The initiative is a new asset class expected to provide local and foreign investors new opportunities to hedge against market risks in the country.
Speaking at the launch of the platform, Chief Executive Officer , NGX, Temi Popoola, said the derivatives risk would be managed by NG Clearing Limited, a premier Central Counterparty infrastructure capable of reducing systemic risk, alongside Access Bank and Zenith Bank as clearing members. “The derivatives market will complement existing asset classes, provide investors and other market players with necessary tools for tactical asset allocation, and improve risk and cost management for effective portfolio management. It will further enhance the participation of domestic and international investors in Nigeria’s financial markets, which will positively impact performance of the economy.
He said: “I want to commend the efforts of stakeholders who have successfully driven the completion of the Derivatives Market since 2014. I would like to specially acknowledge the work that was done under the previous management of the Exchange, led by Oscar N. Onyema, whose contributions have formed the foundation of our current gains and accomplishments made manifest through the launch of NGX ETDs market.