Denis Naughten (Roscommon-South Leitrim, Independent)
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Question 20: To ask the Minister for Finance the steps being taken to regulate food securities trading on the stock market; and if he will make a statement on the matter. [25417/12]

Michael Noonan (Limerick City, Fine Gael)
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Food securities trading forms part of the regulation of derivatives. As the Deputy knows, the regulation of derivatives has been part of our discussions with the EU, and has been on the Ecofin agenda since September 2010, when the Commission published its proposal to regulate this market in the context of over-the-counter (OTC) trades.

I can inform the Deputy that, following discussions, agreement on a final text has been reached with all of the EU institutions, subject to final technical details being clarified. The scope of this draft Regulation covers all over-the-counter derivatives, not just food securities.

In relation to derivatives traded on exchanges, as I indicated in my last reply to the Deputy in February, Ireland already has a regulatory regime which comes from the 2004 EU Markets in Financial Instruments Directive (MiFID), which is currently being reviewed.

The work on both OTC derivatives and the MiFID review is expected to result in a tighter regime for all derivatives, including food securities, whether traded OTC or through exchanges. The measures are intended to keep pace with trends in derivatives trading, and in line with G20 commitments. When finalised, these EU legislative initiatives will come into force in all Member States. The Central Bank of Ireland is the competent authority in this country for the purposes of derivatives legislation.