Davy, one of Ireland’s leading stockbrokers, has been reinstated as a primary dealer in Irish government bonds, the National Treasury Management Agency (NTMA) announced today. The move comes four years after the firm was dropped due to a record-breaking €4.1 million fine imposed by the Central Bank for breaching market rules.
Davy’s Removal and Controversy
The NTMA removed Davy Stockbrokers in 2021 following an investigation that revealed 16 of its staff had engaged in improper trading practices in 2014. The Central Bank determined that these employees had personally profited from a deal without disclosing the conflict of interest to the client or the firm’s compliance officials. The public backlash over the fine led to significant reputational damage for the company.
Later in 2021, Bank of Ireland acquired most of Davy Stockbrokers, helping to stabilize its operations.
Reinstatement as a Primary Dealer
As of February 28, Davy will once again be recognized as a primary dealer in Irish government bonds. This means the firm will be able to bid on Irish government bond issuances and act as a market maker for these bonds on major electronic trading platforms.
Davy joins a select group of 15 primary dealers, which includes major international financial institutions such as JP Morgan, Goldman Sachs, HSBC France, Barclays, BNP Paribas, and Deutsche Bank.
Davy’s Commitment to Irish Debt Markets
Reacting to the reinstatement, Michael Cummins, Head of Fixed Income at Davy, emphasized the importance of international bond markets in funding Ireland’s future financial needs. He stated that Davy is committed to supporting the NTMA’s objectives in this area.
Damian Roddy, Head of Capital Markets at Davy, highlighted the firm’s substantial investment in an experienced Fixed Income team, saying that this step builds on Davy’s long-standing role in Ireland’s debt capital markets.
With its return to primary dealer status, Davy looks to rebuild trust and reassert its position in Ireland’s financial sector after the controversies of recent years.