Bloxham suspension may impact on Irish Stock Exchange holding

Wednesday 30 May 2012 07.22
Bloxham suspension could have further financial consequences for the firm.
Bloxham suspension could have further financial consequences for the firm.

Bloxham Stockbrokers' suspension as a member of the Irish Stock Exchange could have further financial consequences for the firm.

The stockbroking company, which was ordered to cease trading by the Central Bank on Friday, was one of the founding members of the stock exchange.

It was immediately suspended as a member of the Irish Stock Exchange yesterday as it was no longer a regulated firm.

In other countries when stock exchanges have been sold it has resulted in payouts for the brokers which owned the exchanges.

While there are no plans to sell the Irish Stock Exchange, there has been speculation in the past that the founding members could go down that route in future.

RTÉ News has learned that as Bloxham may no longer be in a position to act as a guarantor of the exchange.

That could result in it ceasing to be a member which could affect its ability to benefit from the sale of the Irish Stock Exchange were it to occur.

However, in a statement a spokesperson for the exchange said: "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."

It is understood the Bloxham Stockbrokers' auditor Deloitte has not yet met the Central Bank which is current investigating the Bloxham's accounts.

Keywords: bloxham