The Association of Securities Dealing Houses of Nigeria (ASHON) and National Association of Securities Dealers ( NASD) Plc have commenced talks on strategic partnership in the area of trading in securities and market development.
As a prelude to this emerging relationship, the governing Council of ASHON had recently held a closed door meeting with the management of NASD, the first In the series, on a range of issues, including product development, the need for more engagement of NASD with stockbrokers, compliance officers, risk managers and other key market participants, involvement of stockbrokers in NASD’s various committees and regular quarterly meeting between the two institutions among others.
“ ASHON has started engagements with all Exchanges and Trade points in Nigeria in order to expand the scope of operations and the income stream of her Members. We are extending this new initiative to include other markets outside Nigeria as evident in our participation in the formation of the African Stockbrokers and Securities Dealers Association (ASSDA) which is part of the African Linkage Project.
“ We want to formally engage the management of NASD on how we can improve and streamline our relationship through regular discussion with the utmost aim of improving the market. The 4th Industrial Revelation is powered by Fintech and there is a need for us to be ready for its disruptive tendencies.”, said ASHON’s Chairman, Chief Onyenwechukwu Ezeagu
Responding, the NASD’s Managing Director and Chief Executive, Mr Bola Ajomale explained that partnership between ASHON and NASD was long overdue. According to him, the equity market is threatened and constantly dwindling due to the fact that the world is changing . Ajomale noted that firms should be encouraged to come to the market.
“ Emphasis should be on growth in the business. The growth is in finding companies and bringing them to the market. There is a new portal being introduced which has the capacity to take care of this new line of thought and it is expected to come on stream soon. The Portal will be introduced formally to ASHON Members. It was advised that we should encourage the Members of ASHON to look at other markets like FMDQ since the wealth the traders we make will cascade to the NASD.
“ In recognition of the large size of fixed income market and its importance, the NASD is set to introduce a new commercial paper trading initiative which is currently going through the Securities and Exchange Commission (SEC) for approval. ASHON’s support is essential to its success in the market.
“On the Pension Industry, NASD has started engaging participants and it is expected that Pension Fund Administrators will start trading in the NASD platform by the year 2020. We are working on creating an index in conjunction with S&P on five (5) top players in the market and on this index a fund can be created. NASD usually holds analysts calls where companies come to explain their figures and performance. We stockbrokers to always attend.”, Ajomale said.