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W’African capital markets strike first cross-border deal



In from Success Allantee …

A new vista opened for the integration of the capital markets in the West Africa with the successful take off of the first phase of the implementation of the West African Capital Market Integration (WACMI) Programme. The take-off was marked by the completion of the first trade between Nigeria-based stockbroking firm and Ghana-based stockbroking firm.

The first direct trade between the two countries was between Nigeria’s United Capital Securities and Ghana’s CAL Brokers, enabled by the Nigerian Stock Exchange (NSE) and Ghana Stock Exchange (GSE). Other West African stock exchanges such as Bourse Regionale des Valeurs Mobilieres SA are expected to initiate similar deals which could be worth an additional $2 million a day in capital market liquidity to the Nigerian market.

The West African Capital Markets Integration Council (WACMIC) confirmed the first trade yesterday. WACMIC was established to harmonize a regulatory environment for the issuance and trading of securities across the West-African sub region.

With this, stockbrokers in WACMI member countries can now trade on behalf of their clients and settle securities in Nigeria through local sponsoring brokers.

Chairman, West African Capital Market Integration Council (WACMIC), Edoh Kossi Amenounve, lauded the take off of the first phase and urged market participants across the region to actively support in the realization of the integration objectives.

“Therefore, the support of all stakeholders across the West African capital markets is key to the success of the regional capital market integration program, which is gaining ground,” Kossi Amenounve said.

Chief executive officer, Nigerian Stock Exchange (NSE), Mr. Oscar Onyema, said the inaugural trade affirmed the commitment of the NSE to regional integration and highlights the Exchange’s resolve to partner with relevant bodies that will provide its various stakeholders’ with platforms that will make them globally competitive.

“Through initiatives like this, we look forward to more cross border activities that will increase liquidity in the Nigerian capital markets, while strengthening our peers in West Africa. I extend my sincere congratulations to all parties that made this deal a reality,” Onyema said.

In her comment, group chief executive officer, United Capital, Oluwatoyin Sanni, said United Capital is fully committed to the objectives of the WACMI programme.

Read also: African Capital Market operators form single body

“Having participated on the WACMI Technical Committee since inception, we are truly honoured to conduct this groundbreaking trade with CAL Brokers, a member of the Ghana Stock Exchange. This underscores our unwavering aspiration to make our excellent services available, in due course, to every African state, entity, and individual,” Sanni said.

Chief executive officer, CAL Brokers, David Tetteh, noted that the landmark trade was in line with the firm’s ambition to provide world-class investment services that adds value to all stakeholders.

“We are happy to have laid the foundation blocks for this great initiative and we look forward to the overall success of the WACMI. After pioneering Direct Market Access (DMA) in 2009, Cal Brokers is extremely proud of its continued role in the deepening of Capital Markets in the West African sub-region,” Tetteh said.

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