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Tag: Nigerian Exchange Limited (NGX)

  • NGX reiterates commitment to upholding market transparency rules, regulations

    NGX reiterates commitment to upholding market transparency rules, regulations

    Nigerian Exchange Limited (NGX) reiterates its commitment to supporting the enforcement of regulations that enhances transparency in the capital market, by reminding investors to comply with rules on disclosure of substantial holdings in listed companies.

    Recall a circular to the market recently in which NGX stated that lack of appropriate disclosures by investors was a breach of its rules and other extant market regulations. According to NGX, the act also impacted market transparency and fairness as it creates information asymmetry. This, according to experts, could hamper price discovery, regulatory oversight and the accuracy of public disclosures.

    The Divisional Head, Capital Markets, NGX, Mr Jude Chiemeka noted that NGX is fully committed to maintaining the integrity and transparency of the Nigerian capital market.

    “We urge all investors to comply with our rules and regulations regarding the disclosure of substantial interests in listed companies. He added that refusing to comply with these guidelines creates information asymmetry, distorts public information and market data, and undermines the confidence of investors in our market. The Exchange will continue to take necessary actions to ensure compliance and promote a level playing field for all market participants.”

    The circular reminded investors of Rule 17.13 of the Rulebook of the Exchange, Issuers’ Rules, 2015, titled “Disclosure of Changes in Beneficial Ownership of Shares” which requires every Issuer to notify NGX immediately; about any transaction that takes the beneficial ownership of its shares to five per cent (5%) or more not later than ten (10) business days after such transaction.

    The circular also quoted the Rulebook’s section on free float requirements, Rule 2.2 which states, “Each Issuer shall incorporate in its half-year financial statement filed with NGX its shareholding pattern, and also indicate whether or not its free float is in compliance with NGX’s free float requirements for the Board on which it is listed.”

    Investors and all stakeholders are reminded to be guided by the provisions of the above NGX rules and circular. 

     

  • NGX Eyes Increased Savings Bonds Subscriptions, to Organise Webinar

    NGX Eyes Increased Savings Bonds Subscriptions, to Organise Webinar

    In line with its mandate to promote investor participation in Nigeria’s capital market, enhance the secondary market, Nigerian Exchange Limited (NGX) in collaboration with Afrinvest is set to host market stakeholders to a virtual workshop on FGN Savings Bond.

    The virtual event holding on Thursday, May 25, is aimed at bringing retail investors, trading license holders and regulators in the Nigerian capital market under a common forum to create awareness on the FGN Savings Bond product, enhance participation and liquidity of FGN Bonds in the Secondary Market.

    It will feature leading capital markets experts including the Director, Market Development at the Debt Management Office (DMO), Monday Usiade, Chief Executive Officer, CSL Stockbrokers, Biodun Fagbulu, Managing Director, Optimus by Afrinvest, Ayodeji Ebo and Jude Chiemeka, Divisional Head, Capital Markets, NGX. Also, Kalu Aja, financial planner and finance influencer will be moderating the scheduled panel session. Interested participants in the webinar can register here https://bit.ly/ngx_savbnd.

    The NGX Savings Bond webinar is expected to deepen the savings culture among retail investors; reduce the barrier to contributing to National development for all Nigerians irrespective of income level; provide insights that will enable participants benefit from the favourable returns available in the capital market; and improve liquidity of FGN Savings Bond in the Secondary market.

    It will be recalled that the DMO, on behalf of the Federal Government of Nigeria, launched a retail investment programme – the “Federal Government of Nigeria (FGN) Savings Bond” –to help enhance the savings culture among Nigerians while providing all citizens irrespective of income level, an opportunity to contribute to National Development; as well as the comparatively​ favourable returns available in the capital market. 

    FGN Savings Bond is safe and backed by the full faith and credit of the Federal Government of Nigeria, with quarterly coupon payments to bondholders. 

    According to a recent report, NGX saw N11.23 billion in Federal Government of Nigeria bond listings which constituted FGN Savings Bonds with maturities ranging between 2024 and 2026.

    Lagos State Government issued the only bond by a sub-sovereign entity with its N137.33 billion series 1V, 10-year 13 per cent, Fixed Rate Bonds due 2031 under its N500 billion debt issuance program.

