The Nigerian Stock Exchange (NSE) has improved its fixed income securities market segment as well as the associated benefits on its platform.
This is just as the fixed income market capitalisation has increased from N12.9 trillion at the end of 2019, to N16.4 trillion, showing a jump by 27 per cent.
The NSE disclosed this in a statement.
The Exchange had introduced a trading fee moratorium to stimulate activities and liquidity in the fixed income market as part of its liquidity-enhancing efforts.
And following the end of the 4-year Fixed Income Securities Trading Fee moratorium, the exchange received the regulatory approval of the Securities and Exchange Commission (SEC) to revise its fee structure.
Hence, a revised fee structure would become effective today.
Under this revised fee structure, the exchange would charge 0.0005 per cent (N5 per million) on debt instruments traded on its platform.
The NSE said it offers a hybrid market for the execution of quote and order-driven transactions providing dealers as well as institutional and retail investors access to increased liquidity in fixed income securities.
“By leveraging best-in-class market design and infrastructure, the NSE trading venue provides investors integrated straight-through trading and post-trade process that supports efficient execution without any trade failures across all asset classes including fixed income securities. Investors trading via the NSE platform can also enjoy access to diverse listed debt instruments including federal government, state government, corporates, supranational and retail savings bonds,” the exchange said.
It added that it continues to conduct various training, workshops and conferences on fixed income securities products to build domestic capacity and enhance financial literacy while encouraging inclusiveness.
“We remain committed to our corporate goal of providing investors and businesses a reliable, efficient and an adaptable exchange hub in Africa, to save and to access capital,” the NSE said.
In line with efforts to further build capacity and enhance investors’ participation in the fixed income market, the NSE will host a two-day webinar on this Wednesday and Thursday for capital market stakeholders. The webinar which is in collaboration with the Debt Management Office and CSL Stockbrokers.
The webinar will be hosted by the Chief Executive Officer, NSE, Mr. Oscar Onyema and is expected to feature the Director-General, Debt Management Office, Ms. Patience Oniha as well as other industry players.
According to the exchange, the sessions have been designed to enhance dealing member firms’ understanding of the debt market structure, trading techniques, bond pricing, and the settlement of bond trades. On the part of the investing public, the workshop will highlight the opportunities and benefits in the fixed income market.