The absence of electronic trading facilities has been one of the main points of criticism of the ISE, most notably in a recent consultant's report commissioned by the ISE itself. The ISE tried to negotiate a similar deal with the Paris Stock Exchange last year but those negotiations collapsed and the deal was called off.

Under the agreement between ISE and Deutsche Börse, Irish equities and corporate bonds will be traded on an ISE segment of the Xetra trading system which is also used for the Vienna Stock Exchanges in a similar outsourcing deal.

In announcing the deal, Irish Stock Exchange chief executive Mr Tom Healy said that it "will ensure that the Irish equity market will have the highest levels of visibility and international access" and that he also expects a number of foreign stockbroking firms to join the ISE as remote members as a result of the new arrangements.

Mr Healy also predicted that the liquidity of the Irish equity market should significantly improve from the increased transparency, visibility and overseas membership that the new arrangements will bring. He said the deal will position the exchange to join the emerging Alliance of European stock exchanges which currently comprises eight international markets, including London, Frankfurt, Paris and Milan.