The Nigerian Stock Exchange recently said its alliance with JP Morgan Chase to facilitate in-depth capacity building programme on the derivatives market. JP Morgan Chase & Co. is a leading global financial services firm and one of the largest banking institutions in the United States, with operations worldwide.
Hence the firm was one of the oldest financial institutions in the United States, with a history dating back over 200 years.
The bourse injected that the decision is consistent with the NSE’s commitment to developing a thriving derivatives market in Nigeria.
It further explained that the collaboration with JP Morgan is expected to promote the development of derivatives in Nigeria. It will do this by helping to bridge the knowledge gap on derivatives investments and trading strategies, through knowledge transfer.
The NSE stressed that, the believes that the introduction of derivatives will expand the market and enhance liquidity.
It added that it will also help mitigate against price, duration and other financial risks that may arise from sophisticated financial transactional activities.
The Exchange kicked off its derivatives project in 2015 following a market-wide feasibility study concluded in 2014 which pointed to prospects for product creation in the equity, debt, currency, energy and commodity markets.
Recently, a team from JP Morgan Chase led by Leenart Sjoerd, Global Head of Corporate Bank & Head, CEEMEA, visited the Exchange and were appreciated with a Closing Gong ceremony.