Nigerian Exchange Limited (NGX) yesterday announced the launch of West Africa’s first exchange traded derivatives market with Equity Index Futures Contracts.
This
is consistent with the Exchange’s commitment to developing the Nigerian capital
market by providing a market that thrives on innovation and responds to the
needs of stakeholders in accessing and using capital.
The
launch of NGX ETD Market saw the listing of two Equity Index Futures Contracts,
NGX 30 Index Futures and NGX Pension Index Futures, with more securities to be
added in the future.
To
promote clearing efficiency, stability, and confidence, the Exchange has
collaborated with a premier Central Counterparty (CCP) in Nigeria, NG Clearing
Limited, to provide the clearing infrastructure for NGX Derivatives Market and
its clearing members, Access Bank and Zenith Bank.
The
ETDs market will commence with trading activities by the first three trading
license holders – Cardinal Stone Securities Limited, Meristem Securities
Limited and APT Securities and Funds Limited – which have been cleared by NGX
Regulation Limited to facilitate transactions on behalf of investors on NGX
Derivatives Market.
Commenting
on the launch, the Chief Executive Officer (CEO), NGX, Mr. Temi Popoola,
commended the efforts of stakeholders, who have successfully driven the
completion of the derivatives market since 2014.
“I
would like to specially acknowledge the work that was done under the previous
management of the Exchange, led by Mr. Oscar Onyema, whose contributions have
formed the foundation of our present gains and accomplishments made manifest
through the launch of NGX ETDs market.
“NGX
remains committed to building an exchange that can cater to the increasingly
sophisticated needs of domestic and foreign investors.