ISE boss predicts exchanges link-up

THE Irish Stock Exchange (ISE) is more likely to be involved in partnership agreements than be taken over by a bigger player as European markets consolidate, its chief executive said yesterday.

ISE chief executive Tom Healy said the ISE, which recorded a 50% leap in equity turnover last year, would demutualise this year to "tidy" the structure.

Under demutualisation, the ISE would change from a corporation owned by its members to a company limited by shares.

Exchanges like Deutsche Boerse and the London Stock Exchange (LSE) have demutualised in recent years in preparation for a public listing but Healy said the ISE was not considering a flotation.

"We don't need the money. We don't have a problem with corporate governance or our board structure so we're not being pushed towards that.

"What I think is more likely to happen is that we will either be taken over or merge in with a big group ... or, and this is more likely, that there will increasingly be arrangements between groups of stock exchanges to share technology, for example," he said.

Deutsche Boerse operates the ISE's electronic trading system. Last year, the two companies agreed to extend their Xetra agreement.

Healy said the ISE had not received any takeover approaches.

The interest in ISE comes as Deutsche Boerse, Euronext and the LSE hit new peaks last week as investors bet sector consolidation would happen soon.

Healy said the ISE's main focus this year would be to encourage more firms to list on the exchange and expects most to list on its new mid-cap market, the Irish Enterprise Exchange, modelled on London's Alternative Investment Market (AIM).