By Chinwendu Obienyi
In its bid to continue championing Africa’s growth, the Nigerian Exchange Limited (NGX), yesterday, announced the launch of West Africa’s first Exchange Traded Derivatives (ETDs) market with Equity Index Futures Contracts.
According to the NGX, the new development is consistent with the Exchange’s commitment to develop the Nigerian capital market (NCM) by providing a market that thrives on innovation and responds to the needs of stakeholders in accessing and using capital. The launch of the NGX ETD Market saw the listing of two Equity Index Futures Contracts, NGX 30 Index Futures and NGX Pension Index Futures, with more securities to be added in the future. To promote clearing efficiency, stability, and confidence, the Exchange has collaborated with a premier Central Counterparty (CCP) in Nigeria, NG Clearing Limited, to provide the clearing infrastructure for NGX Derivatives Market and its clearing members – Access Bank and Zenith Bank.
The ETDs Market will commence with trading activities by the first three trading licence holders – Cardinal Stone Securities Limited, Meristem Securities Limited and APT Securities and Funds Limited – who have been cleared by NGX Regulation Limited to facilitate transactions on behalf of investors on NGX Derivatives Market. Commenting on the launch, the Chief Executive Officer, NGX, Temi Popoola, commended the efforts of stakeholders who have successfully driven the completion of the derivatives market since 2014.