New Telegraph

Access, Dangote, GTB, Zenith, others listed among NGX’s Derivatives Contracts

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Nigerian Exchange Limited (NGX) said it has received approval for seven derivatives contracts from the Securities and Exchange Commission (SEC) on Monday, 28 June 2021. The approved contracts are Access Bank Plc Stock Futures, Dangote Cement Plc Stock Futures, Guaranty Trust Bank Plc Stock Futures. Others on the list are MTN Nigeria Communications Plc Stock Futures, Zenith Bank Plc Stock Futures, NGX 30 Index Futures, and NGX Pension Index Futures.

The announcement by the NGX follows the successful registration of NG Clearing by SEC, as a premier Central Counterparty, effective 7 June 2021. “With these approvals, NGX is inching closer to launch West-Africa’s first Exchange Traded Derivatives supported by NG Clearing in the risk management process,” the statement said. Ahead of the launch of derivatives, the Chief Executive Officer, NGX, Mr. Temi Popoola, CFA, noted that, “The launch of the derivatives market aligns with our commitment to build a market that thrives on innovation and responds to the needs of stakeholders in accessing and using capital.

We are, therefore, excited about the prospects of deepening Africa’s position in the global financial markets through ETDs, as well as enhancing liquidity and mitigating against price, duration and other financial risks that may arise from sophisticated financial transactional activities.” Leading up to the launch of ETDs in the market, NGX has continued to ensure widespread understanding of derivatives, its applicability and how investors can reap maximum value from the asset class. NGX has collaborated with both local and international organisations such as SEC, JPMorgan Chase, CBOE Options Institute, and NG Clearing to facilitate in-depth capacity building programme on the derivatives market. In addition, through its learning and development arm, X-Academy, NGX has hosted trainings to prepare capital market players who wish to undertake the Chartered Institute for Securities & Investment UK Global Derivatives qualification exam, and is on track to host further trainings for other stakeholders in the near term.

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