NSE CEO’s Remarks at the workshop on Market Making, Securities Lending and Short Selling
NSE CEO’S OPENING REMARKS AT THE NSE MARKET MAKING WORKSHOP ON SEPTEMBER 11, 2012 AT THE SHELL HALL, MUSON CENTRE, LAGOS
Distinguished Ladies and Gentlemen, it gives me great pleasure to welcome you on behalf of The Nigerian Stock Exchange to this key milestone in the development of The Nigerian Capital Market – The workshop on Market Making, Securities Lending and Short Selling. This workshop is a prelude to the start of Market making on the 18th of September, 2012.
Your participation in this workshop goes to prove your desire and commitment in contributing your quota to the continued growth and development of our Capital Market and we thank you.
A few months ago, we announced the names of 10 Primary Market Makers that made it through our rigorous selection process. The selected Market Makers are committed to ensuring that the objectives of introducing this initiative into the market will be achieved. The Exchange has worked tirelessly with these market makers, securities lending agents, and indeed key regulators to get us to this point today. We have approved rules and guidelines that cover all three initiatives, both at the Exchange and at the SEC level. The operational guidelines are the result of deep thought, interaction with experienced practitioners across three continents, and significant training.
Gathered here today are tried and tested experts in the securities market and related professions and what we intend to have is a very interactive workshop on Market Making, Securities Lending and Short Selling.
Let me crave your indulgence to stress that for Market Making to be vibrant, the Securities Lending and Short Selling structures being put in place to support the process, must to be leveraged. Therefore, we need all stakeholders to actively understand the mechanics for effecting securities lending and borrowing, as well as short sale transactions. We encourage major asset holders such as AMCON, PFAs, Insurance companies and other entities to participate and earn additional income through the process, while helping to improve liquidity in the market.
Distinguished Ladies and Gentlemen, considering the extent to which we have gone to fine tune this process, I will like to assure all stakeholders that the introduction of Market Making should help to drive liquidity in the marketplace to the benefit of Retail Investors, Institutional Investors, the Broker Dealer Community as well as Regulators. The introduction of securities lending should drive efficiency through the market; and implementation of short selling should allow for a more symmetric market as investors can impose more discipline on quoted companies. All of this should improve the price discovery process and thus reflect the true value of companies.
I believe you will agree with me that the market is in for better times with the introduction of the Market Making, Securities Lending and Short Selling initiatives. Let us collectively give it all the support it needs, especially during the six month rollout period.
Chief Executive Officer