    The corporate bond segment recorded N112.42 billion senior unsecured bond listing from Dangote Industries Funding Plc and N31.36 billion in Sukuk Issuances from Taj Bank and Family Homes under their respective Sukuk Issuance programmes.

    In the first quarter of 2023, Meristem Stockbrokers Limited topped the chart of the fixed income transactions by value as they occupied 16% of total value of trades with N143.71m in trades. Others in the top five were Arthur Stevens Asset Management (N132.91m), APT Securities (86.94m), SMADAC Securities (82.21m) and Apel Asset Ltd (59.15m).

  • NGX CEO, Popoola honoured with CIS Fellowship

    NGX CEO, Popoola honoured with CIS Fellowship

    The Chartered Institute of Stockbrokers (CIS) has inducted the Chief Executive Officer of Nigerian Exchange Limited (NGX), Temi Popoola as a Fellow of the Institute on Monday, 8 May 2023.

    Delivering his welcome address at the event, the President and Chairman of Council, CIS, Mr Oluwole Adeosun, FCS, stated that the Fellowship of the Institute was the highest category of membership. “For a member of the Institute to become a Fellow, the individual must, in addition to professional excellence, pass the moral and integrity tests with flying colours. This gentleman has done just that.”

    In his acceptance speech, Mr Temi Popoola, FCS, CEO of NGX, thanked the Institute’s board of fellows and the full council members for the great honor, and pledged to continue to uphold the institute’s core values. “I am extremely delighted because I am emotionally connected to this market and I am grateful for the support received from CIS since I became the CEO of NGX. At NGX, we strive to always incorporate CIS in our strategy as the Institute ranks high among our critical stakeholders,” he said.

    Popoola added that he is looking forward to working with CIS to engage the incoming government to drive policies that will reposition the capital market for growth.

  • NGX Group Becomes First Exchange Group Globally to Achieve EDGE Certification

    NGX Group Becomes First Exchange Group Globally to Achieve EDGE Certification

    Nigerian Exchange Group Plc (NGX Group) is pleased to announce that it has been awarded the EDGE certification, making it the first exchange group globally and the first indigenous Nigerian organization to be EDGE certified. NGX Group was certified at the EDGE Assess level, which highlights the progress the company has made on diversity, equity, and inclusion and its commitment to ensuring equal opportunities across its talent pool.

    EDGE, which stands for Economic Dividends for Gender Equality, is the leading global standard for Diversity, Equity, and Inclusion (DE&I), centred on a workplace gender and intersectional equity approach. The certification process involved employee surveys, analysis of group-wide workforce statistics, focus group discussions, and a rigorous third-party audit of all data provided by the company and its policies and practices related to diversity, equity, and inclusion.

    “We are thrilled to have achieved yet another first in our efforts to promote gender equality and champion Africa’s sustainable development,” said Oscar N. Onyema, OON, Group Chief Executive Officer, NGX Group. “This certification demonstrates our dedication to creating an inclusive, equitable, and diverse workplace. At NGX Group, we believe that diversity and inclusivity are fundamental to our success. With the EDGE certification, we now benefit from being verified against global best standards as we continually measure and benchmark progress around gender equality.”

    “From a governance standpoint, commitment to gender equality is not only the right thing to do but the best thing to do, as it drives better business results. As a central player in the capital market, we remain resolute in our effort to galvanise the ecosystem for sustainable impact through our wholly owned subsidiaries, Nigerian Exchange Limited (NGX), NGX Regulation Limited (NGX RegCo) and NGX Real Estate Limited (NGX RelCo), and other key stakeholders. This starts with building a workplace that is inclusive and equitable for all our employees”, stated Onyema.

    Kalim M. Shah, IFC’s Senior Country Manager for Nigeria, Liberia and Sierra Leone said, “Stock exchanges play a crucial role in driving gender equality in the private sector, unlocking business opportunities and promoting economic development. IFC is pleased to have supported the Nigerian Exchange Group as the first stock exchange globally to attain the EDGE Gender Certification, creating stronger transparency and accountability for its role in championing workplace gender parity in Nigeria, and serving as a model for other exchanges across Africa and globally.”

