Introduction
In simple terms, the dealing members of the NSE- Nigerian Stock Exchange- are institutions who are licensed by the Exchange as stockbrokers. They can buy and sell securities listed on the Nigerian stock exchange on behalf of the public.
The Nigerian Stock Exchange defines a dealing member company as “A company incorporated and registered under the company’s Act which the exchange issued a license to deal in stocks, shares, and other securities listed on the exchange”.
There are currently 184 active dealing members in the Nigerian stock exchange. IF you’re having issues with finding a deal, you can go to the Nigerian Stock Exchange website. They have made it easier for you to locate their dealers through their directory listing feature. The list shows dealing members who are active, inactive or the members that the SEC has directly deactivated.
Becoming a Dealing Member of The NSE
To be eligible for membership, a prospective dealing member must meet the requirements of the NSE. The conditions in the Rules For Registration as a dealing Member of the NSE.
The Requirements
The basic requirements as stated in the Rules For Registration as a dealing Member of the Nigerian Stock Exchange is listed below;
- The Securities and Exchange Commission (the SEC) will register a Dealing Member as a Broker, or Dealer or Broker/Dealer.
- A Sub-Broker shall not get a from The Exchange, shall not a Dealing Member of The NSE.
- The Exchange will permit a Dealing Member Firm to conduct operations on its floors or any remote access to their trading engine;
- The Dealing Member Firm will be a “Member of The Nigerian Stock Exchange.”
- It will the The Dealing Member duty to shall always be to maintain the standard minimum capital requirement. The (SEC) will set this standard occasionally;
- The Exchange shall monitor the capital capabilities of the Dealing Member Firm daily.
- If the Dealing Member Firm capital capacity does not meet the minimum requirement, the Dealing Member shall immediately face suspension. The member will also have to shore up its capital in (24) hours.
A Dealing Membership can only obtain License Once the Member’s application is successful and has met all requirements. These requirements also include the Minimum Operating Standards.
Further Requirements
As part of the membership service, every Dealing Member pay a yearly fee for the following
- Trading terminal maintenance
- renting of “space” on the NSE Trading floor
- Membership fee for
- Authorised Clerkship payment for Authorized Dealing Clerks
Conclusion
The (NSE) offers its Members an active, reliable and highly controlled marketplace. Members can trade in securities on The NSE with the highest level of assurance. NSE also creates an avenue where the Dealing Members can connect with their clients and enjoy fantastic investment options in the big Capital Market.
You will most certainly, benefit from The NSE’s top-notch trading engine (X-GEN), and at the same time, experience first-class services and support. Lastly, as the NSE’s Rules and Regulations govern all Dealing Members, these members must be in full compliance.
To find out more about becoming a dealing member, you should visit the website of the Nigerian Stock Exchange. Good Luck.
See also: Listing Requirements of the Nigerian Stock Exchange