NGX, others move to drive derivatives market


The Nigerian Exchange Limited and other stakeholders in the stock market have expressed their commitment to boosting the Exchange-Traded Derivatives market.

A statement said the NGX, in collaboration with the Chartered Institute of Stockbrokers and NG Clearing, would host a webinar to deepen the knowledge of the investing public on the recently launched NGX derivatives market.

The webinar, themed ‘Exchange-Traded Derivatives: Enhancing the capital market for robust value creation’ would be held as part of the Exchange’s capacity-building and market development.

It said the event built on the Exchange’s market’s initiatives to drive the derivatives market in Nigeria, following the launch of the NGX Exchange Traded Derivatives Market, which was accompanied by the listing of two Equity Index Futures Contracts, NGX 30 Index Futures and NGX Pension Index Futures.

 “To promote clearing efficiency, stability and confidence, the NGX ETD market was launched in collaboration with the premier Central Counterparty in Nigeria, NG Clearing Limited, to provide the clearing infrastructure for NGX Derivatives Market and its clearing members,” it stated.

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The webinar will focus on the intricacies of derivatives futures contracts, including how the contract is traded and settled on a day-to-day basis, the margining process, and risk management issues.

According to the statement, participants at the webinar would learn of various applications of equity indices and single stock futures contracts, including trading and arbitrage applications, and a range of investment fund applications, outlining the motivations for such transactions, how they were executed, and the rewards and risks involved.

Speaking on the webinar event, the Divisional Head, Capital Market, NGX, Mr Jude Chiemeka, explained that the webinar would serve as a platform to further sensitise market participants on the Exchange’s effort and commitment to developing a thriving derivatives market in Nigeria.

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