NASD records N2b transaction volume in December 2014

NASD OTC PLC has announced that the platform has recorded a transaction volume of N2billion as at December 2014.

The volume of transaction, according to the firm is however, higher than N1 billion achieved as at September 2014.

The number of participating institutions and authorized trader also rose from 86 to 140.

The Chairman of the company, Olutola Mobolurin at the 2014 yearly general meeting of the company, in Lagos yesterday, explained that the increase in transaction volume is an indication of increased participation in the OTC market in Nigeria as well as the liquidity and transparency the platform offers to the investing public.

He explained that efforts to woo the Nigerian pension community are underway, adding that the platform would witness greater participation from both local and foreign investors in a near future.

Mobolurin explained that the company earned N11.6million as trading commission during the year under review, against N0.4 billion achieved in the previous year.

“From membership fees, the company earned N12.4 million and N47.4 million from interest on bank placements, representing 57 per cent and 19 per cent drops from the previous year’s revenue of N29million and N58.7 million.

He attributed the reduction in membership fees in 2014 to the fact that mainly renewable fees were paid in 2014 while much higher applications and annual fees charged in the first year of membership swelled the 2013 figures.

With the approval of new rules for unlisted securities in April 2015, the Chairman expressed optimism that the OTC market would sustain the progress achieved so far, even as it would become a market of choice in Nigeria.

On the company’s inability to pay dividend during the period under review Mobolurin said; “In no distant future, we shall have course to celebrate and take home dividend cheques .

“We are doing everything possible to reverse the trend. We have course to be hopeful because apart from exceptional transactions, volume is up and performance impressive, if the momentum is maintained till the end of the year, next year, we shall have course to celebrate.

“Stockbrokers should show more interest in the market. Those who are on top league are making decent fees and commissions on their efforts. Everybody need to embrace the market with enthusiasm,” he advised.

The Managing Director of the company, Bola Ajomale wxplained that the management has continued to explore and develop opportunities to widen the depth of the OTC market in Nigeria.

He pointed out that NASD has engaged the private equity industry in order to create a secondary market for limited partners and sell down.

He added that the new pension reform act has been expanded to make securities on any recognized platform eligible for pension fund administrators to investment.