    Aniela Unguresan, Founder, EDGE Certification Foundation, said “Through the certification process, the Nigerian Exchange Group has strengthened its foundation for promoting gender equity in the organization. The attainment of the EDGE Assess Certification is a clear indication of the Nigerian Exchange Group’s commitment to implementing intentional, prioritized, and measured actions towards achieving greater gender equity in the workplace.”

    The EDGE certification is globally renowned for its extensive focus on analysing business practices through an impact lens. It lends further credence to NGX Group’s gender leadership in the capital market as it drives impact in partnership with International Finance Corporation (IFC) on the Nigeria2Equal (N2E) project. The conferment of EDGE Assess has also provided a quantifiable and qualitative outlook to the combined efforts of NGX Group of companies and IFC on closing the gender inclusion gap in the private sector and mainstream more opportunities for women, without leaving men behind. Gender champions under N2E can now follow the lead of NGX Group to enable better conditions for their workforce and push for equitable outcomes.

  • ETFs: Popoola Hints on Four Potential Listings, Investors Tackle Market Challenges

    ETFs: Popoola Hints on Four Potential Listings, Investors Tackle Market Challenges

    The Chief Executive Officer, Nigerian Exchange Limited (NGX), Mr Temi Popoola has said that the market would see a renewal in Exchange Traded Fund listings as four new ETFs were in the pipeline.

    This was echoed by Popoola at the recently completed ETFs conference themed “ETFs in the Nigerian Capital Market: Opportunities and Challenges” held on Wednesday, 19 April 2023. Giving his remarks, the CEO explained that the Exchange is leading the ETFs market in West Africa with a market capitalisation of N8.87bn ($19.25m), noting that the market is still in its nascent state, compared to the South African ETF market with a $7.11bn capitalization.

    “There has been a dearth of new ETFs listings on the NGX in recent years, however, there are bright spots on the horizon with 4 new ETFs listings in the pipeline. It is incumbent to state that current macro-economic challenges resulting in the exit of Foreign Investors, impacted the ETFs space which resulted in a sharp dip in the ETFs market Cap from 2020 highs of N24.5bn. We are hopeful that the policy tilt of the new administration would impact positively on our market.”

    Also speaking at the event was the Executive Commissioner, Operations, Securities and Exchanges Commission (SEC), Mr Dayo Obisan, who also touched on the challenges in the market but expressed confidence in the ability of experts to proffer solutions. He urged all stakeholders including the Fund Managers Association, NGX, and other institutional investors to extend the message of ETFs in order to deepen the market and make the asset class more vibrant, thereby driving growth in the capital market.

    Adeyinka Shonekan, the Executive Director, Central Securities and Clearing System (CSCS) Plc spoke on the CSCS’s developmental efforts in the ETFs market. He explained how the CSCS was using technology to improve the onboarding of retail investors into ETFs. “CSCS has been driving the initiative to reduce the settlement cycle from T+3 to T+2 or T+1 and we have been engaging stakeholders to make sure we make this a reality,” he added.

    Adele Hattingh, Manager, Business Development and Exchange Traded Products at the Johannesburg Stock Exchange, JSE, gave an overview of the South African ETFs market including why investors should consider investing in the asset class. The Managing Director, Vetiva Fund Managers Limited, Oyelade Eigbe, on her part also spoke on how retail investors could access the ETFs market in Nigeria and monitor their investments.

    During the panel session, capital market experts further addressed the opportunities and challenges of the market, with liquidity as a central topic of discussion. Featuring were Mr Aigbovbiose Aig-Imoukuede, President, FMAN, Oladele Sotubo, CEO, Stanbic IBTC Asset Managers, FBN Quest Capital and Nornah Awoh, Chief Equity Analyst/CEO, Palesa Capital Markets Associates.

  • NGX, stakeholders to recommend solutions on deepening ETFs market

    NGX, stakeholders to recommend solutions on deepening ETFs market

    Nigerian Exchange Limited (NGX) in collaboration with key capital market stakeholders will be organising a workshop to address the major challenges and opportunities in the Exchange Traded Funds (ETFs) market.

    The NGX ETFs Conference themed “ETFs in the Nigerian Capital Market: Opportunities and Challenges” will hold virtually on Wednesday, 19 April 2023 and will feature major players in the capital market including retail investors; regulators; pension fund administrators; fund managers Issuers; trading license holders and other institutional investors.

