NSE launches broker oversight & supervision system

The Nigerian Stock Exchange (NSE) has launched
the Broker Oversight & Supervision System (X-
BOSS).
The system, which is the first of its kind in
the West African capital market, seeks to redefine
the compliance and regulation experience between
the Exchange and its dealing members.
Its CEO, Mr. Oscar Onyema, explained that the
system would automate the regulatory and
oversight function of the Exchange over its dealing
members and ultimately enhance the regulatory
experience.
He noted that the system would enable
the secure and electronic dissemination of dealing
members’ information in a structured and
sustainable manner, which would reduce the burden
and inconvenience of a manual system. He also
noted that it is a major step towards attaining the
vision of NSE’s becoming the leading Stock
Exchange in Africa driven by regulation, efficiency,
liquidity and innovation. It also demonstrates the
Exchange’s ambition and commitment to
implementing global best practices to increase
efficiency, improve transparency and drive
operational excellence.
The General Counsel and Head of Regulation at the
Exchange, Ms. Tinuade Awe, summarized the
system as a marriage between cutting edge, 21st
Century technology and robust, comprehensive
regulation both of which are essential elements of a
thriving capital market. She noted that the system
is designed to promote compliance as well as
reduce the financial and operational burden of
complying with regulatory requirements. She
asserted that the system would provide a secure
central repository for information about dealing
members of the Exchange, which is critical from a
regulatory perspective. The system would also
ensure that dealing members are abreast of their
regulatory obligations at all times.

Mr. Olufemi Shobanjo, the Head of the Broker
Dealer Regulation Department, remarked that the
Exchange is “confident that X-BOSS has ushered in
a new dawn on the regulatory program of the
Nigerian capital market.”
With the implementation of X-BOSS, the Nigerian
Stock Exchange continues to set the pace in
ensuring that our capital market is aligned with
global best practice as well as providing leadership
in promoting and integrating sustainability by
automating processes that hitherto were paper-
based.

Meanwhile, the Nigeria Mortgage Refinance
Company (NMRC) has listed N8 billion bond on
Thursday on the Exchange. The 15-year bond with
an interest rate of 14.9 per cent and a maturity date
of July 29, 2030 was issued under the company’s
N140 billion Medium Term Note Programme.

To engender market confidence in the credit
standing of NMRC as a bond issuing entity and
enhance access to the capital markets, the bond is
backed by a guarantee of the Federal Government
of Nigeria (FGN Guarantee) and has been accorded
public national scale long-term rating of AAA (NG)
(sf) by Global Credit Rating Company. In addition,
the bond was priced at a spread of 64 basis points
above the comparable FGN Bonds.

The listing of NRMC bond is expected to bring
numerous benefits to the Nigerian capital
market.For instance, it is expected that it will
further improve the market capitalization as well as
increase the participation of Pension Funds among
others. It is on record that 78 per cent of the N8
billion raised by NRMC in July was subscribed to by
Pension Funds.
With this listing, NMRC has joined the likes of DANA
Group Plc, Tower Aluminium Group and LA
CASERA that have their Debt instruments listed on
the NSE. Experts have expressed the view that
listing the shares of NMRC will further strengthen
as well as avail it cheaper funds to invest in the
mortgage industry.

According to the CEO of NSE, Mr. Oscar N. Onyema,
OON, the Exchange will continue to work with these
set of companies to increase their participation on
the Exchange with a view to getting their equities
listed on any of its boards. He said, “The NSE will
continue its engagement with the companies and
provide adequate thought leadership to drive its
listing objectives”.
NMRC is licence by the CBN to conduct mortgage
refinancing business in Nigeria. The company was
established with the public purpose of developing
the primary and secondary mortgage markets by
raising long-term funds from the domestic capital
market with a mandate to encourage and promote
home ownership in Nigeria by providing long term
financial facilities to the mortgage lenders, thereby
increasing the availability and affordability of
mortgage loans to Nigerians.