The Nigerian financial services sector is agog as all is now set for the formal launch of NG Clearing Limited, the first central counterparty (CCP) in West Africa, on Thursday, 9 December 2021.
A statement signed by Team Lead, Corporate Communication, Media Relations, Johnson Onowugbeda, says the launch precedes the trading of the first exchange-traded derivatives in the Nigerian Capital market and opens new opportunities for investors, stakeholders, and other players in Nigeria’s capital market.
“As the premier CCP in Nigeria, NG Clearing will facilitate the clearing and settlement of exchange-traded derivatives, manage counterparty risk, reduce systemic risk, and promote the safety and integrity of Nigeria’s capital market.” The statement read.
Since its incorporation in 2016, NG Clearing has achieved many first-of-its-kind milestones including the development of a world-class clearing and settlement system to enable seamless and safe clearing of derivatives across multiple asset classes and trading venues. NG Clearing also obtained approval from the Securities and Exchange Commission to provide CCP services in Nigeria. Recently, as an affirmation of the Company’s global outlook, NG Clearing joined CCP12, the global association of central counterparties.
The Chairman of the Company’s Board of Directors, Oscar Onyema, said NG Clearing’s emergence as “a CCP in Nigeria and the first out of West Africa is an epochal achievement, one that all stakeholders should be proud of as it represents the maturity and transition of the Nigerian capital market to a new era of clear possibilities”.
Speaking of NG Clearing’s role as a CCP, the Company’s Chief Executive Officer, Tapas Das, noted that “across the world, CCPs have emerged to strengthen financial markets, propelling them to growth and reinforcing existing layers of market safety. We have left no stone unturned in ensuring that Nigeria’s first CCP is positioned to become the most trusted CCP in Africa.”
As part of the build-up to the launch of NG Clearing, the Company has been engaging capital market stakeholders on derivatives clearing and settlement, and the role of a CCP. While engaging with stakeholders, the Chief Operating Officer, Ayokunle Adaralegbe, explained that “as a novel niche, the company understand that there is a knowledge gap in the market and the core of our strategy is stimulating the market with high-level training sessions that demystify derivatives clearing.” He also noted that the Company will expand the training engagements to the public soon.
The launch ceremony is a hybrid event (physical and virtual), and virtual participants can register ahead via https://bit.ly/NG-ClearingLaunch.