The Nation Newspaper

Tag: Trading

  • Dealers halt trading as naira value falls

    Dealers halt trading as naira value falls

    Dealers yesterday pulled the plug on electronic trading in the naira after it slid past the key level of 200 to the dollar on fears the postponement of this week’s election could trigger a constitutional crisis.

    Deploying for the first time a ‘circuit-breaker’ agreed among themselves last month, leading banks in Lagos halted trade after the naira dropped more than two per cent. At its weakest, it was quoted at a record low of 204.25 to the dollar, a decline of 20 per cent since the start of November.

    The rout has been driven by the combination of a tumbling oil price and a rise in political risk, highlighted by last Saturday when authorities pushed back the February 14 presidential election by six weeks, blaming it on insurgency accentuated by Boko Haram militants.

    It was not clear when normal naira trading in might resume. Although the halt is meant to calm nerves, it undermines Nigeria’s credibility as a smoothly operating capital market and could trigger its ejection from a key JP Morgan emerging market bond index.

    In the year after Nigeria joined the index in October 2012, foreign bond-holdings jumped from $1.2 billion to $5.4 billion, but JP Morgan said last month Nigeria’s inclusion was under review because of a lack of market liquidity.

    Ejection from the index would trigger major capital outflows because investors who track it would have to sell Nigerian bonds. That would exacerbate a budget crunch in Abuja by removing an important source of funding and further hammer the currency.

    In another sign of strain on the financial system, the rate banks charge each other for overnight lending spiked to 100 percent this week as the central bank sucked up naira to support the currency rather than continuing to leak foreign reserves.

  • Afrinvest introduces online trading solution

    Afrinvest introduces online trading solution

    Afrinvest Securities Limited, has announced the launch of Afrinvestor.com, a portal that enables individual investors and institutional clients to trade Nigerian stocks and other investment products online, using their personal computers and other smart devices.

    Managing Director, Afrinvest Securities Limited, Charles Egbunonwo, said the firm has always placed a premium on the use of technology as a business enabler, adding that the product would empower clients to take more control of their investments, supported by sound investment advice and professional guidance.

    “With Afrinvestor.com, our clients and investors will not only be able to initiate and execute trade online, they can also view their account information and portfolio performance, access a wealth of in-depth equity research as well as market data and intelligence on companies, key sectors and the broader Nigerian economy, all from the comfort of their homes or offices,” he said.

    He said the move to electronic trading compared to floor trading continues to increase with many of the major exchanges the world over now doing all their business online. Benefits to investors include reduced cost of transactions, greater liquidity, greater competition, increased transparency and tighter spreads, especially for commoditised, exchange-traded instruments.

  • UBA Capital inaugurates trading portal

    UBA Capital inaugurates trading portal

    UBA Capital at the weekend , launched an online trading platform with real time investment account funding role.

    The platform, investnow.ng,  allows investors to fund their investment accounts directly and instantly, without going through an account officer in the option of a client-company funds lodgment.

    It also provides a live price feed (intra-day) for listed stocks, enabling investors to make informed decisions based on the latest data.

    Speaking at the Nigerian Stock Exchange (NSE), UBA Capital Group Chief Executive Officer (CEO) Oluwatoyin Sanni praised the milestone, saying “since UBA Capital was founded our mission has been to develop the capital markets in Nigeria in order to give the investing public the confidence to invest actively. The  platform combines world class technology with a robust client data protection and security framework in order to give our clients a seamless experience when processing transactions. Our clients will have access to research materials to make informed investment decisions.”

    He said UBA Capital’s clients will be able to manage their portfolios online on mobile devices, tablets, laptops and desktop computers.

    By making investing in Nigeria quicker and simpler, Sanni said, the platform will unite it with its customers.

    Managing Directors such as Wale Shonibare (UBA Capital Investment Banking); Tokunbo Ajayi (UBA Capital Trustees); Modupe Mujota (UBA Capital Asset Management) and Jude Chiemeka (UBA Capital Securities Trading) also supported the platform.

    They said innovation remains a key driver for all the businesses within the group to continue to provide outstanding quality of service and value to customers.

  • Capital market regulators issue guidelines on online trading

    Capital market regulators issue guidelines on online trading

    Securities regulators have designed guidelines for the growing number of retail online stockbroking portals that allow investors to execute their own orders on the Nigerian Stock Exchange (NSE).

    A reliable source said the regulators have raised a team to review the retail online stockbroking portals and develop a robust regulatory framework that could aid the growth of the segment and protect the investors and the market from abuses.

