The Nation Newspaper

Tag: exchange

  • New Exchanges to begin operations in Q2

    Two new trading platforms for securities may start operations in the second quarter of the year. They will provide alternative platforms for investors to buy non-listed securities and for unquoted securities to stimulate access to capital.

    The Nation gathered that the National Association of Securities Dealers (NASD) and the Financial Market Dealers Association (FMDA) would launch their over-the-counter (OTC) trading platforms in the second quarter.

    Already, the Securities and Exchange Commission (SEC) has approved the NASD while FMDA has started initial operational arrangements after securing provisional approval from the SEC.

    Market sources said both NASD and FMDA have stepped up arrangements for their trading platforms in time for them to launch within the second quarter.

    Director-General, SEC, Ms Arunma Oteh, said the newly constituted board of SEC would sit on and consider granting final approval to the FMDA before the end of this month.

    She hinted that NASD could possibly launch its operations in May.

    According to her, the significance of the registration of the two OTC platforms for the capital market was to enhance transparency and liquidity in the trading activities of unlisted companies.

    “Hitherto, trading activities of unlisted companies were never captured, thus distorting the picture of the depth of the market. The listings will assist in capturing activities on the platforms and also prepare unlisted companies for listing on the exchange,” Oteh said.

    An investor and a major dealer on the NASD said the commencement of operations by the OTC platform would create significant momentum for the securities market.

    The source said NASD would strive to put in place resources and technologies that would enable it to compete effectively and enhance its integrity.

    On its modus operandi, NASD stated that it would seek to ease secondary market trading of all non-quoted securities in the West African region, thereby stimulating growth through more efficient capital raising processes.

    A public limited liability company, NASD brings together issuers, individual and institutional investors, accredited dealers, stockbrokers, banks, central clearing systems, private equity and venture capital firms and depositories with a view to increasing liquidity in the non-quoted segment of the long term funding market.

    There will be two points of entry to the NASD markets-leased trading platform and web-based bulletin board.

    The leased trading platform is the structured end of the market loaded onto tested trading platform. Deals in non-quoted large cap securities will be matched automatically in this market – under conditions similar to a formal stock exchange. Trades will essentially be bilateral.

    Access to trade on leased trading platform is restricted to accredited broker firms who are duly licensed by SEC. The Central Securities Clearing System will provide clearing services while settlement will be done through some select banks in West Africa.

    The web-based bulletin board is the less structured end of the market that will stimulate liquidity in less liquid assets and channel capital to the more efficient issuers. Investors can identify opportunities that are not covered in mainstream investor information coverage and see trend performance of fast rising or specific interest non-quoted companies. Also, issuers can increase shareholder liquidity, manage complex capital raising exercises, identify strategic coalitions and highlight previously understated great performance. Access to this segment of the market is granted through registration and accreditation.

  • Royal Exchange to hire 2,000 agents

    Royal Exchange to hire 2,000 agents

    Royal Exchange Insurance Group is set to boost its operations with the services of 2,000 agents to sell its various products.

    Its Group Executive Director, Market and Sale, Auwalu Muktari, who made this known at its Meet the chief executive officers’ forum in Lagos, said the agents would be deployed to the firm’s outlets across the nation, adding that the company has developed a robust Information and Technology platform to support the agents.

    The firm’s Managing Director, Olutayo Borokini, said most of the products to be sold by the agents have been developed into scratch cards, adding that the firm hopes to sell all its products through scratch cards in small values which would be tailored towards specific needs.

    He said: “Those at the grassroots cannot be reached through the conventional brokers system. They are reached through agency networks which we are developing in- house. Also, we are deploying the use of information technology to achieve this.

    “We are putting some of these products on our website and sell them through the use of scratch cards through agents. The intension is that all our products will be sold through scratch cards in small values which would be tailored towards their specific needs.

    “The way the scratch card works is that if a young man has just bought a car, and wants to insure it, he would be approached by an agent who would educate him on the need for insurance. If the car owner agrees to insure the car, he would be given a scratch card. With the card, once he pays a certain amount of money, he would be able to access our web site, fill the proposal form on-line, and he would then get a cover automatically. The process can be done with all smart phones and gadgets. “

    He explained that an individual can still insure the content of his/her house through the cards, adding that certain products have been classified for certain prices. He said an individual can get a householder policy for one million value.

    “At the rate of one per cent, which would cost N10,000, an individual can get a cover which can be done through the scratch card by just buying a card for N10,000, key the pin on it on our customised website, and fill the proposal form and get the cover automatically, after due confirmation. The process assists the insured in the claims collection and ensures that delays are eliminated,” Borokini said.

     

     

     

  • Royal Exchange appoints three senior managers

    Royal Exchange Plc has appointed three management staff.

    According to the Corporate Communication Department of Royal Exchange, they are Mr Donald Nosiri, Group Head, Human Resources; Abiola Sanni, Group Head, Asset Management and Mrs. Temitope Ige-Isang, Group Head, Retail Business.

    The Group Managing Director, Mr Chike Mokwunye, said: “These new appointments are in line with our vision to once again be one of the dominant players in the insurance industry in the coming years.”

    Mr Sanni, a certified public accountant, has experience in corporate finance and investment management. Mr Nosiri is an experienced human resources practitioner with over 21 years experience in the banking sector and also in human resources consultancy.

    Mrs Ige-Isang has over 22 years experience in sales spanning several industries.

