New Telegraph

ASHON urges stock brokers to embrace demutualised exchange

The Chairman, Association of Securities Dealing Houses of Nigeria (ASHON), Chief Onyenwechukwu Ezeagu, has urged stock broking companies in Nigeria to align their business models with the newly demutualised Nigerian Stock Exchange to maximise anticipated opportunities and risks.

 

Following its approval to convert into public company by the Securities and Exchange Commission (SEC) and Corporate Affairs Commission (CAC) at the weekend, the Exchange will, henceforth, operate as a profit making organisation under the Nigerian Exchange Group Plc (NGX Group ) with three subsidiaries:

 

The Nigerian Exchange Limited (NGX Limited) NGX Regulation Limited ( NGX REGCO) and NGX Real Estate Limited (NGX RELCO). Market analysts believe that 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 stock broking firms while some may opt out of the business for a new venture to remain afloat.

 

Addressing securities dealers at a webinar themed “The Future of Securities Dealing Business in Nigeria Post Demutualisation of NSE,” Ezeagu urged ASHON members to align their business models with the new market structure.

 

“The changes that this new orientation will bring in the business model of the exchange may impact our own operating models as securities dealers.

 

“However, we anticipate that there must be responsibilities and risks attached to every relationship; some of these risks may crystalise, some are not within our radar, we know that researchers usually expect some serendipity results and make provisions for it just like we try to do in this matter.

 

“The Governing Council of ASHON has been deliberating on proactive measures to take in order to realign our business model and ensure the sustainability of members’ businesses in the changes that may follow the demutualisation.

 

“In this wise, the council resolved to engage with other exchanges (platforms) with a view to creating avenues for our members to diversify and sustain their businesses and enhance their earnings base

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