Nigerian Exchange Group

From Wikipedia, the free encyclopedia
Nigerian Exchange Group
NGX Group Logo.png
TypeSecurities exchange
LocationLagos, Lagos State, Nigeria
Founded1961
OwnerNigerian Exchange Group Plc
Key peopleOscar N. Onyema, ,
CurrencyNaira (₦)
No. of listings360
Market cap₦28.26 trillion (January 9, 2020)
IndicesNGX All-Share
NGX Premium
NGX 30
NGX 50
NGX Corporate Governance Index
NGX Banking
NGX Consumer Goods
Websitewww.ngxgroup.com

Nigerian Exchange Group (NGX Group) Plc (the demutualised Nigerian Stock Exchange) is a leading integrated market infrastructure Group in Africa.[1] The Group services the largest economy in Africa and is strengthening the competitiveness of African economies to achieve global prosperity. [2]

NGX Group provides a wide range of services including listing and trading securities, licensing, market data solutions, ancillary technology, regulatory, real estate, and more, through its wholly-owned subsidiaries – Nigerian Exchange (NGX), a leading listing and trading venue in Africa; NGX Regulation Limited (NGX RegCo), the independent regulation company; and NGX Real Estate Limited (NGX RelCo), the real estate company. [3]

History[]

The history of Nigerian Exchange Group (NGX Group) formerly known as the Nigerian Stock Exchange, dates back to 15 September 1960 when the Lagos Stock Exchange[4] was founded. There were seven subscribers to NGX Group’s Memorandum of Association: R.S.V. Scott, representing C.T. Bowring and Co. Nigeria Ltd.; Chief Theophilus Adebayo Doherty; John Holt Ltd; Investment Company of Nig. Ltd.(ICON); Sir. Odumegwu Ojukwu; Chief Akintola Williams; and Alhaji Shehu Bukar.

On August 25 1961, operations began officially with 19 securities listed for trading. However, informal operations had commenced earlier in June 1961, inside the Central Bank building, with four firms as market dealers: nlaks, John Holt, C.T. Bowring and ICON (Investment Company of Nigeria).[5] The volume for August, 1961, was about 80,500 pounds and it rose to about 250,000 pounds in September of the same year with the bulk of the investments in government securities.[6]

In December 1977, the name was changed to The Nigerian Stock Exchange, with branches established in some of the major commercial cities of the country. By 1984, the All-Share Index was launched, which went on to hit the 1,000 mark in 1992, and 10,000 points by the year 2000.

2011 ushered in an era of digital transformation known as the X-Era, leading to the launch of the historic and robust technology platform, X-GEN in 2013. This enhanced direct market access and mobile trading technologies.

In 2021, the Nigerian Stock Exchange was fully demutualised changing from a member-owned, not-for-profit entity into a shareholder-owned, for-profit entity. The results of which saw The Nigerian Stock Exchange evolved into Nigerian Exchange Group Plc. (“NGX Group”), a non-operating holding company with three wholly-owned operating subsidiaries, namely: Nigerian Exchange Limited (NGX), the operating exchange; NGX Regulation Limited (NGX RegCo), the independent regulation company; and NGX Real Estate Limited (NGX RelCo), the real estate company.

Subsidiaries[]

NIGERIAN EXCHANGE LIMITED (NGX)

Nigerian Exchange (NGX), a wholly-owned subsidiary of Nigerian Exchange Group (NGX Group), is a leading listing and trading venue in Africa with its history dating back to 1960. It is an open, professional, and vibrant exchange, connecting Nigeria, Africa, and the world. [7]

NGX is a multi-asset exchange providing a home to the best of African enterprises listed on its Premium, Main, and Growth Boards; diverse fixed income securities; Exchange Traded Products (ETPs); Mutual and other investment funds. Through its vibrant secondary market, it provides domestic and international investors access to these securities. In addition, NGX provides licensing services, market data solutions, ancillary technology services, and more in the quest to be Africa’s preferred exchange hub.

