The Nigerian Stock Exchange (NSE) has become the first Capital Market Operator in Africa to launch The NSE Market Quality Report (X-Qual).
The Chief Executive Officer of The Nigerian Stock Exchange, Mr Oscar Onyema, said at the yearly conference that the NSE Market Quality Report was designed to disclose the extent to which equities traded at the Exchange provide executions at prices better than the prevailing price quotes before an investor places an order.
The information is expected to enable analytical investors or broker-dealers gain a better understanding of how best to execute orders in the market and the quality of execution they can expect for the different stocks being traded.
Onyema added that the report included information about the Exchange’s quality of executions on a stock- by-stock basis, including how orders of various sizes were executed relative to the available price quotes.
He explained that Nigeria had no rules governing the disclosure of order execution and routing practices but in developed markets, there are rules that require and govern such disclosures.
On how to be listed on the Stock Exchange, he said, liquidity and transparency were the two most important criteria for a company looking to list on an exchange while disclosure is paramount to transparency and for attracting participation in any market.