NGX to Engage Stakeholders on Guarding against Sharp Market Fluctuations

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By Aduragbemi Omiyale

On Wednesday, August 31, 2022, stakeholders in the Nigerian capital market gather for a virtual event organised by the Nigerian Exchange (NGX) Limited to educate participants on steps being taken to guard against sharp market fluctuations.

In 2016, the NGX Index Circuit Breaker was introduced and on November 12, 2020, it was triggered for the first time when the All-Share Index (ASI) surged beyond the 5 per cent threshold.

Circuit breakers are trading halts used by exchanges to guard against sharp fluctuations in the market and are designed to give the market an opportunity to take a break and adjust to all available information before re-opening the market.

Once a circuit breaker is applied, no order can be placed until the trading resumes. However, existing orders can be withdrawn or cancelled but cannot be modified. Trading halts will not affect the clearing, settlement and depository operations for matched trades, which will function as normal.

Tomorrow’s webinar will serve as a platform for receiving information on certain procedures to follow after the first and second trigger of the Circuit Breakers.

The programme, which is themed Role and Impact of Index Circuit Breakers in the Capital Market, will feature leading capital markets experts across the globe including the Vice President of Research at CBOE Holdings Inc, Chicago, William Speth, Financial Economist, World Federation of Exchanges (WFE), Kaitao Lin, and Jude Chiemeka, Divisional Head, Capital Markets, NGX.

It is positioned to bring together Market Operators, Asset Managers, Pension Funds Administrators, banks, retail investors and regulators, with registration required via https://bit.ly/ngx-circuit-breaker-webinar.

The NGX Circuit Breaker webinar is consistent with the exchange’s commitment to providing avenues for engagement on its various products and services, with the aim to enhance stakeholders’ knowledge and deepen capital market activities.

Capital markets continue to be impacted by economic headwinds; leading to volatility that if not checked could adversely affect the market. Accordingly, Circuit Breakers are designed to ease any unusual volatility in the market that may cause investors to panic.

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