By Opeyemi Issa InvestAdvocate
Lagos (INVESTADVOCATE)-Stanbic IBTC, FBN Securities and Greenwich Securities are among the list of the 10 Market Makers unveiled Tuesday by the Nigerian Stock Exchange (NSE) in Lagos Nigeria.
This is contained in a Statement Wednesday by Wole Tokede, Senior Manager Media Relations| Corporate Communications of the Nigeria’s Exchange and made available to www.investadvocateng.com.
Apart from the above, the other Market Makers listed are Renaissance Capital, Future View Securities, Vetiva Capital, ESS/DunnLoren Merrifield, WSTC, Capital Bancorp and CSL Stockbrokers.
According to the Statement, Oscar Onyema, Chief Executive Officer (CEO) of the NSE at the unveiling of the 10 Companies selected as Market Makers said it was a major landmark at bringing back liquidity and depth into the second largest Market in sub-Saharan Africa.
“This is a great milestone and a major step in the direction of turning the Market round to have liquidity and depth back into the Market. We will continue to move forward on this†the NSE CEO said.
Onyema in the Statement affirmed that Companies selected went through a very rigorous process and met the minimum Net Capital requirement of N570 million. “We also examined their compliance history and looked into their operational capabilities including their technology and processes†he said.
“The selected firms were taken through trainings, debated the appropriate market structure to be used and The Exchange further went through the approval of the Securities and Exchange Commission (SEC) in the selection process†Onyema affirmed.
The Statement further affirmed that a major highlight of the unveiling was the selection of a basket of quoted companies in which the financial intermediaries would provide the desired level of liquidity via a blind draw.
“The primary obligation of the Market Maker is to always make a two-way price in each of the stocks in which they make markets.
The Exchange also promised that a number of firms will be selected to perform a supplementary Market Making role at a future date†the NSE said.