The trading patterns of securities on the floor of the Nigerian Exchange (NGX) Limited by investors are set to change in the coming months.
This was revealed during the Business morning show on ChannelsTV, by NGX Chief Executive Officer, Temi Popoola, who said the exchange will implement these changes through technology.
According to him, the main goal of this is to digitize securities investing and other market-related transactions to attract more investors, especially Generation Z, known as zoomers, the demographic cohort that succeeds millennials and predates Generation Alpha.
“The exchange, for its part, does its part to coordinate the activities of players across the investment value chain to create an experience where a transaction can be initiated and completed within minutes.
Speaking about The Exchange’s 60-year journey, Popoola said NGX has experienced tremendous growth, both in terms of the number of securities now listed and the categories of listed securities and commercial activity.
He explained that the growth in NGX’s domestic participation in the coming months was a testament to the financial capacity of Nigeria as a whole and said The Exchange is designed to create greater local participation and attract investment through the macroeconomic environment as local participation increases.
According to Popoola, The Exchange has been synchronized with the SEC to digitize the market and ensure investors can buy and sell stocks quickly.
He said: “First of all I would say that the apex regulator, SEC, is taking the lead in addressing this and NGX supports this initiative. It will take some time for the capital market to reach this stage, but this is a lot of work and of course one has to understand that the structure of our market is involved in that process from start to finish. Over the coming months, we will likely see a structure that will move us in a positive direction to address this.”
Popoola revealed that efforts are underway to raise more foreign capital, noting that, “While attracting foreign capital is largely based on the nation’s macroeconomic environment, NGX continues to address factors that are within its direct control.” to provide a favorable environment for these investments.
“We recognize that investors look at the quality of available companies and asset classes before making investment decisions.
“As such, we place a lot of emphasis on governance, as well as the rules that guide the behavior of issuers in our market.
“On the trading side, we also consider factors around ease of settling trades, resolving complaints, finding the right infrastructure, and engaging the right intermediaries.”