As at July 22, 2021, NGX has 360 listed securities - 156 listed equities, 12 Exchange Traded Funds, 139 Fixed Income, and 53 Memorandum listings. The Exchange maintains a value-weighted All-Share Index formulated in January 1984 (January 3, 1984 = 100). Its highest value of 66,371.20 was recorded on March 3, 2008. The Exchange also uses the NSE-30 Index, which is a sample-based capitalization-weighted index, as well five sector indices. These are the NSE Consumer Goods Index, NSE Banking Index, NSE Insurance Index, NSE Industrial Index, and NSE Oil/Gas Index. NGX has collaborated with other capital market players to publish co-branded indices including Lotus Capital Limited, Meristem Securities Limited and Afrinvest Securities Limited.[8]

NGX continues to deploy innovative capital market solutions that provide a globally competitive platform for Issuers to raise capital, and investors to meet their financial objectives across markets and geographies while maintaining a seamless flow of information. NGX prioritises outstanding customer service and experience, creating loyal and delighted clients and stakeholders by elevating its ecosystem and provides a portfolio of globally competitive products and services that help customers achieve their financial ambitions. NGX is licensed under the Investments and Securities Act (ISA) and is regulated by the Securities and Exchange Commission (“SEC”) of Nigeria.

NGX REGULATION LIMITED (NGX RegCo)

NGX Regulation (NGX RegCo) is a Self-Regulatory Organisation (SRO) registered and authorised by the Securities and Exchange Commission (SEC) of Nigeria to provide regulatory services within the Capital Market. NGX RegCo provides regulatory services to other SROs such as securities exchanges, over-the-counter facilities, trade groups/associations, and other financial markets infrastructure. [9]

As an independent subsidiary of Nigerian Exchange Group Plc, NGX RegCo provides regulatory services to Nigerian Exchange (NGX) Limited under the terms of a Regulatory Services Agreement (RSA) and monitors NGX’s activities to ensure its institutions and agents comply with market regulations. In performing these functions, NGX RegCo plays a critical role in promoting just and equitable principles of trade, encouraging free and open markets, mitigating systemic risks, and protecting investors.

NGX RegCo also provides a wide range of services to corporate organisations including, consultancy services on corporate governance and sustainability, capacity development, risk assessments, whistleblowing, and compliance audits.

NGX REAL ESTATE LIMITED (NGX RelCo)

NGX Real Estate Limited (NGX RelCo), a wholly owned subsidiary of the Nigerian Exchange Group (NGX Group), was incorporated in the Federal Republic of Nigeria as a private limited company on June 29, 1974. NGX RelCo is in the business of acquiring, leasing, hiring, or part-exchanging any property, whether real or personal. [10]

NGX RelCo has a customised approach to managing every property, recognising that it manages a highly valuable asset and also manages a very personal one.

Regulation[]

NGX Group is regulated by the Securities and Exchange Commission.[11]

Associations[]

Nigerian Exchange Group is committed to the highest international standards. To support this commitment, NGX Group belongs to a number of international and regional organisations that promote the development and integration of global best practices. It is a member of the International Organization of Securities Commissions (IOSCO), the World Federation of Exchanges (WFE), Sustainable Stock Exchanges Initiative (SSE),[12] the SIIA’s (Software and Information Industry Association) Financial Information Services Division (FISD), and the Intermarket Surveillance Group (ISG). NGX Group is a founding member and executive committee member of the African Stock Exchanges Association (ASEA).

See also[]

References[]

  1. ^ "NSE completes demutualisation process".
  2. ^ "About NGX".
  3. ^ "NGX Services".
  4. ^ "History of NGX Group". Nigerian Exchange Group. Retrieved 2021-06-08.
  5. ^ Opening of Lagos Stock Exchange. The Financial Times (London, England), Thursday, June 15, 1961; pg. 5; Edition 22,417
  6. ^ Good Start on Lagos S. E. The Financial Times (London, England), Tuesday, October 24, 1961; pg. 5; Edition 22,528
  7. ^ "About Nigerian Exchange".
  8. ^ "NGX Indices". NGX.
  9. ^ "About NGX RegCo".
  10. ^ "About NGX RelCo".
  11. ^ "What We Do". SEC Nigeria. Retrieved 2011-06-08.
  12. ^ "Nigerian Stock Exchange joins United Nations Sustainable Stock Exchanges Initiative". UNCTAD. Retrieved 9 May 2014.
Retrieved from ""