Nigerian Alternate Restricted (NGX) and NG Clearing Restricted on Thursday February 29, 2024, enabled deeper understanding of the Single Inventory Futures product within the Alternate Traded Derivatives market with a digital workshop.
Learn additionally: NGX says positioned to widen retail buyers participation in capital market
Jude Chiemeka, performing CEO Nigerian Alternate Restricted Derivatives whereas giving his welcome remarks famous that derivatives play a vital function in world threat administration, with over 90 p.c of main firms utilizing them. “The derivatives market continues to develop quickly, reaching $39.17 billion by 2027.
“In Nigeria, the NGX Derivatives Market is positioned to drive innovation and diversification within the monetary sector, providing a clear platform aligned with worldwide requirements. In the present day’s webinar, themed ‘Understanding the Buying and selling of Single Inventory Futures’, serves as a beacon of enlightenment, illuminating the pathways to unlocking worth on this dynamic asset class.”
Talking on the Central Counterparty’s function in managing the buying and selling infrastructure, Farooq Oreagba, CEO NG Clearing emphasised the significance of analysis and evaluation to buyers earlier than embarking on buying and selling futures. “Simply as there may be leverage on the upside, there may be leverage on the draw back.
“As regards market oversight and transparency, our operations division at NGCL is at alert and sees all market positions earlier than market opening to make sure operators don’t exceed their limits.”
Oluwole Adeosun, president of the Chartered Institute of Stockbrokers said, “That is an thrilling interval for our market. As buyers and gamers we must be acquainted with the principles and laws guarding the market and likewise replace our information on the derivatives market.
“CIS has over time offered mental management within the conduct and observe of finance, securities and funding in Nigeria. The Institute is ready greater than ever earlier than to play this function of aiding capability constructing for this market and the brand new product, Single Inventory Futures.”
Seinde Adenagbe, 1st Vice Chairman, Affiliation of Securities Dealing Homes, representing the Chairman, Sam Onukwue famous that it’s pivotal for securities sellers to keep up belief to make sure the arrogance of buyers out there. “Derivatives are a contract that consumers and sellers should meet their obligations. This contributes to market integrity. Introducing extra merchandise like single inventory futures is essential to the depth of the market as we have to create one other pool of funding for our buyers.”
