NG Clearing Limited formally launched its premier Central Counterparty Services in the Nigerian Capital market yesterday, December 9, 2021, at The Wings Complex, Ozumba Mbadiwe Avenue, Victoria Island.
The service is the first of its kind in West Africa and is established for the clearing and settlement of exchange-traded derivatives and commodities in Nigeria. In this, the NG Clearing’s role would be to improve the safety of the Nigerian capital market by delivering best-in-class post-trade services that manage counterparty credit risk and reduce system risk.
Amongst those present at the occasion were the Executive Governor of Lagos State, represented by the Permanent Secretary of the Debt Management Office, Mrs Alake Sanusi, Secretary to the Government of the Federation, Mr Boss Mustapha represented by the head of department multilateral monitoring and research, Mr Paul Kanu, Chairman, NGX Group, Otunba Abimbola Ogunbanjo, Chairman, NG Clearing, Mr Oscar Onyeoma OON, amongst others.
Commenting on the launch of the counterparty, Chief Executive Officer, NG Clearing, Mr Tapas Das said, “The CCP is basically a financial market infrastructure that interposes between the buyer and the seller and makes sure to guarantee the settlement which was the root cause of the 2008 crisis. The goal is to reduce systemic risk, promote market integrity and protect the financial market from experiencing some of the events that led to the crisis in 2008.”
Mr Onyema in his address said, “Today’s event is an epochal milestone, one whose relevance and impact would reverberate across the financial system…today marks a transition to an era we have earnestly looked forward to, an era of clear possibilities and opportunities. The NG Clearing dream was borne out of a firm commitment to position the Nigerian capital market as a stable and resilient market that offers local and foreign investors sound opportunities without compromising on global standards.”
He further stated that “One of the gaps identified was the absence of financial market infrastructure known as the CCP clearing house.”
Giving the closing remarks, Mrs. Aisha Ahmad CFA, Deputy Governor – Financial System Stability, Central Bank of Nigeria commended the efforts of the Nigerian Exchange Group Plc, central securities and clearing system Plc, and the diverse investors that have put together the critical platform, CCP.
She stated that considering the increased focus on intra and inter-African trade, the African Continental Free Trade Area, and the Pan-African payment and settlement system, NG clearing has chosen to launch the CCP at an auspicious moment providing robust and fully developed payments, financial systems and capital markets that are needed to thrive.