The Nigerian Stock Exchange (NSE) and some market operators has unveil a new mobile online trading portals, known as Smart Trade for transactions at the stock market.
The new initiative being coordinated by the NSE is meant to reach the retail end of the market. According to the executive director, market operations and technology, Nigerian Stock Exchange (NSE), Ade Bajomo said online and mobile stockbroking has potential to tremendously improve the depth of the Nigerian capital market by widening investors’ base.
He noted that from the current retail trading investors base of five million, the stock market could leverage on increasing mobile and internet usage in Nigeria to grow retail investors base to some 25 million, which will create a win-win situation for all stakeholders.
The initiative which will enable investors to buy and sell on their own raised some concern about the job security of stock brokers in the market. But Bajomo pointed out that, its unfortunate that brokers are still at the level of executing orders for client, stressing that a broker is not only train to carry out buy and sell order, but they can also engaged in structured and corporate finance, investments advisory role among other value chains of services in the capital market.
Currently 70 stockbroking house have the capacity to leverage on the new initiative, while GTI Securities, Investment One Stockbroking International Limited, Meristem Securities and CSL Stockbrokers were the stockbrokers that commented about the product at the launching in Lagos.