IRISH STOCK Exchange (ISE) chief executive Deirdre Somers has welcomed the departure of Jim Flavin from DCC to the extent that it "brings closure" to speculation on the matter, but declined to say if it was appropriate for him to remain executive chairman for as long as he did. Ms Somers, who has run the exchange since last July, also said that the owners of contracts for difference (CFDs) should be obliged, in the same way as the holders of common shares, to declare their stake in a firm once it is acquired.
On Mr Flavin's resignation from DCC on Tuesday after a new legal manoeuvre by corporate enforcer Paul Appleby, Ms Somers said it would be inappropriate for her to make a public statement on a matter that the exchange investigated.
"What I am primarily concerned about is the perception of this market and the integrity of this market, and therefore to the extent to which the resignation yesterday brings closure to a matter that has led to protracted debate and speculation in the market, then that is a good thing."
On CFDs, derivative instruments that enable investors to take positions in companies without declaring their stake, she said the rules should be changed as soon as possible and noted that the financial regulator was already examining that question.
"Owners of shares are subject to very clear transparency requirements around who owns those shares, what is the holding of those shares, and when they're building a stake it's very obvious. None of those apply to CFDs and they should."
She said the ISE had not ruled out participation in the consolidation of international stock exchanges. However, she said a reconfiguration of the ownership of the ISE, which is jointly controlled by seven Irish stockbrokers, was "nowhere near a priority" at the moment.
"Any alliances going forward that the stock exchange will consider we will do hopefully from a position of control, and we will do it where we believe that it complements what we want to do and it delivers a dynamic or a synergy that we can't deliver on our own."
Asked about the sharp fall in Irish shares since the peak reached in February 2007, Ms Somers said it would not be appropriate for her to "call the market" in any way.
However, she noted "a very strongly-held belief that there is an Irish impact at the moment that has nothing to do with the companies themselves".
She wants to develop the ISE's international business and improve the standing of its brand in the domestic market.
DCC declined to say if it had agreed a severance deal with Mr Flavin, whose overall pay in the year to March 2007 was €1.52 million. His current one-year contract was scheduled to run to July.
Taking stock of challenges:Deirdre Somers interview - page 7
