Thursday, November 04,2021 / 3:34 PM / Ottoabasi Abasiekong for WebTV / Header Image Credit: Proshare

Stakeholders expressed optimism over thepossibilities of achieving an integrated African capital market ecosystem,through the instrumentality of the African Exchange Linkage Project, AELP.

This was part of the key takeaways fromthe maiden Proshare Online Trading Webinar which discussed the theme"Online Trading beyond Nigeria: The Case for a Unified Exchange".

It was an opportunity for the Nigerianfinancial and capital market ecosystem to explore the opportunities forinterconnectivity across the region, that enable seamless trading.

Keynote speaker Lina Tonui the ProjectManager, Africa Exchange Linkage Project said the AELP highlighted thefollowing as challenges facing African markets; insufficient liquidity, lack ofa diverse investor base, limited investment products & securities offering,and regulatory blockages and lack of harmonization.

She described the AELP as a project of the AfricanSecurities Exchange Association and the African Development Bank, that seeks to address the aforementioned challenges through the integration ofAfrican markets.

This according to her will unlock opportunities through Bonds, ETFs, REITs and Derivatives and improve the depth andliquidity in African Capital Markets.

She said "The key target is to mobilize Africa'slong-term savings and retail investors to finance development across the continentby opening cross-border flows of capital and improving the investment climate".

The MD/CEO of NASD Plc Mr. Bola Ajomale in hispresentation said data and analytics will continue driving the markets,stressing the need for the whole ecosystem to find creative ways to deploy andfind alpha returns.

He noted that the NASD has a robust and dynamicplatform that is up-to-date with the latest technology and integrated with thefinancial market infrastructure of the CSCS. He added that it can be accessedthrough mobile and web applications.

Bola Ajomale welcomed the initiative of AELP andstressed the fact that trading platforms are now resident on phones, whileintegration with the right technology for markets is overdue.

Mr. Abiola Razaq the Head, Corporate Strategyrepresenting the MD/CEO of the Central Securities and Clearing Systems Plc,informed stakeholders that the CSCS is focused on ensuring the safety ofcapital market operations and enhancing liquidity by deepening local investorparticipation in the  market.

He said the CSCS  is ready to support the AELPinitiative which is novel for the African markets and will go a long way inaddressing the  fragmentation of the financial market infrastructures andcatalyze the integration of markets in the region.

Razaq noted that the CSCS is currently not fullyintegrated into the Nigerian capital market ecosystem unlike the UnitedKingdom, that has an integrated market infrastructure.

Mr. Emmanuel Ogunji the Chief Financial Officer,e-Tranzact international in his presentation said the evolution of technologyhas transformed market operations. He noted that the introduction of new andmore user-friendly payment channels has enabled trading operations across themarket ecosystem.

Speaking further the CFO of e-Tranzact was highlightedthe fact that emerging technologies like Blockchain, AI & Robo-Advisors andBig Data will shape the future of financial and capital market activities.

Tumi Sekoni the MD, FMDQ Securities Limited in hercontribution to the discourse acknowledged the fact that technology hastransformed the financial market in the last 3 decades. She said theintegration between primary and secondary trading is executed throughelectronic trading.

Sekoni said electronification of the fixed incomemarket has evolved over the years, and one of the earliest development was theEMTS in Europe. She added that the rise of electronic trading has led to theinvolvement of new market makers who are proprietary trading funds, PTFs.

She listed the following as initiatives that has beenlaunched in Nigeria to boost the growth of the fixed income market, which are;FMDQ & Bloomberg E-Bond market and surveillance system, FMDQ Client tradingand support system and FMDQ Proprietary Market System Integration with CBN Settlementsystem.

The market leader reassured stakeholders that FMDQwill work to deepen the electronification of the fixed income market, that willmake it attractive to the retail investors.

Oluwafunto Olasemo , the Vice President, FinancialMarkets, AFEX Commodities Exchange in her brief presentation said thecommodities market is still at its nascent stage. She added that AFEX hasprovided a seamless transaction system through itsmobile apps.

Chief Customer Experience Officer, CFSWest Africa Mr. Rolu Adeola called for the development of tradingengines and platforms in the market that are customer-centric, unified, smoothand provide for continuous interactions in the system.

Giving some insights from the forthcoming7^th edition of the Online Trading report, Director of Research, Mr.Saheed Kiaribe noted that 68% of investors expect capital appreciation, while20% are focused on dividend. Also while 62% invest for the long term, while 38%expect returns.

He also added that in terms of onlinetrading the equities market  accounts for 69% of activities in the entireecosystem.

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