Nigeria names securities lending agents
21 August 2012 Lagos
Image: Shutterstock
The Nigeria Securities & Exchange Commission has approved United Bank of Africa (UBA) and Stanbic IBTC as securities lending agents for equities and bond transactions at the Nigeria Stock Exchange, according to reports.
The exchange relaxed restrictions on short selling in May, allowing stock price movement of up to 10 percent per day and introducing market makers to borrow stocks for shorting.
Speaking at the time, Ade Bajomo, executive director of market operations and technology at the exchange, said: “What would we like to be when we grow up? I think Singapore. A market that rises up from almost zero, a market run in an efficient manner ... a financial hub. One of the key initiatives is market making, securities lending and short selling. We want to build a hybrid market, with market-makers to create liquidity."
Approval of the two securities lending agents reportedly followed a review of applications from five banks in which UBA and Stanbic came out on top.
The commission is also scrutinising market making rules before implementing them, while the exchange designated Stanbic, Renaissance Capital, Future View Securities, Vetiva Capital and ESS/DunnLoren Merrifield as market makers in April.
Oscar Onyema, CEO of the exchange, said at the time of the designations: “This is a great milestone and a major step in the direction of turning the market round to have liquidity and depth back into the market. We will continue to move forward on this.”
“The companies selected went through a very rigorous process and met the minimum net capital requirement of N570 million. We also examined their compliance history and looked into their operational capabilities including their technology and processes. The selected firms were taken through trainings, debated the appropriate market structure to be used and the exchange further went through the approval of the Securities and Exchange Commission in the selection process.”
The exchange relaxed restrictions on short selling in May, allowing stock price movement of up to 10 percent per day and introducing market makers to borrow stocks for shorting.
Speaking at the time, Ade Bajomo, executive director of market operations and technology at the exchange, said: “What would we like to be when we grow up? I think Singapore. A market that rises up from almost zero, a market run in an efficient manner ... a financial hub. One of the key initiatives is market making, securities lending and short selling. We want to build a hybrid market, with market-makers to create liquidity."
Approval of the two securities lending agents reportedly followed a review of applications from five banks in which UBA and Stanbic came out on top.
The commission is also scrutinising market making rules before implementing them, while the exchange designated Stanbic, Renaissance Capital, Future View Securities, Vetiva Capital and ESS/DunnLoren Merrifield as market makers in April.
Oscar Onyema, CEO of the exchange, said at the time of the designations: “This is a great milestone and a major step in the direction of turning the market round to have liquidity and depth back into the market. We will continue to move forward on this.”
“The companies selected went through a very rigorous process and met the minimum net capital requirement of N570 million. We also examined their compliance history and looked into their operational capabilities including their technology and processes. The selected firms were taken through trainings, debated the appropriate market structure to be used and the exchange further went through the approval of the Securities and Exchange Commission in the selection process.”
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