Experts to Teach Ways to Trade Derivatives Futures Contracts
By Aduragbemi Omiyale
On Thursday, June 23, 2022, investors will learn from experts how to trade derivatives futures contracts at an event put together by the Nigerian Exchange (NGX) Limited in collaboration with the Chartered Institute of Stockbrokers (CIS) and NG Clearing (NGCL).
The programme, which is taking place online, is themed Exchange-Traded Derivatives: Enhancing the Capital Market for Robust Value Creation, and will kick off by 10 am, with registration required ahead via https://bit.ly/ngx-cis-dmw.
According to the organisers, 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.
Participants at the webinar will 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 are executed, and the rewards and risks involved.
Experts expected to speak at the event are Mr Oluwole Adeosun, President of CIS; Mr Temi Popoola, CEO of NGX; Elile Olutimayin, MD of CardinalStone Securities Limited; Mr Farooq Oreagba, Partner at Karaho Capital Partners; Dr John Osuoha, Nigeria Country Representative at CISI UK; and Ayokunle Adaralegbe, CEO of NG Clearing Limited.
The programme is majorly to deepen the knowledge of the investing public on the recently launched NGX Derivatives Market and is part of the exchange’s capacity-building and market development.
The NGX recently launched the NGX Exchange Traded Derivatives (ETD) Market and then listed 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 (CCP) in Nigeria, NG Clearing Limited, to provide the clearing infrastructure for NGX Derivatives Market and its clearing members.
Speaking ahead of the webinar event, the Divisional Head of Capital Market at NGX, Mr Jude Chiemeka, explained that the webinar will serve as a platform to further sensitize market participants on the bourse’s effort and commitment to developing a thriving derivatives market in Nigeria.
Additionally, he noted that the event will deepen the participants’ awareness of various applications of derivatives products, including equity index and single stock futures contracts, trading applications, arbitrage applications, and a range of investment fund applications.