By InvestAdvocate

Lagos INVESTADVOCATE)-The Nigerian Stock Exchange (NSE) said on Thursday it has appointed Chapel Hill Denham Securities Ltd as primary market maker (PMM).

The NSE said Chapel Hill’s appointment follows the resignation of WSTC Financial Services Limited, one (1) of ten primary market makers appointed in September 2012.

Haruna Jalo-Waziri, executive director, business development of the NSE, described the appointment as a positive step towards the improvement of market liquidity and depth.

“Chapel Hill went through a rigorous selection process and met the minimum net capital requirement, as well as compliance history and operational standards, as set by the Exchange,” he said.

The NSE says the market making scheme is an initiative aimed at providing liquidity through the establishment of best prices and the narrowing of spreads.

According to the Exchange, there is one (1) primary market maker and two (2) supplemental market makers assigned to every listed equity.

“Market makers provide liquidity for their assigned stocks by quoting at and improving upon the national best bid and offer (NBBO),” the NSE added.