The Nigerian Stock Exchange (NSE) has announced the appointment of Chapel Hill Denham Securities Limited (CHDS) as one of its Primary Market Makers. The appointment of CHDS follows the resignation of WSTC Financial Services Limited, one of ten Primary Market Makers appointed in September 2012.
The Executive Director, Business Development, NSE, Mr. Haruna Jalo-Waziri, described the appointment as a positive step towards the improvement of market liquidity and depth. He added that, “Chapel Hill went through a rigorous selection process and met the minimum net capital requirement, as well as compliance history and operational standards, as set by The Exchange”.
According to The Exchange, the Market Making scheme is an initiative aimed at providing liquidity through the establishment of best prices and the narrowing of spreads. There is one Primary Market Marker and two Supplemental Market Makers assigned to every listed equity. Market Makers provide liquidity for their assigned stocks by quoting at and improving upon the national best bid and offer (NBBO).
