In a rear display of ingenuity and clear understanding of options for survival at post-COVID-19 pandemic, a panel of seasoned capital market operators has identified strategic investment opportunities to boost income streams of Securities Dealers on the Nigerian bourse.
But the engaging five-man panel, who spoke at Chartered Institute of Stockbrokers’ Mandatory Continuous Professional Development (MCPD) Webinar, titled “Opportunities for Stockbrokers: Post COVID-19 Pandemic”, advised Securities Dealers to do a lot more in enhancing their skills and competencies with a stern warning: Market ultimately belongs to those who embrace pro-active and innovative business strategy under the new normal.
Mr. Jude Chiemeka, the lead speaker and The Exchange’s Divisional Head, Trading Business, made a comprehensive presentation on the Conference Theme and posited thatCOVID-19 pandemic had imposed on all professionals, the need to review business models and reinvent the wheel if need be.
“The markets will continue to move in cycles in response to economic policies and global news flow. This volatility creates opportunities for market participants to benefit from bursts of short-term market swings over the long-term, albeit the ability to innovate and use newer market tools such as Exchange Traded Funds (ETFs), Securities Lending, Hedging Solutions and a host of others to ride these movements in the market will differentiate market participants.
“The operating environment has changed very dramatically in adjustment to the impact of COVID-19. The lockdown has resulted in a paradigm shift of what work should look like and the need for companies to re-invent their working models from this perspective. To thrive in times like this, market intermediaries need to embrace more innovative and pro-active strategies to ride the wave.
“ Stockbrokers have a role to play in deepening the products traded in the market by facilitating cross-listings of securities existing in other markets that help investors achieve their diversification and hedging needs, issuance of unsponsored Depository Receipts, currency tracking ETFs, access to international markets such as technology and health care.”, Chiemeka said.
Corroborating him, Mr. Akeem Oyewale, chief executive officer, Stanbic IBTC Nominees, who noted that the new generation of investors would be financially literate, maintained that stockbrokers should be scouting for business opportunities beyond Nigeria.
“Income stream of brokerage firms has become challenging as the market is largely dominated by top ten Dealing Member Firms. There is a compelling need for shared resources and cost optimization on the part of market operators.
“The demutualization of The Nigerian Stock Exchange is expected to present robust opportunities. We shall witness mergers and acquisitions. We should be looking outside our shores for business opportunities.
“There are dormant products on The Exchange, including Collective Investment Scheme (CIS) and Securities Lending. These also present business opportunities. The next generation of Stockbrokers should be ready to manage financially literate investors.”, Oyewale enthused.
Mr. Akin Akeredolu-Ale, managing director and chief executive officer, Lagos Commodity and Futures Exchange (LCFE), advised stockbrokers to go back to the drawing board in the areas of innovation and creativity to maximize business opportunities that post COVID-19 shall provide.
