NSE Urges Firms To Register As Dealing Members To Trade Derivatives
The Nigeria Nigerian Stock Exchange has urged corporate entities who wish to participate in derivatives trading to register as dealing members.
The Head, Broker-Dealer Regulation, NSE, Olufemi Shobanjo said this at the ongoing Derivatives Workshop in Lagos.
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According to the NSE, to attain Exchange Traded Derivatives Market Member status, firms are required to satisfy a series of conditions.
Conditions For Registration As A Dealing Member
To be qualified as a member, the exchange also said the corporate entity must have in its firm a dedicated dealer, compliance officer, settlement officer, and risk officer/manager with the necessary certification and proven understanding of the rules guiding Derivatives Trading in Nigeria.
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Derivatives are essentially contracts that derive their value from an agreed-upon underlying asset, index or commodity. Common underlying instruments include bonds, commodities, currencies, interest rates, market indices and stocks.
