‘Stock market: Exchange-traded derivatives set for launch’

INVESTORS in the global capital markets can expect the launch of West Africa’s first exchange traded derivatives on the Nigerian Stock Exchange (NSE) as soon as possible, following the registration of Nigeria Clearing by the Securities and Exchange Commission (SEC) as a premier central counter-party clearing house.

According to a statement by the NSE, the approval-in-principle will allow it launch ETDS supported by NG Clearing in the risk management process.

Also, the platform, set up by key players in the Nigerian financial industry including the NSE, central securities clearing system and top-tiered banks, will now allow NG Clearing
play a key role in the financial market ecosystem by driving the safety and stability of Africa’s global marketplace through efficient and timely settlement of derivative trades.

Capital market players, according to the statement, could expect NG Clearing to align with the highest standards of global best practices in delivering clearing and settlement services in order to improve the safety of the Nigerian financial market by delivering best-in-class post-trade services that manage counterparty credit risk and reduce systemic risk.