The Nigerian Stock Exchange (NSE) has said market makers appointed  about three months ago will begin operations any moment from now  as issues delaying their commencement  are being  sorted out.

The Chief Executive Officer of NSE, Mr. Oscar Onyema, disclosed  this while responding to THISDAY’s enquiries on the delay in the commencement of operations by the market makers.

The exchange had last April appointed 10 market makers to enhance the flow of liquidity in the equities market. But they are yet to begin  to play their role due to some operations issues.

However, Onyema raised the hope of market maker becoming operational very soon, saying the outstanding issue such as approval of securities lending agents would be addressed shortly.

He said: “Whilst internal systems and processes at the NSE are ready to support the initiative, the management of the Exchange is working closely with the selected market makers and the regulators to ensure general market readiness for the initiative, which will commence soon.  It is anticipated that outstanding issues such as the approval process for securities lending agents will be addressed by the regulators shortly.”

He added that the NSE’s request to the Central Bank of Nigeria (CBN) for a waiver on the 10 per cent limit of bank’s exposure to the capital market, was begin considered favourably.

“With respect to the policy on bank’s aggregate exposure to margin loans which currently stands at 10 per cent of their total loans and advances, the exchange has made a representation to the CBN to relax this limitation.  We understand that the request is under consideration.  However, a number of banks which have not reached this limit have demonstrated a willingness to support the initiative,” Onyema said.

The operations of market makers are believed to have been  integral part of the  recipe needed for the  nation’s stock market  to recover.

Unveiling the market makers last April on the day he marked one year in office  as the CEO of the exchange, Onyema had said:  “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 10 stockbroking firms, which were selected from a list of 20 that applied  include: Stanbic IBTC; Renaissance Capital Limited; Future View Securities Limited; Vetiva Capital Limited; ESS/DunnLoren Merrifield, WSTC Securities Limited; Capital Bancorp Limited; FBN Securities Limited; Greenwich Securities  Limited and  CSL Stockbrokers Limited.

Source: ThisDay/Goddy Egene