The Nigerian Stock Exchange has signed an agreement with 12 market data vendors to enhance the distribution of data in the market.
This, according to the Chief Executive Officer of the NSE, Mr. Oscar Onyema, is part of efforts aimed at transforming the nation’s bourse and making it more accessible to international investors.
Onyema, who was speaking at the NSE market data interactive forum in Lagos, said the plan by the Exchange to go global was not only aimed at attracting foreign investors, but at ensuring that it met up with the global standards.
He said it had entered into agreements with 12 market data vendors to create a joint index, even as it had made it mandatory for all distributors of its market data to sign agreements with the Exchange.
Onyema also explained that the Exchange has so far expended $10m to replace its current trading engine before the end of the third quarter of the year, add that after the development, the full cost would be deducted from the revenue with the additional income split between both parties.
He said, “What we are trying to do is to provide structure and standardise the redistribution of data so that investors that want to use the data will know exactly what they are getting, when they are going to get it and the quality of what they are getting.
“With a payment of $25,000 and N1.2m for international and local vendors, respectively for the charges, we have tailored it in such a way that it is actually cheaper for the local vendors. If you redistribute the data without licence or permission, you are violating our rules; there are two agreements to be signed for dealing member to redistribute the price list for free.”
Onyema added that the NSE had recently contracted an American company, Jordan & Jordan, to benchmark the Exchange with other markets on the continent and around the African globe, while explaining that the outcome was that the NSE should evolve an ideal method of providing market data in a very professional manner.
He said, “We have been able to make our market data stronger since we engaged FSID, and we have rolled out 30 market data products, which we have been able to deliver through different platforms. The market data is now more accessible than before.
“The Exchange has decided to make it mandatory for the distributors of the market data to sign memorandum of understanding in line with the resolution of the council of the Exchange and that the distributors of the value added services of the data will have to pay various subscription fees in order to keep up with the high level service delivery.”