CEO's Speech - Nigerian Stock Exchange Market Data Workshop
Good morning distinguished ladies and gentlemen:
Welcome to the Fourth edition of The Nigerian Stock Exchange (NSE) Market Data Workshop.
I would like to open the floor with a quote from an author - Robert Kiyosaki:
“Finding good partners is the key to success in anything: in business, in marriage and, especially, in investing.”
With this quote, I want to express my gratitude to our strategic partner for this year’s event – InfoWARE Limited and other sponsors: Hewlett and Packard (HP), C & I Leasing, Zenith Bank as well as our media partners for their kind contributions to this event.
We have carefully selected a panel of thought leaders in the field of Market Data; to lead the conversations at this all-important event today. I thank our speakers for their support and valuable perspectives and all our distinguished guests for making time to be here.
ACCOMPLISHMENTS IN THE PAST 3 EDITIONS
Over the past three editions of this workshop, we have seen a heightened propensity for market information across a variety of users especially the investors. This is partly as a result of a growing awareness of the role of market data in investment decision-making. There is a growing interest in market information as it positions itself as a fundamental part of the larger value chain in Disruptive technologies for managing risk and creating new strategies.
ABOUT THE 4TH EDITION
This year’s edition themed ‘’Partnerships, Products and the Customer’’ shines the spotlight on the need for a more inclusive collaboration among Capital market players. To analyse the information in market data and to inform the debate on the challenges of extracting this information from raw data to deliver a data product that is easily consumed to make an informed investment decisions.
THE GROWTH POTENTIAL OF MARKET DATA USAGE
There has been a global increase in the general consumption and spending on Financial Market Data and Market data analytics, stretching beyond the market data typically provided by stock exchanges for equity trading. Market commentators have estimated the value of total spending on all financial market data, analysis and news at about USD 28.5 billion; while the potential market size of financial information is valued at USD 50 billion, according to McKinsey estimates.,
Despite the evolving needs of consumers demanding for financial information globally, Nigeria still has low inclination towards investments, according to a research by FSDH, which reported the savings ratio in Nigeria as one of the lowest among selected countries including China, India, Kenya, Malaysia, South Africa, United Kingdom, and USA. The ratio of mutual fund assets to Nigeria’s GDP is also very low at less than 1%, despite the growth of mutual funds in the country in recent times.
One major reason for this low retail investment appetite is the inadequate knowledge of investment products and the benefits for retail investors. This underscores the importance of creating product offerings that promote diversity in investment, manage risk and make the information readily available to consumers. Exchanges and Data vendors are already responding to this increasing demand using new tools for market data products.
At the Nigerian Stock Exchange we believe in customer centricity and we continue to foster partnerships with local stakeholders across the market, incorporating new technologies and expertise to drive market data by-products like derivatives and other structured products such as the Exchange Traded Funds.
These structured products which are based on the accuracy of the underlying stock prices are being used by a broader set of professional users than those who participate on the stock exchange directly – to advise, monitor and/or validate transactions after they are executed.
Today’s Market Data Workshop underpins the need for the analysis of data to make it available in a format that is as disaggregated as possible in order to be easily consumed for investment purposes.
The Nigerian Stock Exchange is in a privileged position to benefit from its broad relationships with market participants to drive the delivery of our strategy. Our focus on innovative and disruptive solutions is built around our market data. We are innovating with “smart channels” that can deliver on-demand data to investors - including USSD, Mobile Apps, SMS and IVR.
In the same vein, we are ramping up awareness and strategic response to the challenges and opportunities of the 4th Industrial Revolution across the Capital Market ecosystem. This is to ensure that our market remains relevant and competitive in this era of “tectonic” disruption.
As an organization known for best practices, we are also adding new practices to our culture. We are taking on bold new initiatives to change the Capital Market narrative in partnership with our peers within the wider financial industry, we can say with all certainty – the future is bright!
In conclusion, I would like to thank the extraordinary team at the NSE who worked very hard to put this workshop together – thank you very much for your efforts in making this a successful event.
I trust that today’s proceedings will provide the much-needed insight on the role of Market Data in decision-making processes. I, therefore, urge us to participate actively and look forward to fruitful discussions.
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