Bloxham closure could affect ISE

The Central Bank has refused to comment on any implications that the failure of Bloxham stockbrokers could have on the Irish Stock Exchange.

Bloxham was one of the founders of the Irish Stock Exchange along with six other firms. The country’s oldest stockbroker was ordered to cease trading last week after the Central Bank discovered irregularities.

Bloxham provided a guarantee to the Irish Stock Exchange, but since the Central Bank’s probe into the stockbroker’s and the sale of its asset management and private client business, Bloxham is no longer able to act as a guarantor.

In a statement the Irish Stock Exchange confirmed that Bloxham had been suspended. “Bloxham has been suspended as a member firm of the ISE following the directions imposed by the Central Bank of Ireland.

“The ISE will consider all related matters at the conclusion of the CBI investigation. At this stage, we do not believe it is helpful to speculate on the outcome of those investigations,” the spokesperson said.

It is unclear how long the initial investigation will take. The Central Bank’s stockbroking regulation unit is investigating how the company ended up in a position where it couldn’t meet the minimum capital requirements for a firm of its size.

It is understood that the issues stem from a number of trades placed by Bloxham on Irish companies.

Yesterday, Irish Examiner columnist and former Bloxham employee Joe Gill said the closure was “the final blow after four years of tough trading, salary cuts and downsizing”.

“Irish stockbroking is not made up of a bunch of geezers in bowler hats with snotty accents. Instead, the firms involved contain a slice of Irish society that come from backgrounds as diverse as farming, teaching and the civil service.

“There are plenty of those caught up in this collapse and their difficulties are those shared with many others who have lost their jobs in this horrible recession. I’m not asking for the hankies to come out but a sense of balance is needed amid the caricatures that pour out at times like this.”

There was shock across the financial industry when it emerged Bloxham had been incorrectly reporting its accounts since 2007.

The partner responsible for the firm’s compliance and finance, Tadhg Gunnell, has been suspended.