The West African Capital Markets Integration Council (WACMIC) has successfully completed its first direct trade between two West African countries under phase one of its integration programme to promote trade across member countries.
The landmark trade was between United Capital Securities and CAL Brokers, enabled by the Nigerian Stock Exchange (NSE) and Ghana Stock Exchange (GSE).
WACMIC was established to harmonize a regulatory environment for the issuance and trading of securities across the West-African sub region.
The successful implementation of Phase 1 through the Nigerian Capital Market will allow brokers not registered in the Nigerian capital market, remote access to the trading facility of the Nigerian Stock Exchange through a local sponsoring Dealing Member firm licensed by NSE.
Brokers in WACMI member countries can now trade on behalf of their clients and settle securities in Nigeria through local sponsoring brokers.
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 USD $2 million a day in capital market liquidity to the Nigerian market.
Commenting on the development, Edoh Kossi Amenounve, Chairman, West African Capital Market Integration Council (WACMIC) said, “The Council is proud to see the realization of this important target for regional integration. The success of the following phases depends on the participation of key market participants conducting transactions within the sub-region. 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.”
As the leading Self-Regulatory Organization (SRO) of the capital market to Africa’s largest economy, the NSE in conjunction with the GSE facilitated the trade conducted by United Capital and developed the framework for subsequent trades in the market.
“This inaugural trade affirms our commitment to regional integration and highlights the NSE’s resolve to partner with relevant bodies that will provide our 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,” stated Oscar N. Onyema, Chief Executive Officer of the Nigerian Stock Exchange.
The landmark trade between United Capital Plc. and CAL Brokers Ltd. signifies United Capital’s Pan African aspirations as it continues to expand its business dealings across the continent.
“United Capital is fully committed to the objectives of the West African Capital Market Integration Programme. 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,” stated Group CEO of United Capital, Oluwatoyin Sanni.
CAL Brokers Ltd, one of the leading brokerage/investment banking firms in Ghana has been at the forefront of innovation since inception. This landmark accomplishment for company is in line with the firm’s ambition to provide world-class investment services that adds value to all stakeholders.
Commenting on the trade, David Tetteh, CEO of CAL Brokers said, “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.”
The first trade was completed on 15 July 2015.