    “The conference will provide an overview of the ETF Securities framework in Nigeria and enlighten market participants on the regulatory framework of the Securities and Exchange Commission (SEC) around ETFs,” said Clifford Akpolo, Head, Marketing and Corporate Communications, NGX. “It also aims to resolve the challenges experienced by issuers in the Nigerian ETF market. We believe the conference will further complement our efforts to boost liquidity and increase retail participation in the capital market.” Interested participants can register through this link http://bit.ly/ngx-etfs-forum.

    Speaking at the event are Dayo Obisan, Executive Commissioner, Operations, SEC; Jude Chiemeka, Divisional Head, Capital Markets, NGX; Adele Hattingh, Manager, Business Development and Exchange Traded Products, Johannesburg Stock Exchange; Adeyinka Shonekan, Executive Director, Central Securities Clearing System (CSCS) Plc; and Oladele Sotubo, CEO, Stanbic IBTC Asset Management.

    Also featuring on the panel are Ike Onyia, CEO, FBN Quest Asset Management; Oyelade Eigbe, Managing Director, Vetiva Fund Managers Limited; Aigbovbiose Aig-Imoukhuede, President, Fund Managers Association of Nigeria and CEO, Coronation Asset Management; Nornah Awoh, Chief Equity Analyst/CEO, Palesa Capital Markets Associates. The panel would be moderated by Wole Famurewa, Markets Editor, West Africa, CNBC Africa.

  • NGX commends Otedola, Geregu for corporate governance, power sector leadership

    NGX commends Otedola, Geregu for corporate governance, power sector leadership

    Nigerian Exchange Limited (NGX) has commended the Chairman, Geregu Power Plc, Mr Femi Otedola, CON, and the firm’s Board for instituting best practices in corporate governance and playing a leading role in the country’s power sector.

    This was at the Closing Gong Ceremony commemorating the first Annual General Meeting of Geregu as a listed company on the Exchange. Since its listing on NGX, Geregu has added more than N800bn in market capitalisation to NGX as the market continues to price up its shares amid strong revenue generation and dividend yields.

    The Chief Executive Officer, NGX, Mr Temi Popoola highlighted the contributions and value that Geregu had brought to the capital market since its listing and also noted the quality of corporate governance exhibited by the firm. “Geregu was one of the first set of listed companies to file their annual reports on the Exchange. It has also contributed significantly to the volume of trades done on the market since its listing,” he said.

    On his part, Mr Otedola appreciated NGX for the platform provided to listed companies for their capital raising activities, and also the transformation of the Exchange through its demutualisation period. “We promise to sustain our partnership for many years to come and reiterate our commitment to best practices of corporate governance,” he added. The CEO, Geregu, Mr Akin Akinfemiwa also restated the company’s dedication to positioning itself to be more valuable to shareholders and the business community at large.

    The Group Chairman, Nigerian Exchange Group (NGX Group) Plc, Alhaji Dr Umar Kwairanga commended Mr Otedola for his longstanding contributions to the capital market. He also expressed optimism that the listing of Geregu as the first power-generating firm and its experience in the capital market would encourage other players in the sector to come and list on NGX.

    Mr Abubakar Mahmoud, SAN, OON, Chairman, NGX, represented by Erelu Angela Adebayo, Director, NGX, on her part said, “It is our hope that NGX and Geregu Power would continue to work together, to sustain our partnership, and consolidate our shared values for improved outcomes that will be beneficial to the market and the Nigerian economy.”

  • NGX, partners further advocate financial literacy for young Nigerians

    NGX, partners further advocate financial literacy for young Nigerians

    Nigerian Exchange Limited (NGX) continues to build on its advocacy of inculcating a culture of saving and investing in young Nigerians as it celebrates the 2023 edition of Global Money Week (GMW).

    The event was held at the Exchange on Tuesday, 21 March 2023, to raise awareness on the importance of ensuring that young people, from an early age, are financially aware, and are gradually acquiring the knowledge, skills, attitudes and behaviours necessary to make sound financial decisions and ultimately achieve financial well-being and financial resilience.

