NG Clearing gets approval to launch Central Counterparty Clearing House

September 29, 2020
14 Views

NG Clearing Limited has secured approval in principle from the Securities and Exchange Commission to launch clearing and settlement of Exchange traded derivative products, as Nigeria’s premier Central Counterparty Clearing House (CCP).

NG Clearing’s role as a CCP in Nigeria’s financial ecosystem is to ensure safety of the market by managing counterparty credit risk, which in turn, reduces systemic risk in the Nigerian capital market, by guaranteeing settlement of trades.

Speaking about the purpose of NG Clearing Limited, the Board Chairman, Mr. Oscar N. Onyema, OON, said: “Our main role is to improve the safety of our financial market by delivering best-in-class post-trade services that manage counterparty credit risk and reduce systemic risk.

“To mitigate these credit risks in an efficient and robust manner, we will interpose ourselves as a guarantor to both parties in a transaction, thus ensuring the successful execution of derivatives and other trades from various trade points in Nigeria. We intend to deliver an unparalleled CCP experience for the Nigerian financial market”.

The company will optimize deployment of its resources to achieve long-term value creation for its stakeholders using a state-of-the-art risk management framework, which complies with global best practices for mitigating settlement risk. Its risk based additional collateral requirement will ensure that capital deployed by clearing members is always optimal.

The company intends to deploy a competitive low-cost clearing fee regime for members. The company has sufficient financial resources, including a settlement guarantee fund, to cover participants’ risk exposures. Members will have access to a wide range of financial reports that equip them with extensive knowledge and enable them make informed decisions.

Reiterating the company’s aim, the Managing Director, Mr. Tapas Das, said: “NG Clearing shall be playing a key role in the financial market ecosystem in the region, upholding stability and safety of the marketplace, through efficient and timely settlement of derivative trades.

“The aim is to strengthen the country’s investment environment through solutions that systematically reduce risks, enhance operating efficiency, and minimize costs for all market participants, thereby serving as a catalyst to national development”.

NG Clearing is Nigeria’s first CCP, providing Clearing & Settlement of Exchange traded derivative instruments in the Nigerian Capital Market.

NG Clearing is promoted by The Nigerian Stock Exchange and Central Securities Clearing System Plc along with key stakeholders like the Nigeria Sovereign Investment Authority, Access Bank Plc, Consonance Kuramo Special Opportunities.

Others include Coronation Merchant Bank Limited, Greenwich Trust Limited, Union Bank Plc, UBA Plc and Association of Securities Dealing Houses in Nigeria.

You may be interested

Lekki Massacre: Forensic Analysis Proves Videos Of Killings Are Genuine (Photos)
News
14 views
News
14 views

Lekki Massacre: Forensic Analysis Proves Videos Of Killings Are Genuine (Photos)

Webby - October 25, 2020

Despite denials by the matter, the videos showing the killings at Lekki toll gate are real, it has been reported.…

Kannywood Actress, Zainab Abdullahi, Asks Northerners To Kill Nigerian Activist, Aisha Yesufu
News
9 views
News
9 views

Kannywood Actress, Zainab Abdullahi, Asks Northerners To Kill Nigerian Activist, Aisha Yesufu

Webby - October 25, 2020

Zainab Abdullahi (right) and Aisha Yesufu Zainab Abdullahi, a Kannywood movie star, has asked Northerners to kill popular human rights…

See The Moment A Thug Was Arrested As He Tried To Disrupt #EndSARS Protest In Czech Republic (Video)
News
7 views
News
7 views

See The Moment A Thug Was Arrested As He Tried To Disrupt #EndSARS Protest In Czech Republic (Video)

Webby - October 25, 2020

The thug was nabbed A video has emerged online showing the moment a thug was nabbed when he tried to…

Leave a Comment

Your email address will not be published.