The Nigerian Stock Exchange (NSE) on Tuesday appointed 13 supplementary market markers to deepen activities in the capital market.
Mr Ibrahim Jalo-Waziri, NSE Executive Director, Business Development, disclosed this in Lagos on Tuesday.
He said that the 13 unveiled supplementary market makers were selected out of 23 that applied.
Jalo-Waziri said that the criteria used for the selection were the performance capability, financial capability, compliance history and operational history.
He said that the selected supplementary market makers would complement the activities of primary market makers introduced in September to ensure liquidity in the market.
Jalo Waziri said that the minimum requirement for the supplementary market maker was N250, 000, adding that the new companies could qualify as primary market markers if they performed very well.
The executive director said that all equities listed on the NSE were now qualified for market making activities with exception of those trading at 50k par value.
He also said that circuit breaker for all quoted stocks on the NSE from Tuesday would now be 10 per cent except stocks trading at 50k.
Before now only market making stocks were allowed to move up to 10 per cent while others remained at five per cent.
The News Agency of Nigeria (NAN) reports the supplementary market makers are Greenwich, FBN Securities, Stanbic IBTC Securities, Magnatis, Investment One Financial Services, Cordros and Partnership Investment.
Others are FSDH Ltd., Renaissance Capital, Capital Assets Ltd., UBA Holdings, Capital Bancorp and FCSL Ltd.
NAN reports that the NSE introduced market makers in 2012 to allow participants borrow securities in order to settle ‘buy order imbalances’ from customers.
Market making refers to the system of providing liquidity to securities through provision of bid and offer prices in the trading system.
A member of the exchange that undertakes the function of market making is called a market maker.
Market makers can be categorised according to the level of liquidity support they provide.