. As Exchange re-launches market making programme
Nigerian Exchange Limited (NGX) has announced the resignation of Oscar N. Onyema, as Non-Executive Director, effective immediately.
Onyema’s resignation comes on the back of the imminent listing of Nigerian Exchange Group Plc (NGX Group), where he serves as the Group Managing Director/Chief Executive Officer (GMD/CEO), on the main board of NGX.
Consequent upon this resignation, NGX will uphold Rule 184(2)(a) of the Securities and Exchange Commission (SEC) Consolidated Rules 2013. This states that: “A Securities Exchange shall have a code of conduct for its council members or board which shall be approved by the Commission, and shall contain amongst others the following provisions, to wit, that the council members or board shall: (a) not be a staff of a quoted company and its subsidiaries.”
Onyema’s resignation comes as NGX also announced the re-launch of its Market Making programme following the review of its rules to provide the flexibility to implement diverse programmes across all asset classes listed on The Exchange, as approved by the SEC, according to separate statements.
Commenting on the resignation, NGX Chairman, Abubakar Mahmoud, was quoted: “On behalf of the Board and Management of The Exchange, I extend our heartfelt gratitude to Mr. Onyema for his selfless service to The Exchange. As he transitions into this new phase as the GMD/CEO of a listed company, we reiterate our commitment to act in the best interest of all Issuers to the benefit of all stakeholders in the capital market.”
The Chief Executive Officer, NGX, Temi Popoola, noted that, “NGX owes its solid foundation to the effort of leaders like Mr. Onyema, who worked tirelessly to build a capital market infrastructure we can be proud of. During his time as a Non-Executive Director on the Board of NGX, he brought to bear his wealth of experience and the unique institutional knowledge he possesses and we are grateful for that.”
To commemorate the listing of NGX Group on the Exchange, Popoola will host the Group Chairman, NGX Group, Abimbola Ogunbajo, Onyema, and other key stakeholders to a virtual Closing Gong Ceremony later today.
Deepening liquidity
The Exchange explained that the re-launch of the market making programme is to deepen liquidity in the capital market.
Market Making occurs when a Trading License Holder provides continuous two-way quotes – both buy or sell prices – to the market on selected securities during the trading day.
Essentially, market makers display the amount they are willing to buy or sell a security and the guaranteed number of units. Once they receive an order from a buyer, they sell off from their own inventory, ensuring that the order is completed.
We recognise the importance of liquidity as a driver of participation in our market and are confident that Market Making will ease the barrier of entry and exit, whilst providing a measure of control over volatile price fluctuations.
NGX Market Makers across its product classes include ABSA Securities Nigeria, CSL Stockbrokers, Vetiva Securities, Stanbic IBTC Securities, Chapel Hill Denham Securities, FBN Quest Securities, and United Capital Securities. The list of Market Makers and their selected securities can be found on www.ngxgroup.com.
Speaking about the programme, Popoola was quoted: “At NGX, we are committed to tackling liquidity constraints and ensuring sustained flow of funds in the capital market. We recognise the importance of liquidity as a driver of participation in our market and are confident that Market Making will ease the barrier of entry and exit, whilst providing a measure of control over volatile price fluctuations.
“As we continue to consider ways to maximise opportunities across our value chain, our goal is to evolve with the increasingly sophisticated needs of our stakeholders and Market Making is just one of the strategies we will deploy in this regard. We also wish to thank the SEC and CSCS for their contribution towards the re-launch of the programme.”
Also commenting, the Divisional Head, Trading Business, NGX, Jude Chiemeka, said: “The benefits to be reaped from Market Making cut across the spectrum of our market. For the Market Makers, they can expect enhanced revenue opportunities as well as reduced transaction and regulatory fees in recognition of the responsibility and risks they have taken on.
“There are also the benefits of increased liquidity, greater market depth, enhanced portfolio diversification, and more, that other capital market players will enjoy. To ensure that the market indeed reaps the benefits, we have been painstaking in our selection of Market Makers and we encourage investors to leverage the opportunities they bring to the table.”
Recall that NGX first launched the Market Making programne in 2012, to improve liquidity and increase efficiency across asset classes. This re-launch takes into consideration the evolving needs of stakeholders and will allow for periodic adjustments to meet the objectives of the programme.
