Irish Stock Exchange Rules [1994] IECA 335 (10th June, 1994)

Irish Stock Exchange Rules [1994] IECA 335 (10th June, 1994)

The Irish Stock Exchange rules requiring fixed minimum commissions and agency-only broking for Irish Government securities transactions constituted decisions by an association of undertakings that prevented, restricted, or distorted competition in the relevant market, offending section 4(1) of the Competition Act, 1991. These arrangements did not satisfy the criteria for a licence under section 4(2) as they did not contribute to technical or economic progress, were not indispensable, and afforded the possibility of eliminating competition in a substantial part of the market.

Citation
[1994] IECA 335
Parties
Applicant: Irish Stock Exchange; Applicant: Irish Stock Exchange member firms; Decision Maker: Competition Authority
Jurisdiction
Ireland
Procedural Posture
Competition Authority Decision / Final Decision
Outcome
Certificate and licence refused
Legal Topics
Price Fixing, Agency Only Broking, Minimum Commission Rules, Market Making, Licensing Under Competition Act
Competition Law Price Fixing Agency Only Broking Minimum Commission Rules Market Making Licensing Under Competition Act

Case Brief

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Parties

Irish Stock Exchange

Applicant

Irish Stock Exchange member firms

Applicant

Competition Authority

Decision Maker

Procedural Posture

Competition Authority Decision / Final Decision

Legal Issues

  1. 1 Whether Irish Stock Exchange rules on minimum commissions and agency-only broking offend section 4(1) of the Competition Act, 1991
  2. 2 Whether these rules qualify for a licence under section 4(2)

Ratio Decidendi

The Irish Stock Exchange rules requiring fixed minimum commissions and agency-only broking for Irish Government securities transactions constituted decisions by an association of undertakings that prevented, restricted, or distorted competition in the relevant market, offending section 4(1) of the Competition Act, 1991. These arrangements did not satisfy the criteria for a licence under section 4(2) as they did not contribute to technical or economic progress, were not indispensable, and afforded the possibility of eliminating competition in a substantial part of the market.

Court Disposition

Certificate and licence refused

Orders

  • The Competition Authority refuses to issue a certificate or grant a licence to the Irish Stock Exchange Rules in respect of Irish Government securities (CA/199/92E), notified on 29 September 1992.