The Nigerian Stock Exchange has indicated that a decision over going public will soon be finalised, Oscar Onyema, chief executive of the bourse, told the Financial Times in an interview.
Our footprint is Africa — [the overhaul] is a catalyst for developing African markets. We’re looking at making sure investors have open access to markets, and make it easier for foreign investors to access the market.
The exchange is also looking to build out its equities, fixed income and exchange-trade funds business and begin trading futures and options, according to Onyema.
It has already upgraded its equity trading platform with technology provided by NASDAQ. It also plans to build a clearing house, although it is still reviewing its plans, according to Onyema.
The JSE remains the largest venue in sub-Saharan Africa, with a domestic market capitalisation of $900bn, compared to the $49bn of the NSE.
So where do we think this latest quip by the NSE CEO belongs?
Probably in the same place as this shameless reversal by Onyema in January, when his $1 trillion valuation dream finally hit reality.
Instead of engaging in meaningless interviews in London, Oscar Onyema and his team should figure out how to introduce equity options (calls and puts), on the Nigerian bourse, so investors can short overvalued stocks or hedge their bets when going long.
Having a long only market in 2015, is negligence at best and criminal at worst since it’s is really not rocket science to introduce derivatives that were first traded more than 300 years ago in the Netherlands in 1637 during the Dutch Tulip bulb mania.
The CEO has been in office for about 4 years now; we at Nairametrics believe there should be less talk and more action.