    NGX, Securities and Exchange Commission (SEC) and NGX Regulation Limited (NGX RegCo) partnered the Central Bank of Nigeria (CBN) to educate over 100 students on the theme, “Plan your money, plant your future”, to further enhance investor education and financial literacy.

    In his opening remarks, the Divisional Head, Capital Markets, NGX, Jude Chiemeka, spoke about the need to guide children in their formative years so as to be responsible citizens in the future. He emphasized that choices they make today will have a significant impact on their future.

    “We must also recognize that our individual financial health is closely linked to the health of the planet and of society as a whole. The choices we make about how we earn, spend, save, and invest our money can either contribute to or undermine the sustainability of our world. As such, it’s essential that we all adopt a responsible and informed approach to financial decision-making that considers the impact of our choices on our environment and society.”

    Speaking on other NGX-led financial literacy initiatives, Mr Chiemeka noted that beyond offering a range of educational resources, the Exchange has a comic book series named NGX StockTown with the goal of using illustrations to raise the next generation leaders who are financially aware, responsible and skilled economic citizens.

    The celebration culminating in a Closing Gong ceremony had the overall winners at the quiz session held at the Exchange close the market by sounding the gong. They were also gifted shares with the first prize winner receiving N80,000 worth of shares while the first and second runner-ups won N70,000 and N50,000 worth of shares respectively.

    Mr John Achile, Principal Manager, Market Development Department, SEC and Mr Abubakar Albasu, Principal Manager, Head of Advocacy Office, Consumer Education and Evaluation Division of Consumer Protection, CBN, highlighted the importance of market regulation and investors protection. Mr Abimbola Babalola, Head, Market Surveillance and Investigation, NGX RegCo, delivered a presentation on the rudiments of money and the technicalities of the capital market.

    Mr Abdulkareem Kelani, Sales Trader, Meristem Stockbrokers and Mr Mohammed Jamie, Head, Securities Dealing, APT Securities also contributed to improving the students’ knowledge capacity about the stock market. Other partners at this event were MinieMoney, AIESEC Lagos and Junior Achievement Nigeria (JAN).

  • NGX, CBN, SEC to Promote Financial Literacy with Global Money Week

    NGX, CBN, SEC to Promote Financial Literacy with Global Money Week

    As Nigeria joins countries around the world to celebrate the annual Global Money Week, Nigerian Exchange Limited (NGX) and the Securities and Exchange Commission (SEC) will be supporting the Central Bank of Nigeria (CBN) with a series of educational programs and events aimed at enhancing financial literacy in children and youths whilst driving financial inclusion.

    A Financial Literacy Talk will be held at the Exchange on Tuesday, 21 March 2023 with secondary school students from across the country in line with this year’s theme “Plan your money, plant your future.” The session will cover topics on personal finance and investing, trading with technology on the stock market, and the role of regulation in the capital market. These will then culminate in a Closing Gong Ceremony, where the students will “Ring the Bell” for Global Money Week.

    Also planned by NGX as part of activities for the week, is a Twitter Spaces session that will hold on Saturday, 25 March 2023 by 7:00pm to educate youths, including Millennials and Generation Zs on responsible investing. This will have a focus on sustainable products in the capital market and making the right financial decisions that consider the environment, society and spur economic growth.

    The Head, Marketing and Corporate Communications, NGX, Mr Clifford Akpolo, speaking on the sidelines with our correspondent, said, “NGX, as the sustainable exchange championing Africa’s growth recognizes the potential of a financially literate youth population which is crucial to drive economic development. The Exchange places a high value on providing young people with the necessary resources to make informed financial decisions and is dedicated to supporting initiatives that promote sustainable spending habits and financial literacy. Our activities for the week have been structured to have an optimal impact and reach thousands of young Nigerians, both online and offline.”

    Partnering with CBN, SEC and NGX on its Global Money Week Initiatives are Miniemoney; Meristem Stockbrokers Limited and APT Securities Limited.

    Global Money Week is an annual global celebration initiated by Child & Youth Finance International (CYFI), with local and regional events and activities aimed at inspiring children and youths to learn about money, saving, creating livelihoods, gaining employment and becoming entrepreneurs. It also aims to empower the next generation to be confident, responsible and skilled economic citizens.

