NG Clearing Limited (“NG Clearing” the “Company”) was incorporated at the Corporate Affairs Commission (“CAC”) on 24th May 2016 as NGX Clearing Limited and changed its name to NG Clearing Limited on October 4, 2016. The Company is registered at the CAC as a company limited by shares and received an approval in principle from the Securities and Exchange Commission to operate as a Central Counterparty Clearing House (“CCP”) to serve as a market-wide financial market infrastructure in Nigeria.
The Company was established by its Promoters, The Nigerian Exchange Group Plc (formerly the Nigerian Stock Exchange) and Central Securities Clearing System Plc and has other shareholders including Access Bank Plc, Nigeria Sovereign Investment Authority, Consonance Kuramo Special Opportunities Fund I, Coronation Merchant Bank Limited, Greenwich Trust Limited, Union Bank Plc, United Bank for Africa Plc, Association of Stockbroking Houses of Nigeria and Wharf Street Investment Limited.
The establishment of NG Clearing is in line with its strategy to support the acceleration of the growth and development of the Nigerian capital market as the “gateway to African Markets”. It is expected that the establishment of a CCP will position the Nigerian capital market as a leader amongst its peers in the emerging markets by facilitating greater market transparency, increasing trading volumes and overall improvement of the efficiency and competitiveness of the Nigerian capital market.
Thus, part of the rationale for the establishment of NG Clearing is to deepen the Nigeria capital market through the introduction of a standardized clearing platform for derivatives and other financial instruments. It is expected that the establishment of NG Clearing will, in the long run, reduce systemic risk in the Nigerian financial system through its loss mitigation mechanism. The establishment of the Company will also facilitate the availability of alternative investment options for knowledgeable local and foreign investors seeking a diversified portfolio within the Nigerian capital market while positioning NG Clearing as a key clearing infrastructure in Africa.
In line with the foregoing, NG Clearing seeks to provide CCP services in the Nigerian capital market. Thus, the Company is being positioned to interpose itself in financial transactions by becoming the buyer to the seller and the seller to the buyer, thereby, guaranteeing the successful execution of derivatives and other trades from various trade points and managing all the risks associated with derivatives and CCP transactions in Nigeria.
Our vision is to be the Most Trusted CCP in Africa
We ensure safe and resilient financial markets for growth
We believe that how we do business is as important as what we do. We want to achieve good results in a way that treats our customers fairly and helps to strengthen communities and ensure a properly functioning financial system. Our values are central to achieving these aims.