All over the world, stock exchanges (or financial market) provide the platform for stockbrokers and traders to meet and transact in financial securities. Such securities may include currencies, bonds, shares, and so on. The Nigerian Stock Exchange is the corporate entity established following the report of the committee set up by the government in 1959 to look into the management of financial securities in the country.
Nigerian Stock Exchange: Historical Development
The Nigerian Stock Exchange (NSE) was established in September 1960 and started her full operation in June, 1961. The exchange was founded as the Lagos Stock Exchange but later took a new nomenclature in 1977 to become the NSE. Even though it maintained her corporate Headquarters in Lagos, the NSE has spread her tentacles with branches located in several cities of the country including Abuja, Kano, Port Harcourt, Ibadan, Kaduna, Onitsha and Abeokuta.
Nigerian Stock Exchange: Size and Services
The Nigerian Stock Exchange is a platform that services the largest economy in Africa. It provides trading and listing services. It also provides licensing services, stock market information and data, as well as other supporting services in the financial market. As at the end June, 2016, according to Wikipedia, there are about 180 companies listed for trading and the market size stood at about 10.6 trillion Naira total market capitalisation. With this size, the NSE positions herself as the third largest capital market in Africa.
Nigerian Stock Exchange: Trading and Monitoring
During each of the weekdays, trading begins on the floor on the NSE by 11.00 a.m. and ends by 1.00pm. Unlike previous experiences, trading is now done using the Automated Trading Systems that provide a seamless approach to stock trading. An Official Daily report is issued by the NSE after the closing of trading for the day. The activities of the NSE are under the strict regulation of the Nigerian Securities and Exchange Commission, which works to prevent non-compliance with the rules of trading, detect and tackle unscrupulous trading practices.
Nigerian Stock Exchange: International Affiliation
Presently, the Nigerian Stock Exchange is a member of the African Stock Exchanges Association (ASEA) and the World Federation of Exchanges (FIBV). The NSE also serves as one of the observers at the International Organization of Securities Commissions (IOSCO)’s meetings.