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NSE Unveils New Market Makers, Adjusts Circuit Breakers

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Nigerian Stock Exchange (NSE) will this morning April 2, unveil supplementary market makers expected to complement the activities of primary market makers introduced in September, 2012.

Today also, the circuit breaker for all quoted stocks on the NSE would move 10 per cent upward to ensure liquidity in the capital market.

Circuit breaker is the percentage at which a price of any quoted company can move up or down on daily basis.

Ade Bajomo, executive director for Market Operations, had at press briefing recently said that th exchange would ensure there is no limit to the number of supplementary market markers, adding that whoever qualifies would be picked.

He said that the minimum requirement for each supplementary market maker would be N250, 000 and that the exchange had received 20 applications.

Bajomo also said that the NSE will as from April increase the maximum daily price limit to 10 per cent for all equities listed on the Nigerian bourse.

At present, about 52 stocks that are in the market making basket record daily price swing of 10 per cent, while others outside the basket record only five per cent.

Bajomo explained that all equities will record a maximum price movement of 10 per cent either up or down.

According to him, the decision to raise the price limit was informed from the feedback received in the six months of the market making programme, which he said would enter the second phase in April.

He disclosed that apart from adopting a new price limit, the NSE will also unveil supplementary market makers to complement the efforts of the 10 price market markers appointed last April to commence the programme last September.

The executive director said that the introduction of market marker initiative had increased the market liquidity and the number of retail participations.

Bajomo said that the NSE daily average volume transactions had increased from 17 million dollars in 2012 to 25 million dollars by March due to the market making initiative.

Before now, only market making stocks were allowed to move up to 10 per cent while others remained at five per cent during transactions.

The NSE introduced market makers in 2012 to settle buy order imbalances from customers through the provision of liquidity.

Market makers are rated according to the level of liquidity support they provide.

“When the market making programme started, we said the roll out for the first phase would be for six months. That we have completed and we moving to the second phase. By first week of April, we will announce supplementary market makers while the price limit would be increased for all stocks across board,” he said.

Explaining further, the Head Products Management, NSE, Dipo Omotoso, said 23 stockbroking firms applied to be appointed supplementary market makers.

According to him, each supplementary market maker is expected to have a net capital of N250 million as against the N500 million requirement for primary market maker.

“We received 23 applications and the successful ones would be announced after going through their compliance history and other required checks. Unlike the primary market makers, the supplementary market makers would enjoy 50 per cent NSE fee waiver compared with 100 per cent waiver enjoyed by primary market makers,” he said.


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FG Makes u-Turn on Bank Account Re-Registration

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Federal government on Friday apologised for asking all account holders in financial institutions in the country to re-register their personal details.

FG makes u-Turn on Bank Account Re-Registration

Recall that the federal government had on Thursday ‎ordered that all persons holding accounts across financial institutions and insurance firms should complete and submit self-certification forms to their respective financial institutions.

The notice issued by the government to that effect read, ‎“This is to notify the general public that all account holders in Financial Institutions (Banks, Insurance Companies, etc.) are required to obtain, complete, and submit Self – Certification Forms to their respective Financial Institutions.

“Persons holding accounts in different financial institutions are required to complete and submit the form to each one of the institutions. The forms are required by the relevant financial institutions to carry out due diligence procedures, in line with the Income Tax Regulations 2019.‎”

The directive raised eyebrows, as account holders already possessed Bank Verification Numbers.

Following widespread condemnation that trailed the directive, the Federal Government backtracked on Friday, saying the fresh guidelin‎e was not for all Nigerians.

The government attributed the development to misinformation.

The clarification issued by the government on Friday read, ‎“We apologise for the misleading tweets (now deleted) that went up yesterday, regarding the completion of self-certification forms by Reportable Persons. The message contained in the notice does not apply to everybody. ‎FIRS will clarify Nigerians on the objectives of the directive.”

Also on Friday, FIRS, in a statement posted on Twitter, explained that the guidelines were only for non-residents, as well as people paying tax in more than one country.

Parts of the FIRS statement read, “The Self Certification Form is basically to be administered on Reportable Persons, holding accounts in Financial institutions, that are regarded as “Reportable Financial Institutions” under the CRS.

“Reportable persons are often non-residents and other persons, who have residence for tax purposes in more than one jurisdiction or country.”

“The information that indicates an account holder is a resident for tax purposes in more than one jurisdiction, is expected to be available to Financial Institutions during account opening processes, for the KYC and AML purpose.”


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Stanbic IBTC Bank Disowns Lagos ATM Fraudster

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Stanbic IBTC Bank PLC has disowned Tope Olajide, 22-year-old fraudster arraigned for theft of customers deposits.

Stanbic IBTC Bank Disowns Lagos ATM Fraudster

The Bank said this in a statement on Wednesday.

The statement said: “The attention of the management of Stanbic IBTC Bank PLC has been drawn to news currently circulating in the media, about the alleged arraignment of staff of the Bank on charges bordering on the theft of customers deposits.

“The Bank would like to clarify that the defendant, a 22-year-old Tope Olajide, IS NOT, and was at no point in time an employee of Stanbic IBTC Bank PLC.

“The alleged culprit was apprehended around 7:30 am, on Thursday, 27 August 2020, by security operatives after he was exposed by CCTV footage using ATM cards he had allegedly stolen and converted, to make withdrawals from the accounts tied to the stolen ATMs.

“The CCTV footage also showed the alleged culprit pretending to assist customers at ATMs whilst also attempting to fraudulently dispossess the customers of their ATMs.

“He was subsequently arraigned before an Ikeja Magistrate Court on Monday, 14 September, for stealing the debit cards of two customers and using them to unlawfully withdraw the sum of N427,000.

“The Bank would also like to implore members of the public to be security conscious when conducting transactions at ATMs. Customers are advised to report any suspicious actions around them to security operatives who are usually stationed around the Bank’s ATMs, when carrying out transactions at any of our ATM locations.

“As an organisation, we hold dear the values of integrity, and we will continue to prioritise the safety of our customers effectively.”


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Buhari Okays Establishment of CBN-Led Infraco

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President Muhammadu  Buhari has approved the establishment of an   Infrastructure Company (Infraco) to be driven by the Central Bank of Nigeria (CBN) in partnership with the African Finance Corporation (AFC) and the Nigerian Sovereign Investment Authority (NSIA).

Buhari Okays Establishment of CBN-Led Infraco

Mr. Godwin Emefiele, CBN governor

This is coming  on the heels of the foreign reserves’ slump to $36 billion following a cocktail of monetary policy interventions by the apex bank to cushion the scathing effects of the COVID-19 pandemic on the economy.

Mr Godwin Emefiele, CBN governor, made these disclosures in Abuja at the annual conference of the Chartered Institute of Bankers of Nigeria (CIBN) with the theme: Facilitating a Sustainable Future: The role of Banking and Finance.

According to him, Infraco would enable the use of private and public capital to support infrastructure investment that will have a multiplier effect on growth across critical sectors.

“This entity would also be able to raise funds from the capital markets and mobilise long term finance to address some of our infrastructure needs, while providing reasonable returns to investors. “We believe this well-structured fund can act as a catalyst for growth in the medium and the long run. The support of the banking community will be important in achieving this objective.

“A well-built infrastructure system, comprising hard infrastructure such as roads and ports, and soft infrastructure such as broadband penetration, can have a multiplier effect on growth by enabling the expansion of business activities in the country”, he explained.

On foreign reserves, Emefiele attributed its crash to the decline in foreign exchange earnings and subsequent adjustments in the value of the naira to the dollar.


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