CBN commences on-line securities trading

Proshare

May 25, 2007/Tribune

 

 

 

<P class=MsoNormal style=\"MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify\">The Central Bank of Nigeria (CBN) has commenced on-line trading in money market instruments. The major participants in the securities trading are the 17 banks and the three discount houses appointed as money market dealers by the CBN. </P>
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<P class=MsoNormal style=\"MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify\">Speaking at the launching of the operational procedure for money market dealership system in <?xml:namespace prefix = st1 ns = \"urn:schemas-microsoft-com:office:smarttags\" /><st1:country-region w:st=\"on\">Nigeria</st1:country-region> and the inauguration of the CBN securities dealing room in <st1:place w:st=\"on\"><st1:City w:st=\"on\">Lagos</st1:City></st1:place> yesterday, the CBN Governor, Professor Chukwuma Soludo, said the arrangement would reduce recourse to underwriting of bills by dealers.</P>
<P class=MsoNormal style=\"MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify\"><o:p>&nbsp;</o:p></P>
<P class=MsoNormal style=\"MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify\">Soludo, who was represented by the Deputy Governor in charge of Operations, Dr. Shamusideen Usman, said the new system would enhance the liquidity of money market instruments, apart from supporting efficiency and effectiveness of the Open Market Operation (OMO).</P>
<P class=MsoNormal style=\"MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify\"><o:p>&nbsp;</o:p></P>
<P class=MsoNormal style=\"MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify\">In addition, he said the new on-line trading would assist in monetary policy implementation as it would be transparent and conform to international standards.</P>
<P class=MsoNormal style=\"MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify\"><o:p>&nbsp;</o:p></P>
<P class=MsoNormal style=\"MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify\">The CBN governor advised the money market dealers to study and adhere strictly to the provisions of the guidelines for the dealership in money market instruments, released in January and the operational procedure for money market dealership in <st1:place w:st=\"on\"><st1:country-region w:st=\"on\">Nigeria</st1:country-region></st1:place> launched yesterday.</P>
<P class=MsoNormal style=\"MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify\"><o:p>&nbsp;</o:p></P>
<P class=MsoNormal style=\"MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify\">He said the CBN would adopt zero tolerance for infractions of their provisions, adding that the CBN would always listen to complaints from the dealers.</P>
<P class=MsoNormal style=\"MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify\"><o:p>&nbsp;</o:p></P>
<P class=MsoNormal style=\"MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify\">Speaking earlier, CBN\'s acting Director of Operations, Mr. David Dada, explained that active securities market would enhance liquidity by engendering robust trading among market participants. <I style=\"mso-bidi-font-style: normal\"><SPAN style=\"FONT-SIZE: 8pt; COLOR: olive\"></SPAN></I></P>
<P class=MsoNormal style=\"MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify\"><o:p>&nbsp;</o:p></P

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