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EXCHANGE LIVE DATA TO IMPROVE TRANSPARENCY

By NBF News

Exchange live data to improve transparency
By Daniel Osunkoya
March 17, 2010 12:29AM
Ndi Okereke-Onyiuke tries to convince her listeners of the importance of the live data Photo: NEXT

The new live broadcast of the Nigerian Stock Exchange (NSE) market data on Reuters' system is expected to improve transparency and market participation, a Thomson Reuters' head has said.

Speaking at the Lagos floor of the stock exchange, on Tuesday, to celebrate the partnership between the NSE and Reuters, Busisa Jiya, the Manager, Africa Markets Division, of Thomson Reuters, said the live data feed, which was launched on December 15, 2009, gives an opportunity to clients in Nigeria and the rest of the world to actively participate in the Nigerian economy.

Thomson Reuters is an online source of information for businesses and professionals.

'This broadcast will help us (Reuters) to improve the ability of the world to see Nigeria and have access to information live; whether in the form of data, in terms of stocks prices, or on how we can improve our news coverage on political and economic issues,' Mr. Jiya said.

He added that Reuters and the NSE are optimistic that the real-time data feed that is been celebrated will bring about liquidity. According to him, illiquidity in the market will soon end because 'all our global clients will now be able to participate in trading and stock operations in Nigeria, and we will be able to provide our clients with answers relating to risk associated questions.'

'We've had a long relationship with Nigeria and Africa since 1960; then from 1986, with the directorate of the NSE. Today marks the day we reiterate our commitment that we will be here for ever. We will continue to improve the partnership we have formed,' the senior company officer said.

Asked what the profit sharing formula would be for both organisations in the live date feed partnership, Musa Elakama, assistant director general of the stock exchange, said, 'There is no profit sharing between us (the NSE) and Reuters because we are not paying them any money. It is free of charge. We've been together since 1986.'

Subscription fee
Matthew Dago, a member of the Reuters team, said the live data feed subscriber will pay a nominal fee of about N250 per month. 'The feed can be accessed on mobile phones and the Internet. The benefit of this is that it will help subscribers in investment decision making,' he said.

'We hope to see more products made available in the market due to the availability of data. Also, a greater degree of transparency is expected in the market which will also increase market participation,' Mr. Dago said.

Meanwhile, Ndi Okereke-Onyiuke, the Exchange's director general and chief executive officer, said that the information partnership has 'afforded Thomson Reuters robust opportunity to disseminate real-time market data from the NSE to the global investment community.'

'The data for investors and market operators that are being provided include the bid/ask prices, volumes, latest trades and market depth information on equities and indices listed on the Exchange,' Mrs. Okereke-Onyiuke said.

'The development has also enhanced accessibility to the NSE's data, thereby reinforcing market transparency.'

Strategic improvement
She said the NSE had in 1986 signed on Reuters to transmit stock market data through a Electronic Contributor System. The NSE's boss added that the current real-time dissemination of the Exchange's data marks a 'strategic improvement in the information partnership' between the two organisations.

In a vote of thanks to the guests, the spokesperson for the stockbrokers, Babatunde Sobamowo, managing director and chief executive officer of Global Assets Management, said, 'We give thanks to Reuters for dimming it fit to extent their business formation process to Nigeria at no cost. We need to let the world know what is happening in Nigeria; that is why the information partnership is quite timely.'