The Irish Enterprise Exchange (IEX), the new market specially designed for small to mid-sized Irish firms, began operating yesterday with eight listed companies.

All eight firms had previously been quoted on the Exploration Securities Market (ESM) or the Developing Companies Market (DCM), both of which have now ceased to exist. Their members have instead transferred to the IEX, which is modelled on London's Alternative Investment Market (AIM).

Among the firms to move to the new market are housebuilding group Abbey, recruitment firm CPL and e-learning group Thirdforce, which issued full-year results yesterday showing a pre-tax loss of €324,000.

The exploration firms that will trade on the new market are Glencar, Minmet, Ormonde, Ovoca and Providence Resources.

The Irish Stock Exchange is also aiming to attract new candidates to the IEX market. It is currently in discussions with two companies about taking a listing on the market, which, like AIM, has lighter regulatory requirements and lower costs than traditional stock markets.

The ISE believes that some of those Irish firms planning an AIM listing may also choose a dual listing on the IEX given that they can use the same admission documents and timetable for both markets.

It is also hoping that some of those Irish companies already listed on AIM may take an IEX listing as well.

"A public company's home market can be particularly important for further fundraising after an IPO and is also more likely to provide broker and analyst support necessary to support share trading," the exchange said.

All IEX companies will participate in the ISEQ index of Irish shares.

Meanwhile, it is understood that the planned launch of an Exchange Trade Fund, based on the leading companies on the ISEQ, is imminent, pending receipt of final authorisation from the financial regulator, IFSRA.