NSE Unveils Derivatives Market Rulebook

August 22, 2019/NSE

The Nigerian Stock Exchange (The Exchange or the NSE) is a Securities Exchange and a Self-Regulatory Organisation (SRO) under the Investments and Securities Act (ISA) and is registered as such by the Securities and Exchange Commission (SEC).

The Exchange provides trading services in its capacity as an SRO and a Securities Exchange subject to the supervision of the SEC and the requirements of the SEC Rules and Regulations made pursuant to the ISA.

This Derivatives Rulebook is made pursuant to the Memorandum and Articles of Association of the NSE and is subject to the provisions of the ISA, and the SEC Rules made thereunder.

The Exchange has made arrangements for Clearing Services for Listed Products to be provided by a Designated Clearing House to act as a Central Counterparty Clearing House (CCP) for The Exchange’s Derivatives Market. The Designated Clearing House is registered by the SEC pursuant to the ISA.

The Exchange shall make and administer Rules, Regulations and Guidelines for regulation of trading in derivatives on NSE Platform and the activities of its Members, and shall exercise all powers, authorities and discretions in that regard.

This Derivatives Rulebook shall be binding upon Members in their relationship with The Exchange, as between themselves as Members, and as relates to the business which they conduct as Members of The Exchange with the general public. This Derivatives Rulebook shall be binding on any Person who utilises the services of a Member for a derivatives transaction or who concludes a derivatives transaction with a Member in the course of the Member’s business or on whose behalf derivatives transactions are carried out.

Every transaction in derivatives entered into by a Member is entered into subject to the provisions of this Derivatives Rulebook and it must be concluded on this specific condition. The interpretation and enforcement of this Derivatives Rulebook vests in the National Council of The Exchange and any Person and/or body to whom it delegates this power.

This Derivatives Rulebook shall be construed and interpreted so as to promote and maintain at all times the integrity of the market managed by The Exchange, as well as to ensure that the business carried out by means of the NSE Platform is conducted in a fair, just and equitable manner and so as to afford proper protection to investors.

Where a matter arises in respect of which no provision or adequate provisions are made in this Derivatives Rulebook, The Exchange shall adopt such reasonable procedure to regulate the matter and the conduct of business on its market in accordance with these principles.

Except where the provisions of this Derivatives Rulebook express to the contrary, they shall be construed in accordance with, and governed by, the laws of the Federal Republic of Nigeria.

The Exchange shall not be liable to any Person in damages for anything done or omitted to be done in the creation or discharge of this Derivatives Rulebook and accordingly no claim or recourse in respect of or in relation to any dealing in derivatives or any matter connected therewith shall lie against The Exchange.

No member of the National Council, member of the Committees of the National Council, director, official, other officer, employee or member of any investigative or disciplinary committees or body of The Exchange/acting for The Exchange is liable for any loss sustained by or damage caused to any Person as a result of anything done or omitted to be done by them or The Exchange in the creation or discharge of this Derivatives Rulebook or in respect of or in relation to or in connection with any dealing in derivatives.

No claim, suit, prosecution or other legal proceedings shall lie against The Exchange or any member of the National Council, member of the Committees of the National Council, director, official, other officer, employee or member of any investigative or disciplinary committees or body of The Exchange/acting for The Exchange in respect of anything which is done or intended to be done or omitted to be done in pursuance of any order or other binding directive issued to The Exchange under any law or delegated legislation for the time being in force.

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