NGX, others move to drive derivatives market

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The Nigerian Exchange Limited and other stakeholders in the stock market have expressed their commitment to boosting the Exchange-Traded Derivatives market.

“To promote clearing efficiency, stability and confidence, the NGX ETD market was launched in collaboration with the premier Central Counterparty in Nigeria, NG Clearing Limited, to provide the clearing infrastructure for NGX Derivatives Market and its clearing members,” it stated.

The webinar will focus on the intricacies of derivatives futures contracts, including how the contract is traded and settled on a day-to-day basis, the margining process, and risk management issues. According to the statement, participants at the webinar would learn of various applications of equity indices and single stock futures contracts, including trading and arbitrage applications, and a range of investment fund applications, outlining the motivations for such transactions, how they were executed, and the rewards and risks involved.

Speaking on the webinar event, the Divisional Head, Capital Market, NGX, Mr Jude Chiemeka, explained that the webinar would serve as a platform to further sensitise market participants on the Exchange’s effort and commitment to developing a thriving derivatives market in Nigeria.All rights reserved.

 

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