NG Clearing Acquires Software for Smooth Derivatives Trading

By Aduragbemi Omiyale

Efforts are being made underground to ensure that the trading of derivatives in Nigeria is seamless and at par with advanced climes.

Already, the country’s premier central counterparty, NG Clearing Limited, has collaborated with a leading software development firm, Mantissa Infotech Private Limited, for the development, implementation and maintenance of bespoke clearing and settlement technology for its operations.

Mantissa has a vast experience and end-to-end capability in providing a suite of bespoke technology solutions to leading exchanges and clearing houses in India.

The firm has provided both the trading and the clearing and settlement software for 14 years to the National Multi-Commodity Exchange of India Limited (NMCEIL), which was the first national-level commodity exchange in India until NMCEIL was merged with Indian Commodity Exchange Limited (ICEX) in 2018.

NG Clearing expects that with Mantissa developing software for it, investors in Nigeria interested in the derivatives market will enjoy the seamless transactions.

The platform designed for NG Clearing by Mantissa will support the clearing and settlement of derivative instruments across various asset classes i.e., futures and options contracts on indices, equity shares, commodities, currency, rates etc.

“We are very excited about this deal, as the deployment of the technology platform puts us in a position to commence operations as soon as we receive final approval from the SEC.

“The technology platform will support the clearing and settlement of derivative instruments across various asset classes i.e., futures and options contracts on indices, equity shares, commodities, currency, rates etc,´ the Managing Director of NG Clearing, Mr Tapas Das, stated.

NG Clearing is promoted by the Nigerian Stock Exchange (NSE) and the Central Securities Clearing System (CSCS) Plc along with key stakeholders like the Nigeria Sovereign Investment Authority (NSIA), Access Bank Plc, Consonance Kuramo Special Opportunities, Coronation Merchant Bank Limited, Greenwich Merchant Bank Limited, Union Bank of Nigeria Plc, United Bank for Africa Plc and Association of Securities Dealing Houses in Nigeria.

In September 2020, the Securities and Exchange Commission (SEC) approved in principle for NG Clearing to clear and settle exchange-traded derivatives instruments and presently awaits the SEC’s final approval to commence operations.