There was a strong indication recently that the World Federation of Exchanges (WFE) will soon endorse the application of the Nigerian Stock Exchange (NSE) to become a full member of the WFE. This followed the completion of inspection of the exchange’s facilities.
WFE is the association of 60 regulated exchanges around the world. But Johannesburg Securities Exchange (JSE) Limited and Egypt Stock Exchange are already full members of the WFE, while the NSE has remained an associate member with an observer status over the years.
As part of efforts to reposition the exchange making it the gateway for investments into Africa, the NSE began the process of becoming a full member in 2010 by former Interim Administrator of the NSE, Mr. Emmanuel Ikazoboh.
Oscar Onyema Chief Executive Officer of the NSE continued with the process by submitting a formal application for membership. According to source, officials of WFE have completed the scrutiny of the NSE with the view to approving the application.
Head of Strategy, NSE, Yvonne Mordi, confirmed that the application of the exchange is in progress.
“The NSE’s application for full membership in the WFE is in progress. The federation completed its inspection of the NSE last month, and met with a handful of market stakeholders as part of the process. We look forward to receiving a favourable response from the Federation in the coming months,” she said.
Market operators said NSE becoming a full member of the WFE would be beneficial as it would attract more investments to the market.
According to WFE there are some criteria that would qualify exchange for full time membership. They include: being noteworthy within its country of origin, that it must be a significant factor within the country’s economy; it must be regulated and manage by an independent capital markets authority, which must be an ordinary member of International Organisation of Securities Commissions (IOSCO). The NSE last year became an affiliated member of the International Organisation for Securities Commissions, which brightened the exchange’s chances of becoming a full member of the WFE.
Ms. Arunma Oteh Director General of Securities and Exchange Commission (SEC) described the admission of NSE as affiliate member of IOSCO as a good development and that the action will improve foreign patronage of the Nigerian market.