Commerzbank outlines Irish plan

Commerzbank Global Equities, the equities arm of the giant German bank Commerzbank which has just obtained membership of the Irish Stock Exchange, does not see itself competing for business with Irish stockbrokers, the bank's head of global equities, Mr Mehmet Dalman, has stated.

Rather, Commerzbank plans to use its ISE membership to boost its presence in Irish equity trading at the expense of other international broking groups operating out of London. The head of Commerzbank's Irish equity desk, Mr Patrick Rardan, said that liquidity in Irish stock has become more focused on the Dublin market, with the London's market share of trading in Irish equities slipping in recent years.

Commerzbank will operate its Irish desk out of its London offices, but Mr Dalman said that he is "not averse" to locating an office in Dublin. "I'm open-minded on a direct Irish presence, and there may be an argument for an equity sales desk in Dublin. But what we are doing now is a first step." Commerzbank already employs about 150 people in a number of IFSC operations.

He added that Commerzbank does not operate its equity trading on a country basis, but rather on a pan-European sectoral basis and that its equity research is conducted on this basis. "Our membership of the Irish exchange will allow us to become a direct, active participant in the Irish equities market, facilitating the bank's involvement in local equity offerings and brokerage," he said. He added that Commerzbank will work closely with Irish brokers.

Mr Dalman emphasised that Commerzbank also intends to become an active participant in the Irish corporate finance market. "This move doesn't make sense unless we also are involved in corporate finance," he said, adding that the Dublin market has a number of companies with international investment banking requirements.

He said Commerzbank would aim to become involved in advising both on large-scale initial public offerings like Government privatisations and also advice to middle-capitalisation companies. He said the bank has been particularly active in bringing middle-sized companies to the German Neumarket, and would aim to provide the full gamut of corporate finance services, from venture capital through to IPOs.