Stockbroking companies in Nigeria have been urged to align their business models with the newly demutualised Nigerian Stock Exchange (NSE) to ensure more opportunities and minimise risks.
Chairman, Association of Securities Dealing Houses of Nigeria (ASHON), Chief Onyenwechukwu Ezeagu, made this call at a Webinar themed “The future of Securities Dealing Business in Nigeria Post Demutualisation of the NSE”.
Following its approval to convert into public company by the Securities and Exchange Commission (SEC) and Corporate Affairs Commission (CAC) recently, The NSE will henceforth operate as a profit making organisation under the Nigerian Exchange Group Plc (NGXGroup ) with three subsidiaries: The Nigerian Exchange Limited (NGX Limited) NGX Regulation Limited ( NGX REGCO) and NGX Real Estate Limited (NGX RELCO).
Reacting to the development, market watchers had explained that the demutualisation of the exchange would lead to an increase in the minimum capital base for Dealing Member Firms and trigger a wave of mergers and acquisitions among stockbroking firms while some may opt out of the business for a new venture to remain afloat.
However, Chief Ezeagu revealed that the governing council of ASHON has been deliberating on proactive measures to take in order to realign its business model and ensure the sustainability of members’ businesses in the changes that may follow the demutualisation.
He added that the council has resolved to engage with other exchanges (platforms) with a view to creating avenues for its members to diversify and sustain their businesses and enhance their earnings’ base.
– The Sun