Ireland may need to arrange for a new central depository and settlement arrangements for securities after the U.K. leaves the EU, The Irish Times reported April 3, citing an Irish Stock Exchange spokesman.
The exchange, which is the only national stock exchange in Europe that does not have a domestic central securities depository, currently uses a U.K.-based depository called Crest, operated by Euroclear UK & Ireland in London. But it is unlikely that Crest will be able to operate in the country if the U.K. loses passporting rights.
The spokesman said the exchange has been looking at potential options, but did not go into specifics.
According to Sean Tuffy, head of strategy for Europe and Asia at Brown Brothers Harriman, Ireland could either set up a central securities depository or move to another provider in the EU.
"The Irish Stock Exchange could move in future to work directly with Euroclear in Brussels or, indeed, with Clearstream in Luxembourg," Tuffy added.