NIGERIA: NGX Announces Relaunch of Market Making Program

Thursday October 21 2021

On 14^th October 2021, the Nigerian Exchange Limited (NGX) announced the relaunch of its Market Making program. The back of the review of its rules to provide the flexibility to implement diverse Market Making programmes across all asset classes listed on the Exchange, as approved by the Securities and Exchange Commission (SEC) effective 4^th October 2021

Market Making occurs when a Trading License Holder provides continuous two-way quotes – both buy or sell prices – to the market on selected securities during the trading day. Essentially, market makers display the amount they are willing to buy or sell a security and the guaranteed number of units. Once they receive an order from a buyer, they sell off from their own inventory, ensuring that the order is completed.

NGX first launched the Market Making program in 2012 in an effort to improve liquidity and increase efficiency across asset classes. This relaunch takes into consideration the evolving needs of stakeholders and will allow for periodic adjustments to meet the objectives of the programme.

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