By InvestAdvocate

Lagos (INVESTADVOCATE)- The Nigerian Stock Exchange (NSE) Wednesday said it will commence its Market Making Programme September 18 2012.

This is contained in a Statement by Wole Tokede, Head, Media Relations of the NSE and made available to www.investadvocateng.com in Lagos Nigeria.

“The Management of The Nigerian Stock Exchange (The NSE) has announced September 18, 2012 as the commencement date of its Market Making Programme” the Statement said.

The NSE said as part of activities heralding the kick-off of the Market Making initiative, it will hold a Market-Wide Workshop on September 11 2012 to enlighten Market Stakeholders on its rules and operational guidelines.

“The Exchange has concluded arrangements to facilitate a Market-Wide Workshop on September 11, 2012 to intimate Market Stakeholders with the rules and operational guidelines for the programme” the NSE said.

Olumide Lala, Head, Transformation and Change of the Nigeria’s Exchange, affirmed that the workshop will bring together experts in Market Making, Securities Lending and Short Selling with other key Capital Market Participants such as Settlement Banks, Pension Fund Administrators, Insurance Companies and Companies listed on the Exchange to name a few.

“Market Makers will play a central role in the provision of two-way quotes (comprising of buy and sell prices) for the Securities that they are making Markets on. Leveraging the Securities Lending process, Market Makers will be able to borrow Securities in order to settle ‘buy order imbalances’ from customers. A ‘hybrid’ Market, allowing both Market Makers to provide two way quotes and licensed Broker/Dealers of The Exchange to submit orders as is currently done, will be operated from the commencement date of this key initiative” he said.

According to Lala, rationalising the importance of Securities Lending in the Market Making initiative would provide for lending and borrowing of Securities which in return will enable investors earn returns on their ‘Idle’ Stocks whilst contributing significantly to Market Liquidity and Price Efficiency through legitimate investment activity in covered Short Selling.

He further affirmed that over 300 participants are expected to take part in the workshop and they will be drawn from various Professional Bodies, Associations and key stakeholders in the Market.

It would be recalled that the Nigerian Bourse announced the names of the Market Makers on the Trading Floor of the NSE in the Second Quarter (Q2) of year 2012 following a rigorous selection process, where the unveiling of the ten (10) Broker/Dealer Firms selected as Market Makers was described by Oscar Onyema, Chief Executive Officer (CEO) of the Nigeria’s Exchange as a major landmark in enhancing the liquidity and depth of the second largest Market in sub-Saharan Africa.