NG Clearing limited, the first Central Counterparty in West Africa, has formally launched her operations.
The launch of NG Clearing as a CCP means that exchange-traded derivatives are now a possibility in the Nigerian Capital market. As a Financial Market Infrastructure (FMI), NG Clearing facilitates the clearing and settlement of exchange-traded derivatives, management of counterparty risk, reduction of systemic risk, and promotion of the safety and integrity of Nigeria’s capital market.
This opens new and clear opportunities for investors, stakeholders, and other players in Nigeria’s capital market.
In his opening speech, the Managing Director and Chief Executive Officer of NG Clearing Limited, Mr. Tapas Das, expressed delight as he stressed the monumental significance of NG Clearing’s launch for the Nigerian Capital Market. He linked the emergence of NG Clearing to the maturity of the Nigerian financial ecosystem, stating that “With Nigeria’s capital market maturing into offering advanced capital market products such as futures derivatives, it is only ideal to establish a CCP, in line with global best practices. The emergence of NG Clearing is not only an indication of our collective growth as a market but also a marker of the forward-looking intent of the Nigerian capital market”.
The chairman of NG Clearing, Mr. Oscar N Onyema, chronicled the origin of the NG Clearing dream in his address.
He stated that “The NG Clearing dream was borne out of a firm commitment to position the Nigerian capital market as a stable and resilient market that offers local and foreign investors sound opportunities without compromising global standards. On this premise, we took steps to identify the gaps that inhibit our market from attaining this positioning. One of the gaps we identified was the absence of the financial market infrastructure known as a CCP.”
He also noted that having a CCP is key to the realization of the Nigerian Capital Market master plan.
The Minister of Finance, Dr. (Mrs.) Zainab Shamsuna Ahmed noted that NG Clearing’s emergence will contribute to the post-covid-19 recovery of the Nigerian Economy. She also mentioned that “a door of new possibilities has been opened for growth and development of the Nigerian economy”.
The Director-General of the Securities and Exchange Commission, Dr. Lamido Yuguda asserted that the launch of NG Clearing as a CCP is historic for the Nigerian Capital Market. In his words, “the services of NG Clearing will help in deepening the market while placing it on the right path to achieving the required sophistication, depth, and breadth in terms of products and service offerings.” He went on to note that the SEC will continue to deliver on its mandate of ensuring the Nigerian capital market is safe, orderly, and built on integrity.
The CBN Deputy Governor, Financial Systems Stability (FSS), Mrs. Aisha Ahmad, whileShe detailing the important roles of NG Clearing in driving stability in the ecosystem, She stressed the need to adopt sustainable approaches that contribute to the combating of climate change.