Members of the Association of Securities Dealing Houses of Nigeria (ASHON) have been urged to deploy a new strategic direction to cope with the challenges of the operating environment. 

Before the demutualization of the former bourse, The Nigerian Stock Exchange, now Nigerian Exchange Limited (NGX), ASHON had embarked on rebranding, including repositioning by its Dealing Firms through massive investment in Information and Communications Technology (ICT) to upscale skills and improve competitive edge. 

Addressing the members during the Annual General Meeting (AGM) at the weekend, the Chairman, Mr. Sam Onukwue, advised the members to ensure speedy implementation of their respective new business models to widen the scope of operation and deliver superior products and services to numerous customers. 

" We came into office some six months after the Demutualisation of the erstwhile Nigerian Stock Exchange, which signalled a paradigm shift in the operating focus of the Exchange. This also redefined our status from Dealing Members to Trading License Holders and shareholders and necessitated some adjustments to our operating model. It, therefore, became imperative for us to be proactive in guiding our members. 

"To this end, the Council organized a retreat themed: "Rethinking the Business of Securities Dealing in a Changing Market Structure." Participants at the retreat included Council Members, Trustees and past Chairmen of ASHON. The retreat identified the need for our members to reposition, restructure and upscale their businesses to cope with post-demutualization challenges. The critical role and impacts of technological advancement on our businesses were critically noted.", says Onukwue. 

Commenting on the Trade Group's activities for the review period,  Onukwue noted that ASHON engaged with the Securities and Exchange Commission, SEC on several issues,  including an unprecedented increase in the renewal of annual registration fees of Capital Market Operators (CMOs), participation in the Commission's Financial Literacy Committee and holding of Quarterly Meetings with Central Securities Clearing Systems PLC, and NG Clearing.

According to him, ASHON maintained a cordial working relationship with the NGX Group, despite changing its operating models as a demutualized Exchange. The Association has also been working closely with NASD PLC, FMDQ and Lagos Commodities and Futures Exchange (LCFE) for seamless trading of its members on the platforms of the various markets. 

Onukwue noted that the Association has continued to collaborate with the Chartered Institute of Stockbrokers (CIS) on various issues, including the CISI Bill, review of the ISA Act, reintroduction of Capital Gain Tax (CGT) and admission of CFA holders, among others.

He explained that to remain a strong voting block in the demutualized Exchange, ASHON was already working on a voting trust arrangement. 

He stated that ASHON had continued to play active roles in the ongoing initiative of African Stock Exchanges on the African Exchanges Linkage Project, which began a few years ago.

ASHON has created a robust Research Unit by signing a Memorandum of Understanding (MoU) with Unicorn Capital to provide research services for members by subscription. The Trade Group has continually contributed to market development through investor education and constructive engagement with the government and capital market regulators.