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Okereke-Onyiuke Urges DMO to Trade on the NSE
- By Bukola Idowu
- Published January 18th, 2010
- SportWorld
- Unrated
PROFESSOR Ndi Okereke-Onyiuke the director general of the Nigerian Stock of Exchange (NSE) has urged the Debt Management Office (DMO) to consider migrating trading on the Over-the-Counter (OTC) to the NSE trading platform.
She made this known during the world press briefing last week in Lagos.
Onyiuke said, “For the purpose of transparency and pricing efficiency, the exchange should make the request that the DMO consider migrating trading on the OTC to the NSE trading platform, which has the technology to deliver on transparency and efficiency. It is significant that, contrary to local argument that bonds are better traded OTC”.
According to her, “Last year, the London Stock Exchange launched a new retail bond market for the UK. Also, the market would be order-driven, as against the contention in certain quarters here that a liquid bond market must be quote-driven”.
She stated further that, the original intention in the organisation of the government bond market was to replicate the bond market of South Africa,
Onyiuke noted that the exchange of South Africa by the JSE Securities Exchange should cause the DMO and Securities and Exchange Commission (Sec) to review the extant strategy for reactivating the Nigerian bond market.
The issue of bond trading and investing has taken on more importance recently as a result of the problems suffered in Dubai. As a result of the near default by DubaiWorld, bond investors worldwide are starting to review their exposure to sovereign and quasi-sovereign debt in order to avoid any potential default or liquidation issues. Along with our recent classification by the USA, Nigeria may likely experience a lesser participation by international investors in its bond market.
She made this known during the world press briefing last week in Lagos.
Onyiuke said, “For the purpose of transparency and pricing efficiency, the exchange should make the request that the DMO consider migrating trading on the OTC to the NSE trading platform, which has the technology to deliver on transparency and efficiency. It is significant that, contrary to local argument that bonds are better traded OTC”.
According to her, “Last year, the London Stock Exchange launched a new retail bond market for the UK. Also, the market would be order-driven, as against the contention in certain quarters here that a liquid bond market must be quote-driven”.
She stated further that, the original intention in the organisation of the government bond market was to replicate the bond market of South Africa,
Onyiuke noted that the exchange of South Africa by the JSE Securities Exchange should cause the DMO and Securities and Exchange Commission (Sec) to review the extant strategy for reactivating the Nigerian bond market.
The issue of bond trading and investing has taken on more importance recently as a result of the problems suffered in Dubai. As a result of the near default by DubaiWorld, bond investors worldwide are starting to review their exposure to sovereign and quasi-sovereign debt in order to avoid any potential default or liquidation issues. Along with our recent classification by the USA, Nigeria may likely experience a lesser participation by international investors in its bond market.
