NG Clearing Launches First Central Counterparty Services in West Africa

Posted on 12/14/2021

Lagos-based NG Clearing Limited launched on December 10, 2021. Nigeria Sovereign Investment Authority (NSIA) is an anchor investor in NG Clearing. NG Clearing is the the first central counterparty in West Africa and has formally launched operations. Nigeria’s top capital market regulator, the Securities and Exchange Commission, granted NG Clearing registration to perform the function of a central counterparty with effect from June 7, 2021. NG Clearing seeks to facilitate the clearing and settlement of exchange-traded derivatives, management of counterparty risk, reduction of systemic risk, and promotion of the safety and integrity of Nigeria’s capital markets.

Commenting on the launch of the counterparty, NG Clearing Chief Executive Officer Tapas Das said on December 9, 2021, “The CCP is basically a financial market infrastructure that interposes between the buyer and the seller and makes sure to guarantee the settlement which was the root cause of the 2008 crisis. The goal is to reduce systemic risk, promote market integrity and protect the financial market from experiencing some of the events that led to the crisis in 2008.”

Having a CCP, or central counterparty, gives the Nigerian capital markets key infrastructure.

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