The Nigerian Stock Exchange (NSE) has explained that the minimum operating standard (MOS) would enhance regulations and build strong operational structure that would help mitigate risk in a sustainable manner.
Speaking at the press briefing on the MOS in Lagos, head, Broker Dealer Regulation, NSE, Olufemi Shobanjo, explained that the policy was developed in the year 2011 by the Capital Market Committee to forestall some of the challenges that led to the 2008 recession in the nation’s capital market.
The exchange, according to him, has taken the position that it is imperative for broker dealers to build strong corporate and operational structures for their operations in order to mitigate risk and strengthen the market.
He explained that the decision was in line with efforts to augment long-term protection for investors and stakeholders in the capital market.
According to Shobanjo, the standards would address the five broad areas of manpower and equipment; organisational structure and governance; effective processes; global competitiveness; and technology.
“It takes the view that healthy and well established firms are in a better position to manage and absorb any shocks that may be experienced in the capital market. This approach is in line with the regulatory tools employed globally to manage risks in the activities of capital market operators,” he said.
Source : Leadership