NSE releases list of market makers in Nigeria

LAGOS-Ten stock broken firms, today have been approved by the Nigerian Stock Exchange (NSE) to begin market making operations with a bid to revive the ailing market and restore investors’ confidence.

According to a statement by NSE, the firms include: Stanbic IBTC Capital, FBN Capital, Greenwich Securities, WSTC, Future View, Vetiva Capital Management, ESS/DunnLoren Merrifield, CSL Stockbrokers, Renaissance Capital and Capital Bancorp.

The 10 companies were selected from a number of 20 firms that applied. Each of them has been given the portfolio of 20 listed companies at the moment to make market in, the statement added.

The Chief Executive Officer, NSE, Mr. Oscar Onyema, described the unveiling of the 10 companies selected as a major landmark aimed at bringing back liquidity and depth into the second largest market in sub-Saharan Africa.
According to The NSE CEO “This is a great milestone and a major step in the direction of turning the market round to have liquidity and depth back into the market. We will continue to move forward on this.
  “The companies selected went through a very rigorous process and met the minimum net capital requirement of N570 million. We also examined their compliance history and looked into their operational capabilities including their technology and processes.”

“The selected firms were taken through trainings, debated the appropriate market structure to be used and The Exchange further went through the approval of the Securities and Exchange Commission (SEC) in the selection process” added Onyema.

The Exchange also promised that a number of firms will be selected to perform a supplementary Market Making role at a future date.

A market maker crates equilibrium in the stock market by buying shares overhang and offering same for sell when there is scarcity in order to create activity in the given stock.

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