fund and debt securities listings could prove attractive to other exchanges, although a parliamentary committee in December 2009 was told that they do not intend to merge with a larger rival.

In April 2010, the chief executive of Financial Regulation at the Central Bank of Ireland told the same committee that "senior management of the exchange should step up to the plate" after failing to help charities, credit unions and rich individuals who received letters informing them that many investments made by stockbrokers over the past decade are now worthless.

It employs 92 people who are paid an average of €98,000 when pensions and employer contributions are taken into account.

List of companies listed on the ISE


External links


  • http://www.ise.ie/Hidden_Loc/ISE%27s-Delegated-Activities-from-the-Central-Bank-of-Ireland.html
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