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Online Trading Ranking Report 2020: The Market - A Hawk's View

Online Trading	2190 VIEWS
Online Trading
2190 VIEWS

Friday, September 04, 2020 / 05:20 AM / By Proshare Research / Header Image Credit: EcoGraphics

The market refers to the various trading spaces where equity, debt, exchange-traded funds and foreign exchange assets are bought and sold to clear available supply at discovered prices; the asset classes sell in organized digital settings.

The broad categories of tradable assets in the financial market include:

Fixed Income Securities and Bonds
Listed Equities
Mutual Funds, ETFs and REITs
Foreign Exchange
Commodities; and
Foreign Exchange

The debt market has become the single most important market in the domestic financial system, but equities remain relevant even if for the purpose of diversifying investor portfolios and providing an inbuilt pro-cyclical growth opportunity. The unlisted securities market has remained relatively small but has the potential for growth if retail action by way of digital trading and remote market price discovery intelligence strengthen. The unlisted securities market (NASD) as of 2019 had a market turnover of less than 0.8% of total market value. Digital trading activity could scale up traded volumes in 2020 and improve market liquidity.

Market trading activities in 2020 may have been affected by two contending factors moving in opposite directions. The slow growth in the economy with real GDP rising by +1.87% in Q1 2020 down from year end (FYE) 2019 growth of +2.55%, combined with tumbling interest rates and supply chain disruptions in the United States and Europe the outlook for equities in the domestic Nigerian market is mixed. Nigeria's equities market has had a difficult half year in 2020 though the debt market has tayed buoyant as the federal government continues to finance a ballooning debt position (N28trn by June 2020) through the commercial fixed income market to cover short-term fiscal obligations. The slow market dynamics for equities have led more CMOs to seek ways of muscling down operating costs and client management expenses by adopting technology and digital trading platforms.