NGX RegCo says leveraging technology for fairness, transparency in market

NGX Regulation Limited (NGX RegCo) has assured retail investors of its commitment to ensuring fairness and transparency in the capital market, as it aims to further improve investor confidence and drive financial inclusion in the retail investor ecosystem.

This was stated by Abimbola Babalola, head, market surveillance and investigations, NGX RegCo, during the NGX RegCo Retail Investor Workshop held virtually on Wednesday November 8, 2023. The webinar themed “Expanding Reach for More Impact: Deepening financial inclusion in the retail investor” featured experts who explored present landscape, identified of existing challenges, and presented solutions aimed at enhancing market participation and expanding access to market for retail investors.

Babalola noted that NGX Regulation has a mandate of protecting investors, saying, “In other to achieve this, at NGX RegCo, we ensure that all our rules are properly documented with interpretative guidelines issued alongside them. By going through these, everyone participating in the market will understand the rules and how it is being operated.

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“Most of what we do in the market is fully automated. For example, the trading engine has an algorithm devoid of human elements. We ensure that every participant observes the rule of the exchange, and we have technology driven methods of detecting unscrupulous elements trying to take advantage of the market.”

In his opening remarks, Jude Chiemeka, executive director, capital markets, NGX said it is essential to foster a market that provides everyone the opportunity to participate in the financial market if Nigeria is to fulfil the 95percent financial inclusion target by the end of 2024.

“At NGX, we believe that by deepening financial inclusion, we can unlock the true potential of retail investors and ensure they have the tools, knowledge and support to achieve their financial goals. It is important to take a moment to acknowledge the remarkable growth of retail investors in the Nigerian Capital market in recent years.

“Retail participation in equity markets increased from 28percent in 2022 to 35percent as of September 2023, according to the NGX market report,” he said. Chiemeka added that increased access and the use of technology played a pivotal role in this rise citing the importance of tools like X Mobile transformed the world of investing for all stakeholders involved.

On his part, Peter Omoregie, managing director, CardinalStone Securities Limited, implored retail investors to set clear financial goals when they decide to invest in the capital market. “Understand the risks involved and assess your risk tolerance,” he said. “Ask questions like ‘What do you have available in terms of resources to invest in and what kind of returns do you need to make’?” Omoregie added.