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Respite for NSE as Market Makers to Commence Activities in March

By on February 29, 2012

Respite may be on the way for equity investors as the CEO of the Nigerian Stock Exchange has announced that ten companies have been given the nod to commence operations as market makers next month.

The Nigerian Stock is exchange is down 2.86% this year. This development could turn the tides.

Mr. Oscar Onyeama, CEO NSE, disclosed this at the 2012 Stanbic Investor’s Conference held in Lagos yesterday evening.

Market makers are brokerage firms that ensure demand and supply for equity is always filled due to their position of always having a bid and ask price on any security. This helps to deepen markets like Nigeria by enhancing their liquidity.

He said, “The Rules and Guidelines have been submitted to SEC for approval; we received a total of 17 applications from the Broker-Dealer community, which concurrently are going through a rigorous and transparent selection process that we instituted.

“Under this programme, each security will be assigned one primary market maker; and we plan to select 10 primary market makers and to start rolling out the programme, in conjunction with other market structure enhancements, by March this year 2012.”

Also on share buy-backs, Mr. Onyeama disclosed, “Companies are now allowed to buy back up to 15 per cent of their shares which must be retired. And to guard against manipulation, companies may not issue the same types of securities for a period of one year.”

 

One Comment

  1. Anonymous

    February 29, 2012 at 2:42 pm

    GOOD