Abuja Stock Exchange
Encyclopedia
Abuja Stock Exchange was set up in 2000 and went live in 2001. It was the first exchange
in Nigeria
to provide electronic trading
, clearing and Settlement for both the primary market
as well as secondary markets. It was set up to trade in equities, unlisted stocks and plain vanilla bonds.
Soon after its launch a government notification forced it to close its operations. This was orchestrated by the more powerful Nigerian Stock Exchange which lobbied with the government to maintain its monopoly over the Nigerian stock markets. The reasoning for the notification was that there was no need for a second stock exchange in the country.
However, efforts are currently on to convert the existing infrastructure in to a multicommodity exchange commodities exchange
.
Stock exchange
A stock exchange is an entity that provides services for stock brokers and traders to trade stocks, bonds, and other securities. Stock exchanges also provide facilities for issue and redemption of securities and other financial instruments, and capital events including the payment of income and...
in Nigeria
Nigeria
Nigeria , officially the Federal Republic of Nigeria, is a federal constitutional republic comprising 36 states and its Federal Capital Territory, Abuja. The country is located in West Africa and shares land borders with the Republic of Benin in the west, Chad and Cameroon in the east, and Niger in...
to provide electronic trading
Electronic trading
Electronic trading, sometimes called etrading, is a method of trading securities , foreign exchange or financial derivatives electronically...
, clearing and Settlement for both the primary market
Primary market
The primary market is that part of the capital markets that deals with the issuance of new securities. Companies, governments or public sector institutions can obtain funding through the sale of a new stock or bond issue. This is typically done through a syndicate of securities dealers. The process...
as well as secondary markets. It was set up to trade in equities, unlisted stocks and plain vanilla bonds.
Soon after its launch a government notification forced it to close its operations. This was orchestrated by the more powerful Nigerian Stock Exchange which lobbied with the government to maintain its monopoly over the Nigerian stock markets. The reasoning for the notification was that there was no need for a second stock exchange in the country.
However, efforts are currently on to convert the existing infrastructure in to a multicommodity exchange commodities exchange
Commodities exchange
A commodities exchange is an exchange where various commodities and derivatives products are traded. Most commodity markets across the world trade in agricultural products and other raw materials and contracts based on them...
.