What it means for the private investor

The Irish stock exchange in association with other participating states' exchanges, will take a lead role in the introduction of the euro, by means of a "Big Bang" approach to dealings on European securities markets. This means that stock markets will be one of the first areas of the economy where the public see a real and complete move to the euro. From January 4th, 1999 all trading in equities, bonds and other securities on the Irish stock exchange, which was previously done in Irish pounds, will be in euros.

What Do These Developments Mean For You?

1. What affect will the Euro have on my dealings in securities listed on the Irish stock exchange?

Irish equities and bonds listed on the Irish stock exchange will be quoted in euros from January 4th, the first business day in 1999. If you want to buy or sell equities or bonds from any member-state stockbroking firm, the quoted price will be in euros.

2. Does this mean I can no longer use Irish pounds when I deal with an Irish stockbroker?

No. Your broker will continue to accept/make payments in Irish pounds as well as euros until you get a euro bank account or until the Irish pound is withdrawn in January 2002.

3. What will happen to my existing shareholdings?

Existing share certificates will remain valid after January 4th, 1999 and can be delivered in full satisfaction of a deal done in euros. This will remain the case until you are notified by the listed company in question of the re-denomination of its share capital from Irish pounds to euro and of consequent changes, if any, to existing share certificates.

4. What about shares held in a nominee account?

The administrative aspects of processing your sale or purchase, and their subsequent settlement, will be handled as part of the nominee service. Similarly, any action to be taken at a later stage resulting from listed companies re-denominating their shares from Irish pounds to euros (see Question 3 above) will be done by your nominee service.

5. Will documents such as contract notes, stock transfer forms and statements of account be changed in content and format?

Stock Transfer Forms will not need to change for euro dealing. Contract notes and statements will change to reflect the euro basis of trading in securities. The exact approach of stockbroking firms will vary from showing all details in euros with just a note of the Irish pound equivalent for the total euro amount, to showing euro trades converted to Irish pounds for each transaction with other details and totals in Irish pounds. All documents will be in euros from the beginning of 2002. Until then you will be able to buy and sell in Irish pounds or euros.

6. How will Government bonds be affected?

From January 4th, 1999 all outstanding Government bonds, which were originally issued in Irish pounds, will be re-denominated to euro and they will be quoted, traded and settled in euros.

During the transition period - up to December 31st, 2001, a facility for payment of coupons and redemption of capital in Irish pounds will be available on request from the National Treasury Management Agency.

7. What happens if I have bought securities before December 31st, 1998 for settlement after that date?

Your broker will accept either Irish pounds or euros as payment for purchases and will pay you in either euros or pounds for sales.

8. What happens if I want to deal in securities listed in a state which is not in the euro zone?

The most likely examples here are Britain (London Stock Exchange) and the US (New York Stock Exchange, Nasdaq, etc).

These securities will be dealt as they are at present in the currency in which they are quoted (US dollar or sterling). If you immediately opt to trade on a euro trading account with your broker then such transactions will be translated to euros; otherwise you can settle in Irish pounds unless you are settling the transaction in the quoted currency.

9. Will brokers' charges be increased on changeover to the euro?

No. They may be converted to the euro equivalent amount but they will not be increased just because of the euro changeover. This of course is subject to normal and ongoing review of the level of such charges by each individual firm and as agreed with clients of that firm.

Source: Irish Stock Exchange