NASD Plc, operator of the NASD Over-the-Counter market, has said the value of transactions executed on the platform has hit the N2bn mark.

NASD transactions had reached N1bn in September, indicating that an additional N1bn worth of transactions were carried out on the platform in three months as more investors become aware of its existence.

Inaugurated in July, 2013, the NASD is an alternative trading platform created by the National Association of Securities Dealers to bring more liquidity to Nigeria’s capital market.

The platform is also licensed by the Securities and Exchange Commission to trade a broad range of instruments over-the-counter, including bonds and securities not listed on the Nigerian Stock Exchange.

In September, the Managing Director and Chief Executive Officer, NASD OTC, Mr. Bola Ajomale, told our correspondent that there had been an upsurge in transactions on the platform, which witnessed just N30m of transactions in the first six months of the year.

He had attributed the move to increased awareness about the transparency and liquidity the platform offered investors.

He added, “Every day we see more shares being brought into the system and every day we see a gradual growth in the type of transactions that are being done. So, it is a slow growth, but because we are using a familiar community, it is a good growth.”

NASD re-echoed the position after hitting the N2bn mark in a statement, saying, “The mark is a cumulative effect of and increasing preference investors have for transparency and participating institutions, recognition of the liquidity the market affords.

“This number is significant because it represents deals that hitherto would not have been captured by SEC, tax authorities, economic planners and analysts.

“The NASD OTC market is, therefore, creating an opportunity for both institutional and individual investors to accept and use the same data and get a clearer perspective of our investment terrain.”

It thanked the stakeholders whose contributions had helped it to reach the milestone and to play a part in the development of the capital market.

“NASD OTC recognises the indispensable contributions of Participating Institutions, registrars, custodians and all other operators who have started the development of this market Some PIs contributed directly by trading through the system – and a great many have been invaluable in testing, fine-tuning and advertising the market,” it said.

“We appreciate all players in the OTC market and look forward to more liquidity and transparency in the OTC market in Nigeria.”

The NASD also said that 10 new institutions were now participating on the platform.

According to it, the development will enable the new participating institutions to transparently represent the interest of their clients.

The move brings the number of participants on the OTC market to 87 broker/dealers and 23 issuing houses.

Participating institutions are operators who are licensed to trade on and introduce securities to the OTC market.

“These firms have undertaken to operate in the best interest of their clients and are subject to the rules of the market,” the NASD said.

Punch