As part of its resolve to enhance investor participation in the Nigerian capital market, boost secondary market liquidity, and facilitate savings mobilization to drive economic growth, the Nigerian Exchange Limited (NGX) is to partner the Securities and Exchange Commission (SEC) and National Pension Commission (PENCOM) for a Securities Lending Webinar on August 9, 2023 at 10am.
A statement by the NGX defined securities lending as “the market practice of temporarily transferring securities, for a fee, from their holder (the lender) to another party (the borrower), with the borrower agreeing to return the securities to the lender either on-demand or at the end of the agreed loan term.’
Themed, “Business Facilitation Act 2023 as a catalyst for deepening Securities lending in Nigeria,” the webinar brings together various stakeholders, including retail and institutional investors, Pension Funds Administrators, Fund Managers, Exchange Traded Fund Issuers, Trading License Holders, Regulators, and intermediaries in the Nigerian capital market.
“They will have the opportunity to gain insights into the securities lending landscape, product features, benefits for investors and intermediaries and the broader capital market. To participate, interested individuals can register for the free webinar at http://bit.ly/ngx-slw,” the statement by the NGX added.
The event, supported by the Central Securities Clearing System Plc (CSCS), Cardinalstone, Stanbic IBTC Nominees, and the Pension Fund Operators Association of Nigeria (PENOP), boasts an impressive lineup of speakers, offering insights and expertise from various key players in the Nigerian financial landscape.
Among them are: Temi Popoola, the Chief Executive Officer of NGX; Babatunde Majiyagbe, the Chief Executive Officer of Stanbic IBTC Nominees; Abdulkadri Abass, the Director of Registration, Exchanges, Market Infrastructure, and Innovation at the SEC; Oguche Agudah, Chief Executive Officer of PENOP; and Ibrahim Kangiwa, Head of Investment Supervision at the National Pension Commission (PENCOM).
Other speakers include Aigbovbioise Aig-Imoukhuede, the President of the Fund Managers Association of Nigeria; Peter Omoregie, CEO of CardinalStone Securities; Ms. Ronke Ayegbajeje, Relationship Manager at Stanbic IBTC Nominees; Ms. Onome Komolafe, Divisional Head of Business Services and Client Experience at CSCS; and Simi Ojumu, Head of Sales at Absa Securities.
The practice, the statement stressed, usually requires the borrower to collateralize the transaction with cash or other securities of a value equal to or greater than that of the lent securities, in order to protect the lender against counterparty credit risk. Securities lending plays an important role in capital markets by providing liquidity, which in turn reduces the cost of trading and promotes price discovery.