Wednesday, March 21, 2018 /11:45 AM / NSE
an assessment of the current market structure, the Nigerian Stock Exchange
(”The Exchange”) is embarking on changes to its equities market structure in
order to create an optimal market design that facilitates improved market
depth, liquidity provision and price efficiency. The new market structure will
create a level playing field for all market participants, and allow for the
creation of new trading strategies. Specifically, Market Makers, and other
Dealing Members will be able to participate across all trading sessions, to
further support competitive pricing, reduced spreads, and best execution.
in most advanced markets the market structure is made available as a manual to
market participants, currently, The Exchange’s market model has been codified
into the Rulebook
of The Exchange. However, matters like the structure and timing of trading
sessions, market intermediary roles, trading operations, parameters,
responsibilities, restrictions etc. are matters that may sometimes require
swift amendments in order to address market exigencies. The codification of
these matters in The Exchange’s Rulebook is at odds with flexibility and
swiftness with which changes may be required to be made to these matters as
market circumstances dictate.
careful consideration, The Exchange is of the view that the interests of the
market will be better served if certain of these are taken out of its Rulebook
and fulsomely addressed in a living document to which amendments can be more
flexibly and nimbly effected. It is envisaged that certain provisions will
still remain in the Rulebook with appropriate amendments.
order address the impacted portions that we propose to remove from the Rules,
has developed a Market Model and Trading Manual for Equities Market (Manual).
Manual will provide the standard guidance for trading of equities on The
Exchange, and it will be reviewed as The Exchange deems appropriate from time
to time. On the effective date of the new market structure, the Manual will be
published on The Exchange’s website, as obtains in other markets.
light the foregoing, The Exchange is proposing amendments to its Dealing
Members' Rules in its Rulebook by deleting certain portions of the following
chapters of the Dealing Members' Rules:
a. Chapter 3: Trading
and Exchange Operations; and
b. Chapter 8: Market
Summary of the Proposed Amendments
Chapter 3: Trading and
Exchange Operations: as part of the proposed
changes to the equities market structure, the following portions of Chapter 3
of the Rulebook (Dealing Members’ Rules) are to be deleted:
Rule 15.2: Extension or
Reduction of Trading Times - deletion of paragraph (b) onopening and closing
time for trading sessions on The Exchange.
Rule 15.23: Trade Types -
deletion of paragraph (b) on order entry parameters.
Rule 15.24: Order Entry
and Execution - deletion of the entire Rule.
Chapter 8: Market Making: Paragraph (a) of Rule 24:6 on the obligations of Market Makers with
respect to filling of orders is to be deleted from the Dealing Members’ Rules.
Invitation for Comments
line with best practice, The Exchange is exposing the aforementioned Manual,
for stakeholders’ comments. The Exchange is pleased to invite you to
participate in the commentary process for developing the Manual.
The Exchange also wishes to invite your participation in the process of
reviewing the proposed Amendments to the Dealing Members’ Rules and providing
your comments thereon.
Exchange views your participation as important for the following reasons:
To create public awareness and solicit the
public’s feedback on the Manual and the proposed Rule amendments; and
To improve the quality of the Manual and the
proposed Rule amendments and thereby have a robust, well written Manual
and set of Rules.
are involving as many stakeholders as possible in this commentary process in
order to achieve the aforementioned goals. Please be assured that your comments
will be considered in arriving at the final text of the Rules.
Response and Timeline
will be grateful to receive your comments not later than the close of business
on Wednesday, 18 April 2018. Your comments
should be set forth in a WORD document attached to an electronic mail to Mr.
Oluwatoyin Adenugba, Head, Rules and Interpretation at The Exchange at firstname.lastname@example.org.
note that the draft Rules are subject to the approval of the National Council
of The Exchange, and the Securities and Exchange Commission.
A copy of the Equity Manual
may be viewed through the link provided here
Also, A set of the proposed Rule amendments may be viewed through the
link provided here.
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