    The regulatory framework is expected to provide clear rules and guidelines for stockbroking firms and users of the online trading portals.

    There are no specific rules and guidelines for the online trading portals, which have emerged with the launching of the NSE’s new multi-faceted trading engine in 2013.

    At least four stockbroking firms have launched online retail stockbroking portals. These included Meristem Securities Limited, Lead Capital Plc, Morgan Capital Group and Capital Bancorp Plc.

    The regulatory framework, according to sources, would seek to protect the market and investors from the main risk of identity theft while allowing enough flexibility that could stimulate the growth of the online trading.

    NSE’s new trading engine, X-GEN, became fully operational in 2013. A dynamic platform that has numerous opportunities and capabilities, it is able to process some 100 million orders per day with 5,000 trades per second. It has a highly flexible and configurable market structure that can be enhanced to support the auctioning process and trading of several asset classes including Treasury Bills, a wide range of Fixed Income securities (including FGN Bonds), Equities, Exchange Traded Funds, Commodities and Derivatives.

    Based on NASDAQ OMX’s proven X-Stream technology, the X-Gen allows investors, through their stockbrokers, to have real-time access to market prices and their portfolios and provide them with ability to execute market orders in near real-time on a wide range of devices including smart phones and laptops from any location.

    Capital Bancorp is billed to formally launch its online stockbroking portal, Bancorp e-Trade, tomorrow. Bancorp e-Trade enables retail investors with as low as N1,000 to open stockbroking accounts and trade on these accounts.

    Managing Director, Capital Bancorp Plc, Mr. Higo Aigboje, said the portal will provide investors with round-the-clock access to their portfolio and cash statements while investors can also place their orders within and outside the trading hours of the NSE.

    According to him, Bancorp e-Trade is designed as a convenient and transparent means to ensure investors are in control of their investments at any time.

    To be eligible to trade on the portal, one needs only access to internet, a functioning e-mail address, any active bank account, a fair understanding of the workings of the stock market and a stockbroking account with Capital Bancorp.

    He outlined that his firm has simplified the account opening process for new investors as they only need to fill account opening form and upload scanned passport photo, scanned utility bill that is not later than three months, scanned specimen signature, scanned mode of identification and their bank details.

    The features of Bancorp e-Trade, which sits on the infoware e-business suite platform, included display of balance in any currency of choice, online mandate, ability to specify expiry dates on orders, display of portfolio balance and portfolio analysis, statement of account, ability to view and download contract note in different formats, ability to view certificates and verification status, live streaming of stock market prices, live portfolio valuation, amendments or cancellation to undone transactions, graphs and charts and online real-time client information.

  • FMDQ, Bloomberg launch trading platform for bonds

    Bloomberg and FMDQ OTC Plc have announced the launch of the Bloomberg E-Bond trading and market surveillance system, a new electronic trading system for Nigerian government bonds. It has commenced operation under FMDQ’s over-the-counter (OTC) market securities exchange.

    Jointly developed by Bloomberg, FMDQ and the local market-maker community, the product provides electronic trading and market surveillance tools for participants in Nigeria’s N12 trillion fixed income market.

    “As a newly established OTC market securities exchange, our goal is to empower the Nigerian OTC financial markets to be efficient, credible and globally competitive. With its potential to drive transparency and liquidity, we believe the introduction of the Bloomberg E-Bond system will help us to achieve those aims and we are pleased to work with Bloomberg to bring it to the Nigerian fixed income market,” says Dipo Odeyemi, Divisional Head, Operations and Technology, FMDQ OTC.

    The Bloomberg E-Bond system provides a complete, consolidated marketplace for Nigerian government bonds, offering market participants a robust and flexible set of tools supporting the full trade workflow. This includes pre-trade price discovery and analytical tools, the ability to handle both multi-dealer request-for-quote (RFQ) and order trading, straight-through processing (STP) functionality and integrated trade capture and reporting tools.

  • Trading on the bridge

    Almost all the pedestrian bridges in the Federal Capital Territory (FCT) have been taken over by traders. GBENGA OMOKHUNU reports

    BEFORE the Minister of Federal Capital Territory (FCT), Senator Bala Mohammed started building six pedestrian bridges in the metropolis, pedestrians were knocked down by speeding cars everyday.

    This ugly incident lingered for many years before Mohammed in 2012 listened to the outcry for pedestrian bridges.

