By Dipo Olowookere
The Nigerian Stock Exchange (NSE) has vehemently kicked against the granting of access to unauthorised persons to its trading facilities by some brokerage companies.
In a circular to stockbroking firms on Monday, the stock exchange reminded those allowing this unlawful act that there is a rule against such, warning them to desist from it or be sanctioned.
The NSE said only authorised employees of stockbroking companies are allowed to use its trading platforms and are not permitted to share their log-in details and passwords with any other person.
“Further to the circular referenced NSE/LARD/BDR/CIR5/15/03/06, dealing members are hereby reminded of certain provisions in the Rulebook of the Nigerian Stock Exchange, 2015 (Dealing Members Rules) and its relevant amendments, which prohibit the sharing of access log-in details and passwords,” a part of the circular sighted by Business Post said.
The rules specifically frowned at unauthorised persons trading on platforms of the exchange; granting unauthorised persons access to trading facilities; disclosure of passwords to other users and unauthorised persons; and authorized dealing clerks not submitting their access control card upon resignation/or a change of designation.
The NSE, in the notice, reminded the stockbroking companies that they are responsible for the actions of their employees, warning that all their workers, who are not “authorized dealing clerks of the exchange are strictly prohibited from accessing the trading facilities of dealing members.”
It also said “the log-in details and password of authorized dealing clerks cannot be shared with other authorized dealing clerks or users” and that “upon the resignation of an authorized dealing clerk, the exchange should be duly notified in writing within 24 hours.”
It said, “Every dealing member is required to return to the exchange, the trading floor badge and access control card of an authorized dealing clerk upon his/her resignation/or a change of designation.”
“Dealing members are also reminded to adhere to the following rules and regulations governing dealing members;
“Rule 9.1: Responsibility for Employees’ Actions, Rulebook of The Exchange, 2015 (Dealing Members’ Rules) which provides that: without prejudice to any regulation, every dealing member shall be responsible for all the actions of its employees.”
“Rule 9.3: Supervision and Internal Controls, Rulebook of The Exchange, 2015 (Dealing Members’ Rules) which provides that:
“(a) Each Dealing Member shall establish and maintain a system to supervise and ensure compliance of the activities of its officers, stockbrokers and employees.
“Final responsibility for proper supervision rests with the Dealing Member. The supervisory system shall provide for written procedures to be established, maintained and enforced that are designed to supervise the types of business in which the dealing member is involved.
“The procedures must identify the individual supervisory persons, the Compliance Officer and their titles and qualifications. The dealing member shall have the responsibility and duty to ascertain by investigation the good character, business repute, qualifications and experience of any person assigned as stockbroker or employee directly involved in the securities business.”
The NSE further said “trading floor badges and access control cards remain the property of the exchange and shall be surrendered to the exchange upon the occurrence of any of the following: (1) Suspension (2) Revocation of registration (3) Resignation (4) Expulsion.”
