Nigerian Stock Exchange on the cusp of short selling
19 April 2012 Lagos
Image: Shutterstock
In just three weeks, Nigeria's Stock Exchange will finish its alterations to relax restrictions on price swings, adopt the Nasdaq platform, open into US trading hours and allow short selling.
The bourse will now allow stock prices to move by up to 10 per cent a day, from its current five per cent, and introduce market makers who can borrow stocks for shorting, said Ade Bajomo, executive director of market operations and technology.
"What would we like to be when we grow up? I think Singapore," he said at the Reuters Africa Investment Summit in Lagos. "A market that rises up from almost zero, a market run in an efficient manner ... a financial hub."
"One of the key initiatives is market-making, securities lending and short selling," he added. "We want to build a hybrid market, with market-makers to create liquidity."
Futures and other derivatives could start trading from 2014.
The bourse will now allow stock prices to move by up to 10 per cent a day, from its current five per cent, and introduce market makers who can borrow stocks for shorting, said Ade Bajomo, executive director of market operations and technology.
"What would we like to be when we grow up? I think Singapore," he said at the Reuters Africa Investment Summit in Lagos. "A market that rises up from almost zero, a market run in an efficient manner ... a financial hub."
"One of the key initiatives is market-making, securities lending and short selling," he added. "We want to build a hybrid market, with market-makers to create liquidity."
Futures and other derivatives could start trading from 2014.
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