NGX Hints at Change in Securities Trading Patterns
By Aduragbemi Omiyale
In the next few months, securities trading patterns on the floor of the Nigerian Exchange (NGX) Limited by investors would witness changes, the Chief Executive Officer of the bourse, Mr Temi Popoola, has hinted.
Speaking on Business Morning Show on Channels Television last Tuesday, Mr Popoola said the exchange will carry out these changes through technology.
According to him, the major aim for this is to digitize securities investment and other market-related transactions to attract more investors, especially Generation Z, known as zoomers, the demographic cohort succeeding Millennials and preceding Generation Alpha.
“The exchange on its part is doing its bit to coordinate the activities of players across the entire investment value chain to create an experience where within the space of minutes, a transaction can be initiated and completed.
“This is particularly important given that the next generation of investors are typically on their mobile phones, and until we can meet them there the value we can deliver to them will be limited.
“Over the next few months, we expect to deliver some positive structural changes building on our existing activities in this regard,” Mr Popoola said on the programme.
The NGX chief stated that to achieve this goal, his team was working in sync with the apex regulator in the nation’s capital market, the Securities and Exchange Commission (SEC).
He expressed his excitement about the future of the bourse especially with the possibilities advancements in technology provide.
“We may not be able to wrap our minds around the potential that technology will open up to us, but I am confident that the exchange of the future is one that will offer a diversified range of capital raising opportunities, as well as sophisticated investment products that meet stakeholders’ needs,” he said.
According to him, the increase in domestic participation on the NGX in few months is a testament to the financial power of Nigeria as a whole, assuring that the exchange will look to drive local participation and at the same time, position itself to attract investments.
Mr Popoola disclosed that efforts are being made to attract more foreign capital, noting that, “While attracting foreign capital is largely based on the macroeconomic environment of the nation, NGX continues to address factors within its immediate control to provide a conducive environment for these investments.
“We recognise that investors look into the quality of the companies and asset classes available before making investment decisions.
“As such, we place significant emphasis on governance, as well as the rules guiding the behaviour of Issuers in our market.
“On the trading side, we also consider factors around the ease in settling transactions, resolving complaints, finding the right infrastructure and engaging the right intermediaries.”
Business Post reports that Mr Popoola was on the programme last week to speak on the journey of the exchange in 60 years.