NGX holds training for stakeholders on derivatives

The Nigerian Exchange Limited on Wednesday conducted a training for firms on key areas of the derivatives market.

The training, with focus on ‘Derivatives Margining Process and Account Segregation Policy, held in collaboration with NG Clearing Limited, the Central Counterparty Clearing System.

In a statement to Financial Street, the NGX said in laying the groundwork to build a standardised derivatives market, it has to work extensively with local and international partners.

It noted that the NGX’s Divisional Head, Trading Business, Mr Jude Chiemeka, had said that the NGX was committed to building a derivatives market that meets global standards.

“We have worked with regulators such as the Securities and Exchange Commission and the Central Bank of Nigeria to establish the right regulatory and legal framework for derivatives in our market.

“We also continue to build on the trading infrastructure that will ensure domestic and foreign stakeholders are able to trade seamlessly once we launch within subsequent months,” it quoted Chiemeka to have said.

The NGX further stated that the ultimate goal was to ensure widespread understanding of derivatives, its applicability and how investors could reap maximum value from the asset class.

The organisation said it has collaborated with both local and international organisations to facilitate in-depth capacity-building programme on the derivatives market.

It recalled that in 2020, a training was hosted in collaboration with SEC to address the legal and regulatory requirements for the derivatives market.

“A virtual derivatives workshop also held in September 2020 with the theme, ‘Adopting Derivatives During Stressed Market Conditions’ which provided a better understanding of the application of derivatives in hedging against the crisis emanating from the COVID-19 pandemic,” it added.