By Peter OBIORA Investadvocate

Lagos (INVESTADVOCATE)-The Nigerian Stock Exchange (NSE) Monday said Citibank Nigeria Limited and First Bank of Nigeria Plc (FBN) are awaiting the approval of Nigeria’s Securities and Exchange Commission (SEC) to function as Securities Lending Agents (SLAs) to its Marketing Making programme to be unveiled September 18 2012.

Ade Bajomo, Executive Director (ED), Market Operations and Technology of the Nigeria’s Exchange disclosed this to www.investadvocateng.com at the Market Making, Securities and Short Selling Workshop organised in Lagos Nigeria for Capital Market Stakeholders.

Bajomo affirmed that apart from the Stanbic IBTC Plc and United Bank for Africa Plc (UBA), the applications of Citibank Nigeria and First Bank are being processed by Nigeria’s SEC.

“We have two (2) SLAs already approved, we believe there are at least two more; applications are being processed at the Securities and Exchange Commission and we hope there are more Companies applying to be SLAs.

According to him, there are no specific numbers of Firms required to operate as SLAs; but of importance is their good network and wherewithal to function effectively.

“There are no specific numbers of Firms required to be SLAs, what should be far more important is that the SLAs have the credibility to be SLAs. They require very strong IT, good network and wherewithal to function effectively as SLAs; these should be the overriding criterion to be an SLA” Bajomo said.

Third week of August 2012, UBA and Stanbic IBTC were appointed SLA’s for Equities and Bond transactions at the Nigeria’s Exchange.

Securities Lending’s transaction involves the temporary loan of Securities from a Lender to a Borrower; usually through a Security Lending Agent (SLA)