    The Minister remarked at a public function that the development was a great concern to his administration. He then identified six critical locations where the pedestrian bridges should be constructed which included: Nnamdi Azikwe Expressway by Tafawa Balewa (Old Secretariat); Nnamdi Azikwe Expressway by Olusegun Obasanjo (Wuye Junction); Shehu Yar’Adua Way by Okonja Iweala Way (V.I.O Mabushi); Shehu Yar’Adua Way by Ladi Kwali Street (Sheraton Junction); Nnamdi Azikwe Expressway by Ahmadu Bello Way (Banex Junction) and Nnamdi Azikwe Expressway by Shehu Shagari Way (Nicon Junction).

    The bridges which were supposed to be completed six months from the date of the contract. Some of them remain unfinished.

    Abuja Review investigations revealed that the completed ones are sometimes hardly used by pedestrians. Why? Petty traders have since converted the bridges to veritable business posts. At night, the bridges come alive offering a variety of articles.

    When Abuja Review visited one of the bridges at Nnamdi Azikwe Expressway by Shehu Shagari Way, at the popular Nicon Junction bus stop, traders were seen enjoying their trading with their customers without fear of been arrested. Products displayed at the bridge included Shoes, under wears, fairly used cloths, Belts, fruits, groundnuts and so on.

  • Trading on the bridge

    Trading on the bridge

    Almost all the pedestrian bridges in the Federal Capital Territory (FCT) have been taken over by traders. GBENGA OMOKHUNU reports

    BEFORE the Minister of Federal Capital Territory (FCT), Senator Bala Mohammed started building six pedestrian bridges in the metropolis, pedestrians were knocked down by speeding cars everyday.

    This ugly incident lingered for many years before Mohammed in 2012 listened to the outcry for pedestrian bridges.

    The Minister remarked at a public function that the development was a great concern to his administration. He then identified six critical locations where the pedestrian bridges should be constructed which included: Nnamdi Azikwe Expressway by Tafawa Balewa (Old Secretariat); Nnamdi Azikwe Expressway by Olusegun Obasanjo (Wuye Junction); Shehu Yar’Adua Way by Okonja Iweala Way (V.I.O Mabushi); Shehu Yar’Adua Way by Ladi Kwali Street (Sheraton Junction); Nnamdi Azikwe Expressway by Ahmadu Bello Way (Banex Junction) and Nnamdi Azikwe Expressway by Shehu Shagari Way (Nicon Junction).

    The bridges which were supposed to be completed six months from the date of the contract. Some of them remain unfinished.

    Abuja Review investigations revealed that the completed ones are sometimes hardly used by pedestrians. Why? Petty traders have since converted the bridges to veritable business posts. At night, the bridges come alive offering a variety of articles.

    When Abuja Review visited one of the bridges at Nnamdi Azikwe Expressway by Shehu Shagari Way, at the popular Nicon Junction bus stop, traders were seen enjoying their trading with their customers without fear of been arrested. Products displayed at the bridge included Shoes, under wears, fairly used cloths, Belts, fruits, groundnuts and so on.

     

  • Stockbrokers to pay for trading errors

    No stockbroker shall be allowed to trade on the Nigerian Stock Exchange (NSE) unless it maintains an account through which its trading errors will be cleared and settled, under a new rule being proposed by the NSE.

    A draft of the new rule titled: “Error Accounts” obtained by The Nation provides that no dealing member will be permitted to carry out any transactions using the facilities of the Exchange unless it maintains an error account in its name or it participates in an error account established for a group of dealing members.

    The draft of the new rule is undergoing preview by stakeholders and it is expected to be rounded off by the end of this month.

    According to the new rule, any transaction effected using the Exchange’s trading facilities, which results in a dealing member assuming or acquiring a position in a security as a result of an error and any transaction initiated on the trading floor by a dealing member to offset a transaction made in error shall be cleared in the dealing member’s error account or group error account unless the customer accepts the error transaction.

    The new rule stipulates that any transaction initiated on the Exchange’s trading facilities by a stockbroker to offset a transaction made in error shall be evidenced by a time stamped order ticket indicating that the transaction is to cover an error.

    The new rule requires stockbrokers to keep all records of errors with the audit trail data elements to include name or identifying symbol of the security, as may be required by the clearing agency; number of shares or quantity of security; transaction price; time the trade was executed; executing broker’s badge number, or alpha symbol as may be used from time to time in regard to its side of the contract; executing broker’s badge number or alpha symbol as may be used from time to time of the contra side of the contract; clearing firm’s number, or alpha symbol as may be used from time to time, in regard to its side of the contract; clearing firm’s number, or alpha symbol as may be used from time to time, in regard to the contra side of the contract; whether the account for which the order was executed was that of a dealing member and, if so, the identity of such dealing member and any other information as the Exchange may from time to time require.

