NSE, J. Streicher Advisory Partner on Capacity Building for Market Makers

The Nigerian Stock Exchange (NSE) in partnership with J. STREICHER Advisory LLC, one of the top NYSE Designated Market Maker organized training for NSE Market Makers and at The Stock Exchange Building in Lagos in the third week in January. 

The three-day training which was informed by the realization that the operations of any organization are better run where proper structures and processes are put in place, was aimed at enhancing the knowledge of the trading industry, orders and order properties, market structures, order driven markets, informed traders and market efficiency, order anticipators, bluffers and market manipulation, market making tools, risk management, best practices, technology amongst others. 

Mr. Dipo Omotoso, Head, Product Management of The Nigerian Stock Exchange, said that the training is to give NSE Market Makers an enhanced and broadened knowledge of market making with a glimpse of how it is done in other jurisdictions. 

“Global best practice has made it imperative for Capital Market Operators to be adequately informed and educated about the importance of market making to enable them institute high ethical values for the benefit of investors, their stakeholders and the communities in which they operate” explained Omotoso. 

It was revealed by Mr. Thomas Brown the CEO of J. Streicher & Co. that Market Makers in general add liquidity to the market depth and continuity of the bourse will improve with this training and will benefit listed companies and investors. 

Feedback from the participants was quite encouraging as some of those interviewed expressed their pleasure at the Nigerian bourse’s training initiative. “I think this training is a very good one, the skills they’re teaching us today and in the next few days is to ensure that brokers here can understand the importance of Market Making and how they can go about it” noted Chief Executive Officer, Partnership Investment Plc, Mr. Victor Ogiemwonyi.  

Mr. Biodun Adeniran, Head, Risk & Compliance of Vetiva Capital Management Limited, also gave his approval for the training by stating that he saw the training as an opportunity for our people to sharpen their skills, especially the capital market operators and those that are involved in market making operations. “This clearly helps in broadening the scope in terms of the market knowledge that happens in other parts of the world where the players are on top of the game.” Adeniran added. 

It can be recalled that The NSE introduced Market Making in April 2012 as one of the initiatives designed to facilitate market recovery. Since the introduction of market-making program, there has been a general restoration of investor’s confidence in the Nigerian Capital Market.

The Market has witnessed increase liquidity in market making stocks and also given rise to increased market participation rates by local investors.