    “Plan your money, plant your future,” the official theme of GMW2023, is aimed at raising awareness about the importance of adopting a responsible, informed and forward-looking approach in making financial decisions. It also recognises that future individual financial well-being is strictly linked to the health of the planet and of the society as a whole.

  • Africa Plus Partners lists carbon mitigation fund on NGX

    Africa Plus Partners lists carbon mitigation fund on NGX

    In another significant move towards championing sustainable investing in Africa, Nigerian Exchange Limited (NGX) is pleased to announce the listing of Africa Infra Plus Fund (AIPF I), a ₦20.5bn closed-end infrastructure fund, on the Exchange, on Tuesday, 24 January 2023 commemorated with a Closing Gong Ceremony.

    Co-managed by Africa Plus Partners Plc, and Capitaltrust Investments & Asset Management Limited, AIPF 1 is Nigeria’s first Carbon+ (ESG-focused) naira-denominated infrastructure fund to be listed on the Exchange. AIPF 1’s structure is a pool of equity and quasi-equity investments in Carbon+ infrastructure projects that promote sustainable development including, but not limited to roads, power, water supply, wastewater management, ports, and airports. The Fund also acquires the shares and other investment instruments issued by socially responsible entities carrying on infrastructure business or executing infrastructure projects exclusively.

    Commenting on the development, the Chief Executive Officer, NGX, Mr. Temi Popoola, stated that, “today’s listing marks a significant milestone in our commitment to promoting sustainable investing and reducing the drivers and impact of climate change. We are proud to be at the forefront of this and look forward to more exploits as we drive growth in the capital market.”

    Speaking to members of the media, Africa Plus Partners Chairman, Anhad Narula said, “This is a sustainable infrastructure fund that specialises in carbon mitigating infrastructure investments. The fund, whose investors include ordinary Nigerians via their pension fund administrators, is committed to investing in sustainable infrastructure businesses that align with the global energy transition and move towards cleaner sources of energy and efficiently run, sustainable infrastructure and utility services.”

    On his part, the Managing Director, Africa Plus Partners Plc, Mr Adeniran Ajakaiye, stated, “With this listing, we aim to demonstrate the highest levels of good governance and transparency, as we continue to deliver active returns to shareholders, whilst addressing Nigeria’s ‘missing middle’ infrastructure gap.”

    AIPF aims to address the imbalance between the need for infrastructure development and the concerns about environmental and social impact by investing in projects that meet strict ESG criteria. The listing of the fund on NGX is a clear indication of the growing interest and demand for sustainable investing in Africa and the Exchange’s commitment to the same. NGX also plans to launch an Impact Board to further give visibility to sustainable financial instruments listed on The Exchange and to encourage more listings in the sustainable finance segment as part of its sustainability drive for the capital market.

  • Filmmaker, Adetiba, closes market on high note as NGX soars by 19.98%

    Filmmaker, Adetiba, closes market on high note as NGX soars by 19.98%

    The Nigerian Exchange Limited (NGX) marked the final trading day of the year on 30 December 2022 with a Closing Gong Ceremony featuring renowned filmmaker Kemi Adetiba.

    Adetiba, the founder of Kemi Adetiba Visuals and director of critically acclaimed movies “Wedding Party” and “King of Boys,” which was later adapted by Netflix, had the honour of closing the market for the year on the trading floor of the Exchange. During the ceremony, NGX CEO, Temi Popoola spoke about the exchange’s impressive year, despite facing global macroeconomic challenges and volatility.

    “It’s been a fantastic year for NGX, with a positive 19.98% return,” said Popoola. “We’ve also seen several landmark listings in equity and fixed income, including BUA Foods and Geregu Power, which have played a key role in driving growth in the market this year.”

    Popoola went on to praise Adetiba for her exceptional contributions to the entertainment industry. “Kemi Adetiba has truly put Nigeria on the map with her incredible movie successes,” said Popoola. “We’re excited to explore partnerships with the entertainment industry to catalyse its growth and bring even more success to the country.”

  • African Exchanges Linkage Project (AELP) Goes Live on Cross-border Trading

    The AELP has today gone live on integrating the African capital markets by facilitating cross-border trading and free movement of investments in the continent through the AELP Link platform. The go-live happened when the platform was officially switched on at 0000 UTC. The interconnectivity platform enables the trading of exchange-listed securities across 7 participating securities exchanges.

