By Peter OBIORA InvestAdvocate

Lagos (INVESTADVOCATE)-The Nigerian Stock Exchange (NSE) Monday said it will launch its supplementary Market Making (SMM) April 02 2013.

Ade Bajomo, Executive Director (ED), IT and Market Operations disclosed this at a Media Parley to announce the commencement of Supplementary Market Making Programme.

Bajomo affirmed the Supplementary Market Making programme will be on a six (6) months trial period.

According to him, the initiative will bring more liquidity in the Nation’s Stock Exchange. “Apart from liquidity, this will bring more retail investors to the Nigerian Capital Market” he said.

Bajomo said about 23 applications has been received and being processed.

On allocation of Securities, Bajomo said a Dealing member-firm desirous of acting as SMM shall in addition to its application in writing select a minimum of ten (10) securities in order of preference from the securities listed on The Exchange.

He further affirmed that where two or more firms select the same security, Net Liquid Capital, experience in Market Making and past performance both in volume and value would be used as criteria to breaking the tie.

“On the Minimum Net Liquid Capital requirement, a Supplementary Market Maker is expected to have N320 million, existing Primary Market Maker-Equities N820 million, existing Primary Market Maker- Bonds  N820 million; while existing Primary Market Maker Equities and Bonds N1.320 billion” Bajomo said.

The NSE had said one of the major strategies embarked on by its Management as a means of increasing Investors’ confidence, deepening the Market and addressing lack of liquidity in the Market is the introduction of the Supplemental Market Maker (SMM) program to support the existing Primary Market Maker (PMM) program.