Adedapo Adesanya
By Adedapo Adesanya
The Association of Securities Dealing Houses of Nigeria (ASHON) has advised its members to start deploying new strategic directions that will enable them to cope with the challenges of their operating environment.
The advice was given during ASHON’s recently held Annual General Meeting (AGM) for the fiscal year that ended December 31, 2021.
The Chairman of the association, Mr Sam Onukwue, also used the occasion to advise members to ensure the speedy implementation of their new business models in order to widen their scope of operation and deliver superior products and services to numerous customers.
Mr Onukwue said: “We came into office some six months after the demutualization of the erstwhile Nigerian Stock Exchange (NSE), which signalled a paradigm shift in the operating focus of the exchange. This also redefined our status from dealing members to trading license holders and shareholders, as well as necessitated some adjustments to our operating model. It, therefore, became imperative for us to be proactive in guiding our members.
“To this end, the council organized a retreat themed Rethinking the Business of Securities Dealing in a Changing Market Structure. Participants at the retreat included council members, trustees, and past chairmen of ASHON.
“In the retreat, the need for our members to reposition, restructure and upscale their businesses to cope with post-demutualization challenges was identified. The role and impacts of technological advancement on our businesses were critically noted.”
He further noted that ASHON engaged with the Securities and Exchange Commission (SEC) on several issues, including an unprecedented increase in the renewal of annual registration fees of Capital Market Operators (CMOS), participation in the commission’s Financial Literacy Committee and holding of quarterly meetings with Central Securities Clearing Systems PLC, and NG Clearing.
According to him, ASHON continued to maintain a cordial working relationship with the NGX Group, despite the changes in its operating models as a demutualized exchange. The association has also been working closely with Nasd PLC, FMDQ, and Lagos Commodities and Futures Exchange (LCFE) for seamless trading of its members on the platforms of the various markets.
Mr Onukwue noted that the Association has continued to collaborate with the Chartered Institute of Stockbrokers (CIS) on a range of issues, including the CISI Bill, review of the ISA Act, reintroduction of Capital Gain Tax (CGT), and admission of CFA holders among others.
He explained that in order to remain a strong voting block in the demutualized Exchange, ASHON was already working on a voting trust arrangement.
He stated that ASHON had continued to play active roles in the ongoing initiative of African Stock Exchanges on the African Exchanges Linkage Project, which began a few years ago.
