NSE, ASHON Sign MoU on Commodity and Future Exchange
The Association of Stockbroking Houses of Nigeria (ASHON) has signed a Memorandum of Understanding (MoU) with The Nigerian Stock Exchange (NSE) as part of efforts for the seamless take-off of the proposed Lagos Commodity and Futures Exchange, (LCFE).
The MoU, which was signed in Lagos by Chairman of ASHON Chief Patrick Ezeagu and The CEO of NSE Mr. Oscar Onyema is aimed at creating professional and technical relationship between the two institutions for enhanced trading on commodities and futures.
Ezeagu explained that the MoU signed would enable LCFE access the superior technological capacity of the NSE as the oldest stock exchange in Nigeria.
According to him, LCFE would hit the ground running once it is able to perfect the registration process with the Securities and Exchange Commission (SEC).
Specifically, he said the strategic objective of LCFE was to have a technical partner that has the technical competence to enable it commencetrading immediately after the regulatory approval without setting up a new platform.
“What we have done is to tap on the existing capacity that is already at the NSE so with that we cannot get it wrong,†he said.
In his comments, Onyema said that the NSE was willing and well positioned to support capital market development and provide necessary expertise to other emerging exchanges around the continent.
“The ASHON has championed the establishment of the LCFE and this MoU that we signed positions the NSE to provide technology and other technical support to the LCFE. As you know, we do have a service that we use to provide such support for other emerging exchanges around the continent, given the expertise that we have developed over the years and so the significance is that we are supporting market development and we are providing expertise to make it easier and more cost effective for an exchange such as the LCFE to hit the ground running,†he said
Also speaking at the event, the acting Chief Executive Officer of the proposed LCFE, Mr. Akin Akeredolu-Ale said: “The NSE has strong capacity for trading in equities, derivatives and commodities .
The Central Securities Clearing Systems Plc (CSCS), which is tightly coupled with the Nigerian Stock Exchange, will enable seamless and smooth operations of the Commodity Exchange.
