By Aduragbemi Omiyale
The Nigerian Exchange (NGX) Limited has explained steps that can be taken to develop the Exchange Traded Derivatives (ETD) market in Africa for increased growth.
Speaking at a capacity building workshop of the CFA Society, South Africa, the Divisional Head of Capital Market at NGX, Mr Jude Chiemeka, said efforts must be made for more investor education and stakeholder collaboration to achieve this goal.
At the virtual event held on Tuesday, April 4, 2023, and themed Building and Scaling Derivatives Markets in Africa, the capital market expert said, “Enabling the development of the derivatives market on the African continent requires more investor education and capacity building.”
“Our markets are still in the nascent stages, and investors need to be aware of the risks and opportunities that are inherent to derivatives,” he added.
Commenting further, he said, “Stakeholder engagement and collaboration is also needed to catalyse growth.”
“At NGX, we have organised various capacity-building sessions in partnership with major stakeholders in the capital market to educate investors on the intricacies of the Exchange Traded Derivatives market.
“We also continue to drive conversations and regularly engage through forums and other marketplace development initiatives,” Mr Chiemeka said.
While making his presentation, he further explained that the Exchange Traded Derivatives market of NGX, which took off in April 2022 as West Africa’s first ETDs market, launched with the NGX30 and NGX Pension Index Futures contracts and currently has three accredited trading license holders and two clearing members actively participating.
