The Nigerian Stock Exchange (NSE) has announced the appointment of CDHS as one of its Primary Market Makers. The appointment follows the resignation of WSTC Financial Services Limited, one of the ten Primary Market Makers appointed in September 2012.
The Executive Director, Business Development, NSE, Mr. Haruna Jalo-Waziri, described the appointment as a positive step towards the improvement of market liquidity and depth.
He added that CDHS went through a rigorous selection process and met the minimum net capital requirement, standard, as set by the Exchange.
According to the Exchange, the Market Makers scheme is an initiative aimed at providing liquidity through the establishment of best prices and narrowing of spreads. There is one PMM and two supplemental Market Makers assigned to every listed equity. Market Makers provide liquidity for their assigned stocks by quoting at and improving upon the national best bid and offer. The Securities and Exchange Commission [SEC] has advised the board of governors of the Performance, Earnings and Returns Leadership [Pearl] awards Nigeria to include Good Corporate Governance in its criteria to reward quoted companies in Nigeria. The Commission also assured of its readiness to collaborate with the Pearl awards in encouraging companies for high performance.
The Ag. director General of SEC, Mounir Gwarzo made this known when the Board of Governors of Pearl Awards paid him a courtesy call in his office last week.
He said it was in a bid to ensure that companies operating in Nigeria’s capital market do well, that SEC is set to launch its corporate governance score card.
Gwarzo explained that the score card will ensure compliance of these companies with the tenets of corporate governance which will in turn translate into better services delivery among others.
He said, ‘One issue that is very critical in this market is the issue of Corporate Governance. I appeal that in your selection process, emphasis be given to companies that are complying . SEC is the only regulator that has developed its corporate governance score card which has been approved by the board and will lunch it very soon.
The Ag. DG also enjoined the Pearl awards team to look at issues of Corporate Social responsibility [CSR] by quoted companies which he said is very important so that communities will see companies giving back to them.
The President of Pearl award, Tayo Orekoya commended the management of the SEC on its efforts to return the market to the path of sustainable growth and development adding that the giant strides and remarkable achievements of the new management within the short period of time cannot be over emphasized.
He said that there is no doubt that expectations are high, with investors earnestly looking forward to continuous pragmatic positive changes in the stock market under your able leadership. We are convinced that with your experience and exposure both as operator and regulator,the Nigerian Capital Market would be steadily stabilized and witnessed remarkable growth.
He further explained that Pearl Awards basically identifies and rewards actual performance of companies quoted on the stock exchange saying that the awards process was based on verifiable facts and figures assessed utilizing credible and globally acceptable parameters for data evaluation.