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SEC okays NASD rules for market makers

The NASD OTC Plc says the Securities and Exchange Commission has approved its rules rules for market makers in its over-the-counter market.

Market makers are also known as liquidity providers and they contribute towards better price discovery and a market reaching equilibrium, according to the company.

In a notice announcing the approval, NASD Plc said three of its participating institutions had indicated interest in registering as market makers on the NASD OTC market.

NASD Plc had in November last year said there were ongoing talks about the likely impact market makers would have on the over-the-counter market, expressing support for the talks.

“Currently discussions are growing in the OTC market on if market makers assist (or impede) in creating liquidity-transparently on the OTC market,” it had said.

“NASD endorses these healthy discussions and has indeed circulated a survey to all licenced brokers in the market.”

The NASD over-the-counter market was licensed by the Securities and Exchange Commission in December 2012 to provide a formal and transparent OTC trading platform for all public securities which are not listed on any other trading platform in Nigeria.

Meanwhile, the equities segment of the Nigerian Stock Exchange opened the week on a negative note as the NSE All-Share Index and the market capitalisation fell by 1.07 per cent to close at 28,532.81 basis points and N9.808tn, respectively. Both indicators had declined by 0.15 per cent on Friday.

Monday’s drop sees the NSE ASI’s year-to-date return slip to -17.67 per cent.

In all, 202.219 million shares worth N1.093bn were traded in 2,614 deals with 10 stocks appreciating in value and 25 others declining in value.

FBN Holdings Plc led the gainers, rising by 8.35 per cent or 42 kobo to close at N5.54 per share, while Stanbic IBTC Holdings Plc led the losers, falling by 4.98 per cent or N1.04 to close at N19.85 per share.

Source: Punchng