Denis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 69: To ask the Minister for Finance the steps he will take to regulate food securities trading on the stock market; and if he will make a statement on the matter. [34023/11]

Michael Noonan (Limerick City, Fine Gael)
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I understand that the Deputy is referring to trading in "futures" in foodstuffs such as wheat on stock markets and the need to have a regulatory framework in place to deal with these trades. I am pleased to inform the Deputy that a regulatory regime for these types of trades is already in place. This regime was set down in the 2004 EU Directive on Markets in Financial Instruments, which was transposed into Irish law by way of the European Communities (Markets in Financial Instruments) Regulations 2007 (S.I. No. 60 of 2007). Part 3 of Schedule 1 of that S.I. provides a list the financial instruments which are within the scope of the Regulations. Paragraph 8 of that Part refers to "options, futures, swaps, forward rate agreements and any other derivative contracts" goes on to set down specific circumstances where these would apply. Similar provisions should be in place in all Member States. The scope of this paragraph is wide-ranging and would include derivative contracts in commodities such as foodstuffs.

The Central Bank of Ireland is the competent authority in this country for the purposes of this Directive.

I should point out to the Deputy that currently there are no commodities exchanges established in Ireland, either as part of the Irish Stock Exchange or elsewhere. There are approximately 10 commodity exchanges operating in Europe. Most of these specialise in particular commodities, such as metals, emissions allowances or agricultural derivatives. The main agricultural exchanges, where foodstuff futures would be traded are based in the United Kingdom and Germany.

Question No. 70 answered with Question No. 50.