On January 4th, anyone who owns stocks and shares will be among the first users of the new euro - the currency we will all be spending in note and coin form from January 1st, 2002.
Stockbrokers are in the process of informing their clients that from the first day of trading next month, in accordance with an agreement drawn up by all the participating European stock exchanges, all trading in equities, bonds and other securities will be done in euros.
Davy Stockbrokers has sent out a useful brochure to its clients answering some common questions about this switch-over. For example, there is no need to contact Davy (or any other broker you may be dealing with) to open a new euro account - the broker will have already done so. Any share certificates or bonds you already hold which are denominated in Irish pounds will be recognised as valid, but most companies are likely to change the denomination of the shares "as suitable opportunities arise".
Shares will be bought and sold in euros from January 4th, but unless you have opened a euro account at your bank, any share transactions can be paid for in Irish pounds. If selling shares you can opt to be paid in pounds, but the broker must be notified in writing in advance. However, the brochure also reminds customers that the banks "must lodge euro cheques to your Irish pound account using the irrevocable rate [of conversion that will have been set on December 31st, 1998] at no extra charge and will display the amount of the lodgement in both pounds and euros on your next bank statement".
Customers who opt for their shares to be held in the broker's nominee account do not have to do anything to accommodate the switch to the euro: share and bond certs will still be kept with the company, and all other administration matters will be conducted in the normal way.
Any instructions in 1998 to buy shares that are not completed until 1999 can be settled in either euros or pounds, says Davy; both the euro and the pound prices will be displayed at the bottom of all contract notes.
