Nigerian Exchange and Stanbic IBTC Stockbrokers advocate for increased securities lending and market making to boost market liquidity

This call was made during a webinar titled "Unlocking Liquidity in the Equities Market: The Role of Market Making and Securities Lending." Jude Chiemeka, Chief Executive Officer of NGX, emphasized that liquidity is crucial for a functioning capital market, noting that market strength is measured by efficient investor entry and exit, competitive bid-offer spreads, and quality price discovery. He stated that market making and securities lending are critical components of modern market infrastructure, commending the Securities and Exchange Commission for creating a supportive regulatory environment.

Nigeria's capital market has a combined capitalization of about N213tn. Jesse Van Rensburg, Head of Equities Sales Trading at Standard Bank Group, highlighted securities lending as a vital tool for market makers, aiding in two-way quotes and managing changing liquidity. He explained that access to securities lending provides market makers with flexibility to manage inventories and respond to market dynamics.

The discussion underscored the complementary relationship between market making and securities lending, with increased access to securities strengthening market makers' capacity to provide continuous liquidity. Stakeholders agreed that re