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Oteh lists 3 strategies to grow liquidity in Nigeria, other Exchanges

Former chief of the Securities & Exchange Commission (SEC) and current Treasurer, Vice President of the World Bank, Mrs. Aruma Oteh has given three key roadmaps to grow emerging market exchanges.

The World Federation of Exchanges (WFE), which represents more than 200 market infrastructure providers  gathered recently in Cartagena, Colombia for a roundtable to discuss how best to grow liquidity in emerging market exchanges.

Oteh spoke at the session which formed part of the 56th WFE General Assembly & Annual Meeting titled “Enhancing Emerging Market Liquidity” and follows the joint WFE-Oliver Wyman paper on the issue.

Relying on the lead paper at the roundtable, she argued that the process that will drive new markets include promoting the development of a diverse investor base, increasing the pool of securities and associated financial products  and investing in the creation of an enabling market environment.

Earlier, the Chief Executive Officer of WFE, Nandini Sukumar said “It is particularly exciting to be presenting these findings in Colombia, one of the most interesting emerging markets in the world.  This report sets out a practical framework that regulators and exchange operators in emerging markets may be able to use, to grow and enhance market liquidity. Liquidity is the biggest issue for most emerging markets. It is positively associated with broader market development, often resulting in encouraging effects for the underlying economy.”

Daniela Peterhoff, Partner, Global Head of Market Infrastructure, Oliver Wyman, said: “We believe the ideas to emerge from the paper offer actionable solutions to tackle the issue of low levels of liquidity often suffered by many emerging markets.  Ultimately each jurisdiction needs to weight those levers most suitable in its specific ecosystem, and mobilise key stakeholders accordingly.”

 According to a statement issued by WFE, the report was written in collaboration with Oliver Wyman, using its experience in a variety of markets; additional WFE data; and interviews and case studies of some WFE emerging market exchanges.