By Dipo Olowookere
The Debt Management Office (DMO) has announced the replacement of Stanbic IBTC Stockbrokers Limited as Government Stockbroker with CSL Stockbrokers Limited.
A statement from the DMO, which announced dropping Stanbic IBTC Stockbrokers, however, did not state the main reason it took this decision.
The company had been the main government stockbroker for its capital market transactions until it was replaced with CSL Stockbrokers Limited (CSL), a member of FCMB Group Plc.
The debt office said the appointment of CSL as the new Government Stockbroker was a further demonstration of its commitment to the development of the domestic market, in particular, promoting liquidity, as well as, growing and diversifying the investor base.
It explained that CSL selected for the job on the basis of an open competitive bidding process in which other stockbrokers participated.
“In their capacity as Government Stockbroker, CSL will build upon the achievements already recorded by increasing the participation of retail investors in all FGN securities (FGN Bonds, FGN Sukuk, FGN Savings Bond and Green Bonds) listed and trading on the NSE,” the debt office stated.
Business Post reports that Stanbic IBTC Stockbrokers Limited had served as the first Government Stockbroker with a mandate that includes posting bid and offer prices on the Nigeria Stock Exchange (NSE) for Federal Government of Nigeria (FGN) securities.
The Government Stockbroker supports the DMO’s objective of promoting trading of FGN securities on the NSE and attracting more retail investors to the domestic capital market.
