Securities Finance Industry News | Nigeria counts down to launch of CCP for exchange-traded derivatives

With its launch on Thursday, NG Clearing will claim the title of West Africa’s premier central counterparty (CCP).

The Nigerian Clearinghouse, which is owned by the Nigerian Stock Exchange (NSE), will facilitate the clearing and settlement of exchange-traded derivatives and aims to promote the safety and integrity of the Nigerian capital market.

Following its incorporation in 2016, NG Clearing says it was the first clearing house to gain approval from Nigeria’s Securities and Exchange Commission (SEC) to offer CCP services in the Nigerian market. Approval in principle was granted in September 2020, with final approval being extended by the SEC in June 2021.

This development aligns with NSE’s strategy to support the growth and development of the Nigerian capital market as a gateway to African markets.

The first live trades are expected to be cleared on NG Clearing’s platform in late December 2021 or early January 2022, according to sources close to the clearing house.

In preparation for its launch, NG Clearing has worked closely with capital market participants for educational and public information purposes. COO Ayonkunle Adaralegbe said, “As a new niche, we understand that there is a lack of knowledge in the market and the core of our strategy is to stimulate the market with training sessions from level that demystify derivatives clearing.”

NG Clearing CEO Tapas Das said, “We have left no stone unturned to ensure that Nigeria’s premier CCP is positioned to become Africa’s most trusted CCP.

On September 30, FMDQ Clear announced that it had also been approved by the Nigerian SEC to offer CCP services, with its launch to follow.

The two Nigerian central counterparties, NG Clearing and Delete FMDQhave been granted observer status in CCP12, the global association of central counterparties.

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