NSE sets new Minimum Operating Standards for dealing members

From Ngozi Onyeakusi, Lagos

The Nigerian Stock Exchange (NSE) has set new minimum operating standards for all Dealing Members licensed by the bourse effective January 1, 2015.

The new standards cater for all three classes of Dealing Members (Broker Dealers, Brokers and Dealers) and address the five broad areas of Manpower and Equipment; Organizational Structure and Governance; Effective Processes; Global Competitiveness; and Technology.

According to Ms Tinuade Awe, Head of the Exchange’s Legal and Regulation Division, the NSE has undergone tremendous transformation over the last couple of years and intends to extend these

forward-moving traits to the Dealing Members.

“”Our objective is to transform the operators now with set minimum operating standards in a concise manner that is both easy to comprehend and implement. We intend to ensure that the Broker Dealers,

Brokers and Dealers have very robust controls, strong governance framework and sustainable operations that will enable them compete on a global scale for the benefit of the investors and the Nigerian capital market” said Awe.

“The capital market is very dynamic with a diverse mix of local and foreign investors who can invest with the confidence that the Dealing Members operate pursuant to clearly defined standards that are

comparable to those to which broker dealers in other climes operate.

We simply cannot afford to be inferior to anyone in terms of size, skill, technology or organizational governance of our market participants” she added.

Shedding more light on the benefits, Head of Broker Dealer Regulation, Mr Olufemi Shobanjo noted that “The investors will be given an extra degree of protection because the operators they will be dealing with will be very robust, strong institutions that are properly run with good controls and globally acceptable processes.”

“Another thing this also ensures is that the Nigerian capital market as a whole is sustainable with better investor confidence and even prospect companies that might want to list on The Exchange will be warmer towards us if a strong Dealing Member firm is able to give better information and better quality advise while aptly walking them through the process of listing in our market” he stressed.