Ten stockbroking firms in the country have been selected by the management of the Nigerian Stock Exchange, NSE to uphold the responsibility of primary market making in the Equity market.
The CEO of the Exchange, Oscar Onyema says at the bell ringing ceremony Wednesday that the selection process of the ten out of the twenty applications, entailed meeting the criteria of minimum of N570million net capital base; compliance history; operational capabilities and considerations on technological facilities.
Onyema stated that having gone through series of trainings and debates about the appropriate market structure to adopt, the Securities and Exchange Commission, SEC has granted its approval on the initiative.
He reiterated that while supplementary market makers would be welcome at a future point, for the moment, the primary market makers are more significant.
The ten qualified market makers include, Stanbic IBTC, Greenwich Securities, Renaissance Capital, CSL Stockbrokers, FBN Securities, WSTC, ESS/Dunn Loren, Future View, Vetiva, and Capital Bancorp.
Each of the selected stockbroking firm was required to select their basket of securities in a blind drawing ballot system. The new primary market makers were allotted twenty securities for trading.
Reacting to the action of the NSE, and commenting on the conferment of market making responsibility in the nations equity market, Dunn Loren Merrifield’s Vice President, Tola Odukoya says as a stakeholder in the initiative, the market should anticipate cutting-edge services from Dunn Loren Merrifield. He adds that given the quality of services evident in the precedence of the firm, liquidity is guaranteed as investors will therefore be able to come in and go out on stocks.
Similarly, the MD of FBN Securities, Bisi Oni confirmed that being selected as a primary market maker in the equity market is a matter of collective responsibility on behalf of the economy and the market. Oni noted that changes will be seen in deepening products offering, prices of securities and ultimately, provision of liquidity in the market.
Meanwhile, the management of the bourse has described initiative as a milestone with major step in turning the market around.