Derivative Market: SEC to enforce disciplinary action against defaulters of NSE rulebook
The Securities and Exchange Commission, SEC has charged members in the derivative market to ensure strict compliance with the Nigerian Stock Exchange’s NSE rulebook as failure to do so will attract disciplinary action.
The rulebook stated that the NSE was licensed to bring disciplinary action against a former member pursuant to Rule 3.11.4 of this derivatives rulebook.
It said members in the derivatives market should ensure strict compliance with the rules, adding that where the Exchange believed there had been a breach of the derivatives rules by a member, it might commence disciplinary action against such member under the disciplinary procedure of the Exchange.
It said the draft rules were presented to the Rules and Adjudication Committee of Council at the RAC meeting of November 10, 2017, and approved for exposure to stakeholders for comments.
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The NSE added that the draft rules were exposed for stakeholders’ comments from December 2017 to January 2018, after which RAC considered the draft rules, and stakeholders’ comments in February, and approved the draft rules for submission to the National Council of the Exchange.
The council approved the draft rules on March 28, 2018, for submission to SEC and submitted on April 10, 2018.
The NSE said the rules were put in place to promote and maintain at all times the integrity of the market managed by it, as well as to ensure that the business carried out through the NSE platform was conducted in a fair, just and equitable manner to afford proper protection of investors.
It added that the rulebook would be binding on members in their relationship with the Exchange, between members concerning the business and as members of the Exchange with the general public.
Part of the rules stated that all transactions on the Exchange derivatives market would be effected automatically on the order book or through the Exchange derivatives trade reporting system.