    Commenting on the go-live, the ASEA President, Dr. Edoh Kossi Amenounve said “The go-live today of the AELP Link is a great milestone towards achieving ASEA’s mission to engage African capital market ecosystems in order to foster capital mobilization, promote sustainability, and enhance financial inclusion for the benefit of Africa’s economic development. Trading infrastructure harmonization through the Link is expected to ease existing trading processes and potentially reduce the cost of trading across African capital markets. I, therefore, congratulate all the participating exchanges and the respective brokers for being front-runners in this great pan-African integration initiative”.  

    Speaking on the successful live integration of the AELP, the Chief Executive Officer, Nigerian Exchange Limited (NGX), Mr Temi Popoola lauded the efforts of stakeholders in the actualization of the project and said, “The AELP Link is a testament to the will of African capital market participants, particularly exchanges to effectively collaborate and drive cross-border trading and capital formation. It will significantly facilitate capital flows between African countries and further move us closer to the accomplishment of the goals of the African Continental Free Trade Area Agreement via the fusion of our respective financial markets.”

    The AELP, a flagship project of the African Securities Exchanges Association (ASEA) and the African Development Bank (AfDB) is aimed at facilitating cross-border trading among seven participating Exchanges and select broker firms.

    The seven Exchanges participating in Phase 1 of the AELP are: Bourse Regionale des Valeurs Mobilieres (BRVM), Bourse de Casablanca, The Egyptian Exchange (EGX), Johannesburg Stock Exchange (JSE), Nairobi Securities Exchange (NSE), Nigerian Exchange Limited (NGX), and Stock Exchange of Mauritius (SEM).

    In July 2021, ASEA signed a contract with DirectFN Ltd for the design and implementation of the AELP Link trading system in the seven markets. The Link which is hosted on the Oracle Cloud Infrastructure (OCI) has been designed to integrate with exchange and broker trading systems, and is available in English, French and Arabic. It aggregates live market data from the Exchanges and enables brokers to access information and see the market depth and liquidity of the foreign market of interest.

    Stockbrokers and Securities Dealers are critical stakeholders in the Linkage process. Through the coordination of the Exchanges and the African Stockbrokers and Securities Dealers Association (ASSDA), each exchange will connect 5 stockbrokers or securities dealers to the AELP Link.  In the first phase of the project 33 Stockbrokers have connected as at go-live.

    The selection of participating Stockbrokers and Securities Dealers was based on agreed criteria, and expression of interest by approved licensed dealing members from each of the participating Exchanges. The ASSDA Organizing Secretary, Mr. Willie Njoroge observed that “this is a historic moment for Africa, to finally actualize the linking of stock exchanges across Africa after many unsuccessful attempts over the last 2 decades.”

    The AELP test environment has been operational since July 2022 enabling the stockbrokers and securities dealers to familiarize themselves with the platform and execute mock trades. This culminated in the completion of the User Acceptance Testing on 7 November paving the way for the technical go-live today.

    The participating stockbrokers have already embarked on signing counterparty broker agreements between different markets. The sponsoring stockbrokers enable access to their domestic markets to sponsored stockbrokers from other markets and vice versa. The sponsoring broker will clear and settle trades in the host market using their local currency in compliance with the host market’s rules and practices. The regulatory bodies in all the participating markets are therefore apprised on the progress. Participating trading license holders from Nigeria are FBNQuest Securities Limited; Stanbic IBTC Stockbrokers Limited; Chapel Hill Denham; Cardinal Stone Securities Ltd; Cordros Securities Limited; and RMB Stockbrokers

    A ceremonial launch of Phase 1 and a demonstration of live cross-border trades will be held alongside the 2022 ASEA Annual General Meeting & Annual Conference on 7th December 2022 at 9:00am GMT in Abidjan, Cote d’Ivoire.

    Future phases of the project may include automated cross-border payment systems, participation of additional ASEA member Exchanges and their respective brokers and additional brokers from the current participating Exchanges after the pilot phase. Botswana Stock Exchange (BSE) and Ghana Stock Exchange (GSE) will kick off Phase 2 of the AELP with technical connectivity to the Link expected to commence in 2023.