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SEC Intervenes for Operators to Achieve FIX OMS Software Upgrade

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Securities and Exchange Commission (SEC) has unveiled an intervention fund aimed at assisting stock brokering firms and investment banks to upgrade to Financial Information Exchange (FIX) protocol software.

The so-called FIX Protocol is a free, open and non-proprietary messaging standard that was developed in 1992 by Fidelity Investments & Salomon Brothers to facilitate bilateral communications framework for equities trading.

FIX has metamorphosed many times in a bid to satisfy investor taste complexities. With growing local supports now expanding, the Nigeria space will leapfrog from local support vendors’ investments in FIX to ensure the proposed FIX platforms succeeds. 

Nigeria CommunicationsWeek investigations revealed that the palliative measure became necessary in view of inability of some capital market operators to upgrade to the software going by the mandate for them to recapitalize to N300million at almost the same time.

It was gathered that Nigeria Stock Exchange (NSE) has made the use of FIX Order Management System (OMS) technology mandatory for trading at the floor of the exchange. This has forced operators yet to upgrade to resort to trading under another operator that has upgraded thereby limiting their operation.

Amos Emmanuel, chief executive officer, Programos Software Limited- a major player in the implementation of the software at capital market space, said that the market is already using FIX OMS technology as some stockbroking firms have achieved the certification while others are at different stages on the process of using the recommended infrastructure.

He lamented the slow pace of migration which has lasted for more than three years now owing to downturn in the capital market.

“This intervention by the market regulator is a welcome development as it will help stockbroking firm without strong financial footing to achieve the upgrade and continue to be in business. With FIX OMS technology trading at Nigeria Stock Exchange is made very open and shareholders can as well monitor trading from their home or office,” he said.

He added that: “Many organizations have complied by acquiring the required software and communication technologies adequate for the FIX implementation. The good signs include that investor confidence will return to most implementing turbulent markets that may have previously experienced painful recessions, and market transparency will improved tremendously.”

Yele Okeremi, chief executive officer, Precise Financial Systems, said that the mandate to adopt the global standard of FIX protocol is a step in the right direction as it will allow indigenous software providers in the capital market to compete with foreign providers and as well give the local operators more opportunity to play on a global level.

He however, cautioned against some stock broking firm using the mandate to show preference for foreign software against the local ones.

He noted that it is security risk to allow foreigners control the country financial data now that they have taken control of our national data in the National Identity card scheme.

The software expert, urged capital market software providers to be intelligent and scale up their product to meet the adopted FIX protocol in order to consolidate their dominance in the capital market space.


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E-Financial

Lagos State Appoints MoneyMaster as Payment Partner for “Ounje Eko” Programme

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“Ounje Eko”, the food price discount initiative of the Lagos State Government, has appointed leading payment service bank, MoneyMaster Payment Service Bank Limited (MMPSB), as its collaborator in the bid to ensure ease of payments at the market.

MoneyMaster is one of the Central Bank of Nigeria-licensed Payment Service Banks (PSBs) to promote financial inclusion across Nigeria.

Under the partnership, MMPSB will apply its cutting-edge payment solution to engender easy payment and reconciliation in order to make   the experiences of Lagosians who will be getting their food supplies from the markets pleasurable. Its payment solution is also all-encompassing and ensures real time value to payment destinations.

The mobile bank was appointed as the collection and payment partner for “Ounje Eko” Food Markets programme which is a government initiative serving the five divisions of Lagos State. Consequent on this, MoneyMaster Payment Service Bank will collect payments in 57 LCDAs in the state.

The partnership gives credence to the quality of payment solutions that MoneyMaster is reputed for in its services to its growing business clientele in private and public sectors.

 


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E-Financial

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

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Central Bank of Nigeria (CBN), is investigating irregular foreign exchange transactions and forward contracts valued at approximately $2.4 billion.

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

The  inquiry follows an extensive audit by Deloitte, which scrutinized $7 billion in dollar debts accumulated under the bank’s previous leadership.

In the aftermath of the 294th Monetary Policy Committee meeting in Abuja, Yemi Cardoso, governor of CBN,  disclosed to journalists that the investigation, supported by the Economic and Financial Crimes Commission, among other security bodies, aims to clarify the legitimacy of these FX allocations identified as problematic by the audit.

“It was determined that a number of these transactions did not qualify…they were outright illegal. The law enforcement agencies are now looking into those transactions that as far as we are concerned, are not valid to be paid,” Cardoso detailed, emphasizing the unlawful nature of these forex deals.

The crux of the investigation lies in the audit findings that a significant portion of the scrutinized transactions lacked proper documentation and, in many instances, were deemed outright illegal.

However, the unfolding investigation has raised concerns within the organized private sector, with some entities contemplating legal action against commercial banks for unresolved forex bids.

Despite these tensions, Governor Cardoso reassures that the foreign exchange market remains open and transparent, inviting stakeholders to address their forex needs through the official channels.

Furthermore, Cardoso clarified the distribution of fertilizers to farmers as a one-off measure and not indicative of a shift back to direct interventions by the CBN, underscoring a commitment to strategic, regulatory governance rather than direct market involvement.

 

 

 

 

 

 

 

 


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CBN Urges Banks to Expedite Action on Recapitalisation

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Central Bank of Nigeria (CBN) has directed deposit money banks in the country to expedite action to increase their capital base from the current ₦25bn.

CBN Urges Banks to Expedite Action on Recapitalisation

Olayemi Cardoso, governor of CBN

Olayemi Cardoso, governor of CBN, stated this during the apex bank’s 294th meeting of the Monetary Policy Committee (MPC) on Tuesday in Abuja, when the MPC hiked the interest rate by 22.75% to 24.75%.

The apex bank chief said the MPC examined developments in the banking sector and expressed satisfaction that the industry remained stable. The committee, however, said to guard against risk, commercial banks in the country should accelerate their recapitalisation efforts.

Cardoso said, “The MPC also reviewed developments in the banking system and noted that the industry remains safe, sound, and stable. The committee thus called on the bank to sustain its surveillance and ensure compliance of banks with existing regulatory and macro-potential guidelines.

“The MPC also enjoined the banks to expedite actions on the recapitalisation of banks to strengthen the system against potential risks in an increasingly globalised world.”

 

 

 

 


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