The Nigerian Stock Exchange has introduced an enhanced notification system to alert investors on any transactions on their account at a reduced charge
| By Maureen Chigbo | Mar. 24, 2014 @ 01:00 GMT
INVESTORS in the Nigerian Capital Market are in for good times. The Nigerian Stock Exchange, NSE, has commenced the reduction of the cost of its trade alert service by about N1.24 billion from March 2014 through the scrapping of the current charge of 0.06 percent of every trade on the exchange. It is also introducing an enhanced notification system, X-alert which will be charged at a flat fee of N4 per transaction.
Ade Bajomo, executive director of market operations and technology at the NSE, said that the enhanced X-alert was a service that would allow the investing public to know when a transaction has been made on their account. “Each time investors buy or sell a security, an alert is sent to them via a text message to the recipient’s mobile phone or via an e-mail to the recipient’s mailbox. So what that does is to bring real time notification plus transparency to the market at market rates while safeguarding against unauthorised sale or purchase of securities,” Bajomo said.
According to him, “The big difference for the investing community is that rather than pay 0.12 percent of every trade roundtrip, investors will now pay a flat fee of N4. Based on 2013 figures, the trade alert charge with the old system was some N1.25 billion; with the improved notification system, however, the annual cost of the alerts will be some N5.52 million based on a N4 flat fee – that is a reduction of N1.24 billion per annum in the cost incurred by investors transacting in the market.”
On his part, Kyari Bukar, the managing director of the Central Securities Clearing System, CSCS, said that the enhanced service had been delivered in real time to customers. He, however, urged that all customers to ensure that their brokers were provided with up-to-date mobile phone numbers and email accounts to enable the notification system work effectively and provide timely update on all account transactions. According to him, there are also the added benefits of effective fraud alert in cases of unauthorised transactions on account, reduction in time spent confirming trades and an enhancement of transparency between the trader and its clients.