NGX, CIS, NGCL Plan Sustainable Initiatives Across Derivatives Market

The Nigerian Exchange Limited (NGX) says it is collaborating with the Chartered Institute of Stockbrokers (CIS) and NG Clearing (NGCL) to host a webinar that would deepen investors’ knowledge of the recently launched NGX Derivatives Market.

The webinar, themed “Exchange-Traded Derivatives: Enhancing the Capital Market for Robust Value Creation,” is scheduled as part of the Exchange’s capacity-building and market development, on Thursday, June 23.

According to a statement, the webinar builds on the Exchange’s market-leading initiatives to drive the derivatives market in Nigeria following the launch of the NGX Exchange Traded Derivatives (ETD) Market which was accompanied by the listing of two Equity Index Futures Contracts, NGX 30 Index Futures and NGX Pension Index Futures.

To promote clearing efficiency, stability, and confidence, The NGX ETD market was launched in collaboration with the premier Central Counterparty (CCP) in Nigeria, NG Clearing Limited, to provide the clearing infrastructure for NGX Derivatives Market and its clearing members.

The webinar, the statement added, will focus on the intricacies of derivatives futures contracts, including how the contract is traded and settled on a day-to-day basis, the margining process, and risk management issues.

Participants at the webinar will learn of various applications of equity indices and single stock futures contracts, including trading and arbitrage applications, and a range of investment fund applications, outlining the motivations for such transactions, how they are executed, and the rewards and risks involved.

The statement quoted Jude Chiemeka, Divisional Head, Capital Market, NGX, as assuring that the webinar will offer a platform to further sensitize market participants on The Exchange’s effort and commitment to developing a thriving derivatives market in Nigeria.

He added that the event will deepen the participants’ awareness on various applications of derivatives products, including equity index and single stock futures contracts, trading applications, arbitrage applications, and a range of investment fund applications.

Confirmed speakers at the webinar, the NGX said, include Oluwole Adeosun, President, CIS; Temi Popoola, Chief Executive Officer, NGX; Elile Olutimayin, Managing Director, CardinalStone Securities Limited; Farooq Oreagba, Partner, Karaho Capital Partners; Dr John Osuoha, Nigeria Country, Representative, CISI UK; and Ayokunle Adaralegbe, Chief Operating Officer, NG Clearing Limited.

The virtual event will be hosted on Zoom and livestreamed on the NGX’s YouTube channel.