Michael Ahern (Cork East, Fianna Fail)

Section 33 allows the Minister to proscribe by provisional order any market to which market abuse law shall apply. It is important that requirements under the market abuse directives should be capable of being applied to any new market. Any provisional order made by the Minister must be confirmed by an Act of the Oireachtas. It is understood that the Irish Stock Exchange proposes to establish a new market, the Irish Enterprise Exchange, for smaller companies which will not fall within the definition of "regulated market" as defined at present in the investment services directive, nor as redefined in the revisions being made by directive 2004/39 to the investment services directive 93/22 which is due for transposition by member states by 2006.

The exchange's action is understood to be a direct response to a similar initiative taken by the London Stock Exchange. Following discussions with the IFSRA it is our view that the market abuse directive requirements should be capable of being applied to any such new market. This section will allow the Minister to prescribe any market to which the market abuse regulations should apply. Subsection (1) gives the Minister authority to provide by a device called a provisional order that one or more provisions of Irish market abuse law may apply to any market specified in that order. The Minister must consult with the competent authority, namely IFSRA, before making the order.

Subsection (2) allows the Minister to amend or revoke any order made under this section. As this type of order is different from those provided for in section 4 of the present Bill a separate right for amendment or revocations needs to be provided for. Subsection (3) provides that any such order must be confirmed by an Act of the Oireachtas and shall not come into effect until so confirmed.