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Nigeria: Ashon Advises Dealers On Survival Strategies After NSE’s Demutualisation

The Chairman, Association of Securities Dealing Houses of Nigeria (ASHON), Chief Onyenwechukwu Ezeagu, has urged stockbroking companies in Nigeria to align their business models so as to enjoy the anticipated opportunities that would emerge from the demutualised Nigerian Stock Exchange (NSE).

Following its approval to convert into public company by the Securities and Exchange Commission (SEC) and Corporate Affairs Commission (CAC) last week, the NSE would henceforth operate as a profit making organisation under The Nigerian Exchange Group Plc(NGXGroup ) with three subsidiaries.

Addressing securities dealers at a webinar themed: “The future of securities dealing business in Nigeria post demutualisation of NSE,” Ezeagu urged ASHON’s members to align their business models with the new market structure and reality.

He said: “The changes that this new orientation will bring in the business model of the exchange may impact our own operating models as securities dealers.

“However we anticipate that there must be responsibilities and risks attached to every relationship, some of these risks may crystalise, some are not within our radar, we know that researchers usually expect some serendipity results and make provisions for it just like we try to do in this matter.”

According to him, the Governing Council of ASHON has been deliberating on proactive measures to take in order to realign their business model and ensure the sustainability of members’ businesses in the changes that may follow the Demutualisation.

“In this wise, the council resolved to engage with other exchanges (platforms) with a view to creating avenues for our members to diversify and sustain their businesses and enhance their earnings base. Such platforms include the Lagos Commodities and Futures Exchange (LCFE), the NASD, and FMDQ. “It is important for all securities dealers to understand the changes that may come along with the new market structure. We need to prepare well in order not to be caught unawares,” Ezeagu said.

The ASHON boss noted that there were involved in the demutualisation process with the council and management of the NSE from inception and participating in the various decision inputs and committee memberships.

” We engaged vigorously and achieved our aim of protecting the interest of our members. Our expectations on the completion of the demutualisation process are that we shall have shares credited to our accounts as shareholders and the demutualised Nigerian Stock Exchange will become an aggressive profit oriented entity, ” he said.