No fewer than 158 Dealing Member firms of the Nigerian Stock Exchange (NSE) have been expelled between August 1, 2014 and January 31, 2019.
This is contained in the ‘Broker TraX’ of the NSE. The expulsions of affected firms took effect at varied dates.
In its bid to improve investors’ confidence in the market, the Exchange commenced a strong campaign against market infraction by its Dealing Members by introducing the Dealing Members compliance report, called BrokerTraX.
A check on the report shows the regulatory hammer fell on the firms on different dates. The effective dates varied from August 1, 2014; December 11, 2015; March 30, 2017; June 25, 2018; December 13, 2018; May 25, 2017; January 26, 2017; to January 31, 2019.
The report did not specify the particular infractions for which these members were expelled.
Aside the expelled Dealing Member Firms, a look at the ‘Status of Dealing Member Firms as at June 10, 2019’ shows that the NSE has 186 Active Dealing Member Firms; 37 inactive Dealing Member Firms; while 24 were reclassified to Sub-Brokers.
Also, five Dealing Member Firms were deregistered by the Securities and Exchange Commission (SEC) while two discontinued Business Operations.
With the BrokerTraX, investors can make more informed decisions about where to invest by viewing names of Dealing Member Firms that have been found liable for contravening market rules.
The goal is to reduce contravention of market rules to its barest minimum in line with the deliberate and sustained effort to restore confidence.
A Dealing Member Firm is considered an inactive firm where the firm has been suspended for a period of 3 or more months by the Exchange or SEC; or has not recorded any activity for a period of 3 or more months without being suspended.
