The Securities and Exchange Commission (SEC) has kicked off the implementation of margin guidelines for the Nigerian stock market, with a training programme.
The training- a three-day workshop, was part of its effort to build capacity of its staff to address issues relating to margin trading and finance, and develop an in-house application to generate the “margin list”.
The margin list contains meta-data derived securities that are eligible to be used to determine margin credit in a margin account. Rules 21/22 of the SEC/CBN issued guidelines give SEC the responsibility to generate this list on a monthly basis.
The course was organised and managed by Applied Logic Ltd (owned by Grand Towers PLC), a technology firm specialized in the use of computational finance techniques for capital markets.
Participation was quite strong with over 25 staff selected from various parts of the Commission participating on each day.
Former Nigeria Country Manager for the International Finance Corporation (IFC), Mr. Mohan Wikramanayake, led the team of facilitators to address key issues that relate to the implementation of the margin guidelines.
Workshop material covered the use of margin terminology, the interpretation and application of the margin rules, the use of technology in the management of margin accounts and the process by which the margin list is generated, using the in-house application developed for the SEC by Applied Logic.
Vice President, Zanibal Limited, Mr. Uche Igwebuike, made presentation on technology requirements for operators and regulators..
SEC’s Executive Commissioner, Operations, Ms Daisy Ekineh, said, “it is important for the Commission to understand the details of managing margin transactions as a first step towards ensuring that our oversight of the product is strong”.
She also indicated that once the Commission is comfortable with the process of implementation, the course would be made available to other market.