Nigeria: NSE Intensifies Efforts to Introduce Derivatives to Nigerian Capital Market

11 September 2020

As investors anticipate the launch of derivatives trading in the Nigerian capital market, the Nigerian Stock Exchange (NSE) is laying the ground work to build a standardized derivatives market.

Part of these efforts includes capacity building sessions, workshops and trainings.

On Tuesday such training was held which featured a special presentation from Charlie Rubin, Derivatives Consultant at C-Rubin Futures, and former Senior manager of the New York Stock Exchange, and New York Futures Exchange.

Speaking at a webinar, Chief Executive Officer, NSE, Mr. Oscar N. Onyema, said: "The global financial market has seen good growth and innovation over the past 20 years, and derivatives have contributed substantially to this impressive development. Today, the global derivatives market is the main pillar of the international financial system and the economy as a whole. The Exchange in its quest to be Africa's preferred Exchange hub, recognizes the importance of a well-developed derivatives market and has worked assiduously to build the regulatory and technology framework as well as the competence required to support the launch of a standardized Exchange Traded Derivatives (ETDs) market."

Derivatives Consultant, Charles Rubin, highlighted the unique benefits of derivatives trading. He noted: "Derivatives have been known to increase trading activity significantly across markets. For instance, the National Stock Exchange of India is witnessing trading activity 25 times more than pre-derivative levels in its 8th year since introducing derivatives. This accounts for four times more than its cash business."

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