NSE releases minimum operating standards for dealing members

The Nigerian Stock Exchange (NSE) has announced new minimum operating standards for all licenced dealing members to ensure long-term investor protection.

The new standard was issued in a statement by the NSE in Lagos on Monday and obtained by the News Agency of Nigeria (NAN).

The statement said that the deadline for the minimum operating standard would be Jan.1, 2015.

According to it, the new standards for the three classes of dealing members – broker dealers, brokers and dealers – would address the five broad important areas of operation.

The NSE said that these areas included manpower and equipment, organisational structure and governance, effective processes, global competitiveness and technology.

It quoted Ms Tinuade Awe, NSE Head, Legal and Regulation Division, as saying that the objective was to transform operators with new minimum operating standards that would be easy to comprehend and implement.

Awe said that the NSE had undergone tremendous transformation over the years and intended to extend the forward-moving traits to the dealing members.

“We intend to ensure that operators have very robust controls, strong governance framework and sustainable operations that will enable them compete globally for the benefit of the investors and market,” she said.

“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,” it said.

She said that it could not afford to be inferior to anyone in terms of size, skill, technology or organisational governance of its market participants.

Mr Olufemi Shobanjo, Head of Broker Dealer Regulation, was also quoted as saying that investors would be given extra protection with the new minimum standard.

Shobanjo said that investors would be dealing with very robust, strong institutions with good controls and globally acceptable processes. (NAN)