UBA, Others Ink Agreement for OTC Market

Four settlement banks appointed by the National Association of Securities Dealers (NASD) which include United Bank for Africa UBA) Plc, Guaranty Trust Bank Plc, Access Bank Plc, and Sterling Bank Plc have signed an agreement with Central Securities Clearing System (CSCS) preparatory to the commencement of operations in July.

The NASD is approved by the Securities and Exchange Commission (SEC) to operate an over-the-counter (OTC) in Nigeria, which investors in unlisted companies can trade their securities.

Directors of CSCS, the NASD and the four settlement banks signed the agreement for the CSCS to act as clearing and depository for NASD trades.

Mr. Emmanuel Onokpasa, treasurer, UBA Plc, signed the agreement on behalf of UBA on June 10, 2013 at a ceremony which held at the office of NASD located on the 9th floor of UBA House in Lagos.

The objective of the NASD Limited is to facilitate the secondary market trading of all non-quoted securities in the West African region and also in the process stimulate capital market growth.

The company brings together issuers, investors, accredited dealers, stockbrokers, banks, central clearing systems, private equity and venture capital firms and depositories with a view to increasing liquidity in the non-quoted segment of the long term funding market.