  • Royal Exchange pays N1.58b claims

    Royal Exchange General Insurance Company (REGIC) has paid about N1.58billion as claims as at the end of the third quarter of last year.

    The figure represents 54.75 per cent increase over the amount paid in the corresponding period in 2011, which stood at N1.02billion.

    In a statement, the Managing Director, Olutayo R. Borokini, said the company’s focus is the settlement of genuine claims, adding that this would continue to be the philosophy of the company in future.

    He said customer satisfaction is the fulcrum of insurance and this, inevitably, builds customer loyalty.

    “Once Royal Exchange is able to pay claims as they arise, the genreal public will have faith to take out insurance policies on their lives and properties because they are convinced that should a claim/loss arise, the company will be able to meet its financial obligations to its clients.”

    Giving the breakdown, he said N631 million was paid on Fire insurance policies, accounting for 39.9 per cent of the N1.58billion paid out as claims, while N398.7million was paid out on motor insurance policies, representing 25.2 percent of total claims paid, and Industrial All Risks insurance policies accounted for 11 per cent, amounting to N174.6million as claims.

    Other classes of insurance on which claims were paid, include non-motor insurance policies N164million, representing 10.3 per cent; marine insurance N131.3million, 8.3 per cent; while N68.1 million was paid on oil and gas insurnace policies during the period.

    A total of N12 million was paid on engineering insurance policies, he added.

    “These payments have shown that Royal Exchange General Insurance is more than capable of meeting its various claims demands.

    “The company paid close to N4billion to the Nigerian Bottling Company for the fire in its Benin plant in 2010 and was the lead insurer in a consortium that paid out over over N3.63billion to Friesland Foods West African Milk Company (WAMCO) over the major flood disaster that occured in its lagos factory, in 2011,” he stated.

  • Exchange rate stable in 2012

    The exchange rate was relatively stable last year, with the naira maintaining moderate appreciation and depreciation at intervals.

    The naira-dollar rates stability was because of increased supply of foreign exchange through autonomous sources to the interbank segment.

    Also, the Central Bank of Nigeria (CBN) intervened in the market to reduce demand pressure and raise the net open position of commercial banks in part to curtail speculative foreign exchange demand.

    It adjusted the mid-point exchange rate band from N150 plus or minus three per cent to N155 plus or minus three per cent within the year.

    Managing Director, Blue Wall Bureau De Change (BDC) Lucky Aiyedatiwa said despite occasional upsurges in foreign exchange demand due to interventions by the CBN and the increased supplies from autonomous sources, the exchange rate never exceeded a two per cent appreciation or depreciation margin.

    He said 2012 had seen some of the CBN policies on forex reflect on the dollar-naira parity at both the local and international market.

    Analysts at the FBN Capital predict that the exchange rate for the naira will be strengthened by the approved oil benchmark. The investment and research firm explained in a report that if the oil price remains stable, which is expected, a lower budget threshold would strengthen the defences and underpin the naira exchange rate. The naira has gained 3.1 per cent this year, the second best performance of African currencies tracked by Bloomberg News.

    On the budget, President Goodluck Jonathan had sent a N4.92 trillion Appropriation Bill to the lawmakers. “The House of Representatives had previously argued for $80 per barrel and the Senate for $78 per barrel. The FGN had assumed a threshold of $75 per barrel in its proposals for 2013. This was an increase from the level of $72 per barrel in the 2012 budget, an unusual step by the executive, which we attributed at the time to its determination to secure a relatively swift passage into law of the finance bill,” FBN Capital said.

    Fixed Income & Currency Analyst, Ecobank Nigeria,Ezun Olukunle, said the inter-bank rate fell 20 basis points to 10.5 per cent on December 19, despite provisions made for Central Bank of Nigeria (CBN) Wholesale Dutch Auction System (WDAS), treasury bills and the monthly government bonds auction.

    According to him, recent rise in interbank rate was to due ongoing CBN’s liquidity management adding that Open Market Operations (OMO) bills of N273.1 billion were sold between December 10 and 13.

    Data from the CBN showed that the average spot rate of Wholesale Dutch Auction System, Bureau De Change (BDC) and inter-bank were N157.65, N164 and N162.85 to a dollar, especially in the first half of the year.

    Besides, forex inflows into the economy increased substantially, reflecting rise in crude oil receipts and autonomous inflows. However, foreign exchange outflow dropped relative to the level in the corresponding period of 2011.

    In the second quarter alone, there was a net inflow of $35.44 billion into the economy, compared with $28.85 billion last year.

     

  • Company launches private health insurance exchange

     Flexible Benefit Service Corporation (Flex) has launched its ‘Insure XSolutions’ private health insurance exchange. The private exchange promotes a defined contribution funding model that gives uninsured employers a way to set their own budget and assist employees with health care expenses.The Insure XSolutions web platform provides an online insurance marketplace where employees can shop, compare and apply for insurance plans that fit their personal needs.

    Available in select markets, InsureXSolutions is an ideal solution for employers currently not offering employee benefits. Employers simply allocate a fixed amount of funds for each employee.

    Employees can then login to the InsureXSolutions web portal for access to online quoting and comparison resources for individual and family insurance plans from various national and regional insurance companies. Once employees find the right plan, they use the InsureXSolutions online marketplace to directly apply for health insurance, Medicare, short-term insurance and/or vi
    sion insurance.