CSCS lift suspension on margin trading

Proshare

-Commences Custody Accounts

 

PETER OBIORA

Proshare NI

June 11, 2008 at 16:27 GMT

 

The Central Securities Clearing System Limited (CSCS), through the Nigerian Stock Exchange (NSE) announced the lifting on the suspension based on Margin Trading today in Lagos Nigeria on the Floors of the NSE.

 

Kene Okafor, Market Controller, of the NSE made this announcement on behalf of the CSCS.  “We are pleased to inform you that the suspension placed on the suspension joint accounts have been lifted with immediate effect” 

 

“The operators of such accounts would henceforth be classified as Custody Accounts and not Margin Accounts” he affirmed.

 

Okafor further confirmed that while the operations of the Custody Accounts commences immediately, efforts are being made to strengthen the procedure inline with best practices.

 

Sola Oni, Principal Manager, Corporate Affairs of the NSE confirmed to Proshare NI that the suspension has been on joint accounts particularly by Financiers, the account has been renamed “Custody Accounts” and not “Margin Accounts” that has been erroneously referred to in the past.

 

“Suspension has just been lifted on joint accounts; particularly by financiers, but the account has been renamed Custody Accounts and not Margin Accounts that was erroneously referred to in the past” he affirmed.

 

For Samuel Olayemi, Managing Director/Chief Executive Officer (MD/CEO) Mainland Trust Limited, a Member of the NSE, Margin Accounts may not be different from Custody Accounts.

 

He affirmed that the condition in which the Custody Accounts was introduced has not been made open and this would be analysed by stakeholders to see the changes and what has been reintroduced.

 

Olayemi affirmed to Proshare NI that it will be better if Nigeria create its own way of doing things rightly rather than imitating the West. “We don’t have to dogmatically follow whatever they are doing there, our system is different from theirs” he said.

 

In another reaction, a dealing member of the NSE and source close to Proshare NI affirmed that the persistent drop in prices of stocks on the NSE was occasioned by illiquidity in the system.

 

The source further affirmed that the market has begun to appreciate as a result of this development.

 

With current development in the market analyst have observed that the prices of the stocks have gone up.

 

Further details on this are expected to be made public at an elaborate media briefing this Friday or Monday next week by Prof. (Mrs.) Ndi Okereke-Onyuike, Director General NSE.

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