sets new op­er­at­ing stan­dards

Daily Trust - - BUSINESSS - From Kay­ode Ogun­wale, La­gos

The Nige­rian Stock Ex­change (NSE) has set new min­i­mum op­er­at­ing stan­dards for all deal­ing mem­bers li­censed by the bourse, ef­fec­tive Jan­uary 1, 2015.

The new stan­dards cater for all three classes of deal­ing mem­bers - bro­ker deal­ers, bro­kers and deal­ers - and ad­dress the five broad ar­eas of man­power and equip­ment; or­gan­i­sa­tional struc­ture and gov­er­nance; ef­fec­tive pro­cesses; global com­pet­i­tive­ness; and tech­nol­ogy.

Ac­cord­ing to head of the ex­change’s Le­gal and Reg­u­la­tion Di­vi­sion, Ms. Tin­u­ade Awe, the NSE has un­der­gone tremen­dous trans­for­ma­tion over the last cou­ple of years and in­tends to ex­tend these for­ward-mov­ing traits to the deal­ing mem­bers. “Our ob­jec­tive is to trans­form the oper­a­tors now with set min­i­mum op­er­at­ing stan­dards in a con­cise man­ner that is both easy to com­pre­hend and im­ple­ment. We in­tend to en­sure that the bro­ker deal­ers, bro­kers and deal­ers have very ro­bust con­trols, strong gov­er­nance frame­work and sus­tain­able op­er­a­tions that will en­able them com­pete on a global scale for the ben­e­fit of the in­vestors and the Nige­rian cap­i­tal mar­ket,” said Awe.

“The cap­i­tal mar­ket is very dy­namic, with a di­verse mix of lo­cal and for­eign in­vestors who can in­vest with the con­fi­dence that the deal­ing mem­bers op­er­ate pur­suant to clearly de­fined stan­dards that are com­pa­ra­ble to those to which bro­ker deal­ers in other climes op­er­ate.

We sim­ply can­not af­ford to be in­fe­rior to any­one in terms of size, skill, tech­nol­ogy or or­gan­i­sa­tional gov­er­nance of our mar­ket par­tic­i­pants,” she added.

Shed­ding more light on the ben­e­fits, Head of Bro­ker Dealer Reg­u­la­tion, Mr. Olufemi Shobanjo, noted that “the in­vestors will be given an ex­tra de­gree of pro­tec­tion be­cause the oper­a­tors they will be deal­ing with will be very ro­bust, strong in­sti­tu­tions that are prop­erly run with good con­trols and glob­ally ac­cept­able pro­cesses.”

“An­other thing this also en­sures is that the Nige­rian cap­i­tal mar­ket as a whole is sus­tain­able with bet­ter in­vestor con­fi­dence and even prospect com­pa­nies that might want to list on the ex­change will be warmer to­wards us if a strong deal­ing mem­ber firm is able to give bet­ter in­for­ma­tion and bet­ter qual­ity ad­vise while aptly walk­ing them through the process of list­ing in our mar­ket,” he stressed.

Os­car Onyema, DG, NSE

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