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Since the listing of MTN Nigeria on Thursday, May 16, 2019, a total of 105,301,759 shares valued at N12,231,997,316 have traded in three days. These trades were carried out by ten (10) dealing member firms in 134 cross deals/negotiated deals.
According to the rule book of the Exchange, “When a Dealing Member or Authorized Clerk has an order to buy and an order to sell the same security at the same price, the Dealing Member or Authorized Clerk may “cross” those orders at a price at or within The NSE best bid or offer”
A variant of this is the negotiated deal, which describes a situation where a cross-deal is executed between two dealing member firms at a price which may be within the Exchange’s best bid or offer or with the approval of the Exchange, outside the best bid or offer.
Since cross deals involve clients of the same stockbroker on both sides of a trade, significant issues have been raised about the fact that brokers who haven't been involved in the cross deals haven't been able to trade on behalf of their clients. NSE isn't unconcerned about this
As an Exchange that champions transparency & equity for stakeholders in our market, we've received stakeholder feedback concerning our present rules on cross dealing & will consider the issues raised as part of our sustained efforts to ensure our market remains equitable for all
There appears to be a misconception that a concession was given to MTN Nigeria on the minimum free float required for companies listed on The Exchange. nse.com.ng/mediacenter/pr…
According to the Rules Governing Free Float Requirements for Issuers Listed on The Nigerian Stock Exchange, free float is defined as the number of shares that an Issuer has outstanding and available to be traded on The Exchange.
It includes all shares held by the investing public, and excludes shares held directly or indirectly by promoters, directors and their close relatives; strategic investors holding five percent (5%) and above of the issued share capital; or government.
NSE rules for listing on #NSEPremiumBoard require a Company to have a minimum free float of twenty percent of its issued share capital or that the value of its free float is equal to or above N40 billion on the date the Exchange receives the Issuer’s application to list.
MTN Nigeria met with the free float requirement of N40 billion. The free float of MTN at the time of listing was in excess of N160 billion.
Investor protection is very important to us and we have taken necessary steps to ensure that our market is fair and orderly. In 2016, we acquired NASDAQ’s SMARTS platform to proactively detect and deter manipulative tendencies, ...
... gather intelligence and execute risk-based supervision of flagged participants. We have also implemented other initiatives aimed at providing investors with timely information on the compliance status of our dealing members and issuers including BrokerTrax, ...
... our member compliance report, and Compliance Status Indicator (CSI) codes (for issuers). Also, we have institutionalized our investor education program and launched X-Academy in June 2017, because we have identified investor education as a veritable tool to galvanizing...
... informed investments and necessary step towards protecting investors in our market. Whilst we believe we have addressed the concerns raised, we will like to assure our stakeholders and the general public ...
that The Exchange will continue to uphold global best practices in its business operations and will sustain engagement with its stakeholders to continually develop regulatory frameworks that ensure our market completely reflects our values of ambition, fairness, and inclusion.
