The Nigerian Stock Exchange (NSE) is to organize a three-day capacity building workshop for market makers designed to sharpen their skills on the floor of the capital market. A statement from the NSE, made available to PANA Friday, said the workshop was put together in collaboration with one of the New York Stock Exchange (NYSE) designated market makers, J. STREICHER Advisory LLC.
According to the statement, the workshop is also aimed at enhancing the knowledge of the trading industry, orders and order properties, market structures, order driven markets, informed traders and market efficiency.
Other goals include order anticipators, bluffers and market manipulation, market making tools, risk management, best practices and technology, among others.
“Global best practice has made it imperative for Capital Market Operators to be adequately informed and educated about the importance of market making to enable them institute high ethical values for the benefit of investors, their stakeholders and the communities in which they operate,' the Head, Product Management of the NSE, Mr. Dipo Omotoso, was quoted as saying in the statement.
The Chief Executive Officer of J. Streicher, Mr. Thomas Brown, noted that Market Makers in general add liquidity to the market depth, stressing that the continuity of the bourse will improve with the training which will also benefit listed companies as well as investors.
PANA recalls that the NSE introduced Market Making in April 2012 as one of the initiatives designed to facilitate market recovery.
A market maker serves as stabilizing force in the market.
Since the introduction of market-making programme, there has been a general restoration of investor’s confidence in the Nigerian Capital Market.
The Market has witnessed increase liquidity in market making stocks and also given rise to increased market participation rates by local investors.