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The Nigerian Exchange (NGX) is mapping out the Exchange Traded Derivatives (ETDs) Market and advancing with a free training held on Wednesday, 7 April 2021.
NGX Divisional Head, Trading Business, Mr Jude Chiemeka was the host of the derivatives market training which was attended by firms who had signed up to engage when it launches in the next months.
The NGX collaborated with members of NG Clearing (NGCL) Limited – the Central Counterparty Clearing System – for the training which provides insight into the upcoming launch of the derivatives market.
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More so, Derivatives Margining Process and Account Segregation Policy was the main focus of the training. The training further introduced participants to Clearing (NGCL) Members.
The Nigerian Exchange, NGX derivatives market
As part of its capacity-building plans for capital market stakeholders, the NGX is working to establish the optimal regulatory and legal framework for derivatives in the Nigerian capital market.
NGX has worked with local and international partners, the host of the training noted. Among its local partners are the Securities and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN).
The SEC also collaborated with NGX to host a previous training that addressed the legal and regulatory requirements for the derivatives market.
The NGX anticipates investors with a widespread understanding of derivatives, their applicability, and value.
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The first set of equity-linked products would most likely be futures with the best global practices. This would allow foreign & domestics investors and investment managers to appropriately hedge against downside risk.
Facilitators of the training include Ms Chidinma Chukwueke-Okolo (NGX) and Chief Operating Officer, NGCL, Mr Ayokunle Adaralegbe.
The NGX is likely going to have more derivative training for other stakeholder groups in the future, reports say.
