The Nigerian Stock Exchange (NSE) has disclosed that it will soon launch its first derivative product after the NG Clearing limited received approval in principle from the Securities and Exchange Commission (SEC) to launch clearing and settlement of exchange-traded derivatives products as Nigeria’s premier Central Counter Party (CCP) house.
This was disclosed by Chief Executive Officer, NSE, Oscar Onyema, while speaking to newsmen during the NSE’s 2020 Market Recap/2021 outlook yesterday in Lagos.
Onyeama also said plans are underway for the listing of ordinary shares of the Nigerian Exchange Group holding group (NGX Group Plc) and its emergent subsidiaries for public trading at the stock market.
The NGX Group Plc was created as the parent company for the NSE and its operating structures with its three operating subsidiaries – Nigerian Exchange Limited (NGX), the operating exchange; NGX Regulation Limited (NGX REGCO), the independent regulatory arm; and NGX Real Estate Limited (NGX RELCO), the real estate company – forming the group.
He said the listing of the shares is expected to be the first order business once the exchange gets approval of the ongoing demutualisation (conversion).
He added that its listing will be by introduction – a process that allows the scheme shares from the demutualisation of the exchange to be listed for public trading without initial public offering (IPO) while noting that the timeline of activities will run smoothly with the receipt of all major regulatory approvals.
On the outlook of the market, the NSE CEO said the exchange expects the marginal reopening of businesses, normalisation of the economy and revenue diversification drive of the Nigerian economy to elicit positive sentiments throughout the year.
He however called for caution on the nation’s growth expectation, stating that the second wave of COVID-19 in Nigeria and indeed globally, may slow down renewed social and economic activities
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