LATEST UPDATES
Card-image-cap

Market | Online Trading

Experts Examine Opportunities for Blockchains and DLT in the Nigerian Capital Market

Dec 01, 2022   •   by Ottoabasi Abasiekong   •   Source: WebTV   •   eye-icon 207 views

The fourth industrial revolution (4IR), characterized by emerging technologies, is transforming the economic and financial market landscape of nations worldwide, including the capital market. Financial analysts have observed that Distributed Ledger Technology (DLT) is a recent market development that shows enormous opportunities for developing online financial trading. Key stakeholders at the 2022 Online Trading webinar organized by Proshare Nigeria discussed the theme "Online Trading in the Age of Distributed Ledger Technology (DLT): Improving Investors Trading Experience."

 

The keynote speaker Dr. Olufemi Oyenuga, Chief Digital Officer, Technology Services Division, Nigeria Exchange Group (NGX), said Distributed Ledger Technology helps transfer assets, build value, and enables the control of the ownership of products and services.

 

According to him, the DLT will allow market stakeholders to have a consensus on records and the storage process. He said, "The DLT gives us four things a shared ledger, shared contracts, privacy and trust. 

 

He listed the following benefits of adopting DLT: cross-border payments, cost reduction & enhanced efficiency in the insurance industry. He pointed out that in terms of regulation, there is no authority to oversee a truly international effort.

 

Speaking further, he noted that the benefits of Blockchain are its time-saving effects on transactions from days to near instantaneous, it reduces the cost of overheads and intermediaries, reduces risks from cybercrime to fraud and increases trust through shared processes and record keeping.

 

Mr. Babangida Yahaya, Head Depository Services, CSCS, noted that DLT was still emerging across critical sectors of the economy. He mentioned the following risks for the DLT area: technology, operation & governance, implementation, and legal & regulatory framework.

 

"The market needs to agree on how it plans to adopt the DLT to improve financial and capital market services/operations in the entire ecosystem." The CSCS official added, "In trying to deepen our market and increase confidence, transparency will play a critical role."

 

In his presentation, Mr. Bola Ajomale MD, Sophus, stated that there is a positive attitude from the Nigerian capital market towards adopting Distributed Ledger Technology.

 

For the DLT to work correctly in the capital market, he said there should be a collective effort across the stakeholders to adopt the technology, even as he acknowledged that the significant issues would be the risks and interoperability.

 

In his contribution, Mr. Yusuf Oguntola, the Chief Technology Officer of AFEX, noted that  "If we create innovations around yield improvements, land expansion, post-harvest loss through DLT, a total of 155% will be added to the current total crop production statistics in Africa".

 

In her presentation, Chinwe Ekeh, Head of Operations & IT, NASD Plc, said DLT and Blockchain could resolve issues around reconciliation, transactional history and unauthorized deals.

 

Mr. Rotimi Ayodele-Oba, the Chief Technology Officer of the Lagos Commodities and Futures Exchange (LCFE), speaking on DLT, highlighted the various benefits it offers the ecosystem, with the priority areas being: tokenization, direct regulatory oversight, cold storage data, direct clearing, multi-asset trading, depository, settlement and multiple access for participants.

 

WATCH VIDEO


Related items.

Get the App

apple-store  play-store

Connect with us


Proshare is a professional practice focused on delivering research and information services to bridge the gap between investors and markets; by delivery on credible, reliable, and timely engagements through the following areas — Impact Research, Market Intelligence, Strategic Advisory, Stakeholder Relations & Digital Media.