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The Nigerian Stock Exchange will focus on the continued development of its technology ecosystem, along with the advance of its exchange-traded derivatives and securities lending markets, according to its 2022 Market Outlook, presented yesterday.
Securities lending activity grew 440 per cent by value to N513 million (US$1.2 million) in 2021, up from N95 million in 2020 and N340, 000 in 2019.
NGX completed its demutualisation in March 2021, establishing a non-operating holding company, the Nigerian Exchange Group (NGX Group) which has three operating subsidiaries, its operating exchange (Nigerian Exchange Limited, NGX), its regulatory arm NGX Regulation Limited (NGX RegCo), and its real estate company NGX Real Estate Limited (NGX RelCo).
The exchange has registered seven derivatives contracts with the Nigerian Securities and Exchange Commission in advance of the launch of its exchange-traded derivatives service.
It has now completed user acceptance testing for its derivatives instrument set up and trading systems and recently completed integration with the central counterparty clearing service offered by NG Clearing.
More broadly, NGX announces that its 2022 roadmap will promote a digital transformation agenda that will focus on building end-to-end digital platforms, drawing on partnerships with market intermediaries, to enhance the distribution of capital market products and services that support financial inclusion.
In line with this proposal, NGX has released a framework for the launch of an ESG board designed to attract impact investments to the exchange.
