Nigerian Exchange Group Plc · NSENG:NGXGROUP
Nigerian Exchange — The Nigerian Stock Exchange — M&A: Recapitalizing the Stockbroking Industry Workshop (September 2014)
15 slides from Nigerian Exchange's conference presentation, Sep 18, 2014
Slide 1: Presentation to AIHN: Benefits of a Consolidated Stockbroking Industry
Click to edit Master title style PRESENTATION TO AIHN: Benefits of a Consolidated Stockbroking Industry Presented by Oscar Onyema, CEO for M & A: Recapitalizing the Stockbroking Industry Workshop Lagos, Nigeria September 18, 2014 The Nigerian Stock Exchange
Slide 2: Agenda
| Click Agendato edit Master title style 1 • Introduction: Change is Progress 2 • Current Status of the Brokerage Industry 3 • Where We’re Going 4 • How We’ll Get There 5 • Review of Minimum Standards 6 • Road Map to Success 7 • Benefits of Consolidation 8 • Role of Issuing House Community 9 • Concl
Slide 3: Introduction: Change is Progress
| Introduction: Click to edit Master Changetitle is Progress style “The secret of Change is to focus all of “The only thing that is constant your energy, not on fighting the old, but is Change.” on building the new.” – Heraclitus – Socrates “Change will not come if we wait for some other person or s
Slide 4: Current Status of the Brokerage Industry
| Current Click to edit Status Master of thetitle Brokerage style Industry High number of very small members renders the broker business model …which leads to several issues regarding economically non-viable for most players… professionalization of the market # of brokers per $b market # of Estimate
Slide 5: International Benchmarks
| International Click to edit Master Benchmarks title style India Nigeria Thailand Brazil Low market concentration Low High ▪ Fragmented local broker High market concentration A market with long tail of ▪ Professional local brokers inactive fringe players ▪ Participation of global players ▪ Merely l
Slide 6: Where We're Going
| Where Click towe’re edit Master going title style Exchange Issuers Investors ▪ The first choice for access to growth capital for Nigerian companies ▪ The exchange of choice for African Oil, Gas and Power sectors ▪ A diversified investor base ▪ Fully demutualized, for-profit, listed with ▪ A brand
Slide 7: How We'll Get There: The Key Levers
| How Click we’ll to editget Master there:title Thestyle 5 Key Levers • In addition to a Main levers Examples consolidated brokerage industry, it is imperative 1 Advance consolidation and ▪ WSE launched remote membership program to consider other factors professionalization for foreign brokers in 20
Slide 8: How We'll Get There: A Two Pronged Approach
| How Click we’ll to editget Master there:title A Twostyle Pronged Approach • In order to maintain the stability of the Nigerian capital market, the NSE and the Securities and Exchange Commission (SEC) have developed a two pronged approach to strengthen intermediaries. • The two approaches include m
Slide 9: Why Minimum Operating Standards?
| Why Click Minimum to edit Master Operating title style Standards? PURPOSE OF MINIMUM OPERATING STANDARDS FIVE BROAD AREAS OF CONCENTRATION To improve corporate governance. Manpower and equipment; To strengthen and deepen the market. Organizational structure and governance; To build a wor
Slide 10: Road Map to Success
| Road Click to Map edittoMaster Successtitle style Consolidate local Low market concentration High market concentration brokers, attract ▪ Fragmented local broker foreign brokers ▪ Professional local brokers A market with long tail of ▪ Participation of global inactive fringe players Promote altern
Slide 11: Benefits of Consolidation – Case Study
| Benefits Click to edit of Consolidation Master title style – Case Study Key initiatives Impact Poland July 2005, WSE launched its ▪ WSE admitted 7 remote members, within 6 months of launch remote membership program for foreign brokers ▪ Direct access to the WSE system without physical presence in
Slide 12: Benefits of Consolidation – Case Study
| Benefits Click to edit of Consolidation Master title style – Case Study • Sub broker • Implementati • Sub-broker model became the main distribution concept was on of “SEBI channel for tier 2 and tier 3 cities, allowing leading inherent in brokers and brokerage houses to establish pan-India network
Slide 13: Critical Role of Issuing House Community
| Critical Click to Role edit Master of Issuing title House style Community Working Group Support Drive M&A Activity The brokerage community & Issuing houses should strive the NSE have developed 5 to engage the brokerage working groups to support community to promote M&A each MOS theme. The issuing
Slide 14: Conclusion: Why Change?
| Conclusion: Click to edit Why Master Change? title style If you wish to move mountains tomorrow… …you must start by lifting stones today 09/18/2014 The Nigerian Stock Exchange 14
Slide 15: Thank You
Click to edit Master title style THANK YOU Questions & Answers