Minister Donohoe notes decision of NTMA Board to withdraw J&E Davy authority to act as primary dealer in Irish Govt bonds
The Minister for Finance, Paschal Donohoe TD, today (Monday) notes and supports the decision by the Board of the NTMA to withdraw J&E Davy’s authority to act as a primary dealer in Irish Government bonds.
The Minister notes that the decision taken by the NTMA today means that Davy Stockbrokers are no longer part of the primary dealer network for the sale of Government bonds.
The Minister said: ‘I note and support the decision taken today by the Board of the NTMA. This is the appropriate decision given the recent very serious findings of the Central Bank.”
Notes for editors
A primary dealer is a bank or other financial institution that has been approved to trade securities with a national government. Primary government securities dealers must meet specific liquidity and quality requirements.
The Irish Government bond market has a strong Primary Dealer group, mainly international investment banks with a global reach. The Primary Dealer system and the issuance procedures for the Irish Government bond market are set out in the January 2018 document: The Primary Dealer System in Irish Government Bonds, including issuance and related debt management arrangements.
The primary dealers recognised by the NTMA each make continuous two-way prices in designated benchmark bonds in specified minimum amounts and within specified maximum bid-offer spreads. A number of stockbrokers also match client orders.
Deborah Sweeney, Special Advisor, Department of Finance — 086 858 6878
Aidan Murphy, Press Officer, Department of Finance - 085 886 6667