Nigeria to adopt NASDAQ X-Stream

Diane Alter – AHN News Reporter

Lagos, Nigeria (AHN) – In an effort to buoy investors’ confidence, the Nigeria Stock Exchange is inking a deal to adopt the NASDAQ trading platform.

The deal allowing the Nigeria Stock Exchange (NSE) to implement the NASDAQ X-Stream platform was signed Tuesday. The NSE says it hopes to go live with it by the second quarter of 2013.

The move is part of a string of reforms to overhaul the bourse and stoke investor assurance of the NSE’s business.

Using the NASDAQ’s platform will make the NSE more efficient and transparent. The adoption of the NASDAQ system also allows the NSE to relax restrictions on price swing, to operate during U.S. trading hours and allow short selling.

Nigeria is home to Africa’s second biggest bourse. While automated, the technology is antiquated, driven by prices rather than quotes.

The new system is projected to make the market more efficient, quicker, more liquid and easier for traders to use.

The NSE enjoyed rapid and rosy growth early in the last decade, but the worldwide financial crisis of 2008 caused a 60 percent decline in stocks.

The recovery has been slow going, with NSE equities tumbling 16.3 percent in 2011 on concerns about bad debt writedowns.

After roaring growth early last decade, a banking crisis caused stocks to drop by around 60 percent in 2008. Recovery hit a stumbling block in 2011, with a 16.3 percent fall on concerns over write-down’s of bad debts.

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