    Besides, the brokers are expected to provide the nature and amount of the error; the means by which the dealing member resolved the error with the member that cleared the error trade on the dealing member’s behalf and the aggregate amount of liability that the stockbroker has incurred and has outstanding, as of the time each such error trade entry was recorded.

    According to the rule, an error may be resolved by the customer accepting the error transaction as executed and the broker paying the customer to settle the amount of the error. However, if the customer does not accept the erroneous transaction and the order cannot be executed on its original terms or better in the then current market, the stockbroker must issue a report from its error account; and such report may be confirmed to the customer as an Exchange transaction provided there is a transaction on the Exchange in the error account that reverses the erroneous trade.

    “A dealing member shall report to the Exchange all error transactions in such dealing member’s account which result in a profit of more than N50,000, for any single transaction, or an aggregate profit of more than N500,000 in any calendar week. Such reports shall contain a detailed record of the errors and liquidating transaction,” the new rule stated.

    Any stockbroker that contravenes the ‘error rule’ will be liable to a fine of N5,000 payable for everyday during which it remains in default in addition to any other sanctions that the Exchange may impose.

     

  • Free trading confab

    Free trading confab

    ForexTime Ltd has held a free money trading conference entitled: New paradigm in online trading in Akure, Ondo State. It focused on trading and opportunities in the forex industry.

    The firm, in a statement, said issues, such as online marketing, proper perspectives to forex marketing, effective trading, and tools on how to maximise trading opportunities were discussed. Others include training and forex trading networking.

    Speaking at the event, the Chief Executive Officer, Fore  ForexTime, Mr Olga Rybalkina, said: “This conference provided a valuable opportunity for investors, high net worth individuals, agents, investment managers, commodity traders, entrepreneurs, brokers, portfolio managers and venture capitalists to exploit and advance their knowledge of the market.”

    He said the market is dynamic, adding that the programe was organised to enable traders among other stakeholders broaden their horizons.

     

  • Trading for survival

    GOTODOK LENGSHAK (400-Level Television Journalism) writes on the growing trend of students doing various businesses at the Nigerian Television Authority (NTA) Television College (TV COLLEGE), Rayfield, Jos.

    A first time visitor to the Nigerian Television Authority (NTA) Television College (TV College), Jos Plateau State, is welcomed by an array of trading posts. Most of the bussinesses are not owned by members of the college’s host community, but by students.

    For some reasons, the students have been engaging in one business or the other. This, perhaps, is making journalism, for which the school was established, to compete with entrepreneurial skills of the students.

    There are students who went into businesses to meet their personal and academic needs. Others did because they have a flair for it.

    Florence Olukoju, 300-Level Production, who sells snacks and a locally-made drink popularly called Zobo, is one of such students. In a chat with CAMPUSLIFE, she said she was prompted by the need to be self-reliant and to meet other’s needs.

    She said: “I like business generally, and since my sojourn outside my parents’ home, I have learnt to be an independent person. This encouraged me to set up a business venture that will make me realise my goals as an entrepreneur.”

    This view was shared by the other small-scale business owners in the college.

    However, combining academic work with business is by no means an easy task. To be successful on both fronts seems to be an uncommon feat because one must invest adequate time to meet up academically and to also keep the business afloat.

    Damion Babang, also in 300-Level Production and co-owner of a popular cyber café in the college, Network Bridge Communication, attested to this notion. He said despite the tight conditions, coping under pressure is what many students do.

    “Achieving academic success and sustaining my business made me to sacrifice my nights and work almost all the time to cover up academically. I will leave anything I am doing in my office to write my assignments, do my productions and study as well. When there is a lecture, I leave every job I am doing to attend the lecture because this is the reason I am in school,” Damion said.

    According to him, entrepreneurial students in the college, apart from fending for themselves, have turned out to be employers of labour.

    “Business on campus has helped me in solving my financial problems. Instead of going to uncles and aunties to seek for financial assistance, I cater for my needs and also help my other colleagues. This four years business has turned out to be an employment firm for others. Right now, we have an assistant who manages the café when we are not there or on days when we have much work to do,” Damion added.

    In her opinion, Florence believed the only way out of poverty was to embrace small scale business, through which she pay her school fees.

    Considering the high rate of unemployment in the country, students who engage in business said they did not have the plan to quit their businesses even after school. Some of them who spoke to CAMPUSLIFE said they enjoyed doing what they were doing. “I’ll still maintain my business even after school. Nigeria is very unpredictable. I will only engage in other ventures when I think I don’t derive satisfaction in the business any longer,” said a student, who operates a computer center in the college.