Building on the successes achieved in 2015, the NSE remained steadfast in the execution of its strategy despite the challenging environment. We also ramped up our engagement with Government at various levels to advocate for market friendly policies and initiatives that can drive economic recovery. Highlighted below are milestones achieved in 2016:
Demutualization: Concluded due diligence process, established member relations desk and credible member register, and developed a roadmap to demutualization. We have had several engagements with key stakeholder groups (eg: Exchange members, SEC, NASS, CAC, etc.). Derivatives: Established corporate vehicle for a Central Counterparty clearing house (CCP), engaged legal and financial advisers to support launch of the CCP, and engaged extensively with key stakeholder groups (NASS, CBN, SEC, CSCS, Bankers’ Committee, Dealing members, etc.), and started derivatives product development. Monetization of Market Services Suite: Launched thirteen (13) new products and implemented the first market data conference in Nigeria, with additional plans to onboard first set of clients for the regulatory consulting services business. Competitive Price Structure: A pilot fee structure for fixed income products was launched and the development of a market wide framework has reached an advanced stage.
Domestic/ Foreign Investor Drive
Product Launch: Launched a Vetiva S&P Nigerian Sovereign Bond ETF. Workshop Events: World-class workshops for fixed income, ETFs and market data products. Stakeholder Engagement Events: Held a number of key stakeholder events including two (2) NSE/LSE dual listings conferences in Lagos and London with key policymakers in attendance; CEO roundtable in collaboration with Bloomberg; and Nigerian Capital Market Information Security Forum. International Events: Hosted the Building African Financial Markets (BAFM) capacity building seminar held outside South Africa for the first time; the Nigerian capital market sustainability seminar in partnership with the Global Reporting Initiative (GRI) and Ernst and Young (EY); and the International Executive Development Program (IEDP).
Investor Protection SMARTs Technology: Launched SMARTs solution for efficient/effective market surveillance. Minimum Operating Standards (MOS): 94% of Dealing Member firms achieved NSE’s MOS. Investor Protection Fund: 83 claims valued at N27.8Mn approved for payment in 2016. Compliance Status Indicator (CSI): Launched CSI symbols for near real-time tracking of compliance status of listed companies. Corporate Governance Rating System (CGRS): Rolled out CGRS to all listed companies. Direct Cash Settlement (DCS): Played key role in implementation of DCS for the market.
Essay Competition: 7,400 entries from over 250 schools and over N3.2Mn won in prizes. Global Money Week: Reached 2,433 students from 24 secondary schools. Corporate Challenge: Held the third edition with over 700 participants and N30.5Mn raised. NSE Employee Volunteering Scheme & Give-Back: In its 2nd year, employees donated time and resources to upgrade Wesley School for the hearing impaired children, and other charities across the country. International Women’s Day: Symposium held with the Deputy Governor, Lagos State, Mrs. Idiat Adebule. Financial Literacy Tour: Reached 15,413 beneficiaries (7,456 students) through 151 programs.