The coronavirus (COVID-19) pandemic will not have any affect the integrity of the operations at the capital market as operators had proactively adopted enabling technology and processes as well as supervisory frameworks that safeguard the integrity of the market.
Chairman, Association for Securities Dealing Houses of Nigeria (ASHON), Chief Onyenwechukwu Ezeagu said the capital market was not caught unprepared by COVID-19 because stockbroking firms had been subjected to minimum operating standards (MON) by the Nigerian Stock Exchange (NSE) over the years.
According to him, the minimum operating standards are prescribed and enforced by the Exchange to enable dealing member firms to develop strong robust control and governance framework as well as effective human capital that will enable them achieve best-in-class operations.
“The pandemic has not taken away the level the market has attained in terms of technology and ability to reach out to customers. The operators have been prepared for a situation where customers are connected online real time and we have been engaging in virtual trading,” Ezeagu said.
According to him, the minimum standards cover the entire structure of market operations, including corporate governance and human capital.The philosophy is to globalise business and the policy has always been religiously enforced by the Exchange for enhanced healthy competition among dealing members.
He noted that the COVID-19 pandemic period only serves to put operators’ potentials into real test, adding that dealing members are equal to the task which is evident in that trading was never disrupted by the lockdown.
He added that the Chartered Institute of Stockbrokers (CIS) has also embarked on series of training sessions to equip its members with technical know-how for identifying options for survival and business expansions despite the negative impacts of the pandemic on all economic activities.
Appraising the attitude of investors at the commencement of lockdown, Ezeagu described it as mixed saying initially, some investors did not know that the NSE was open for business but when they realised this, it was a great relief and they started to patronise the market.
He however admitted that there were concerns in the entire ecosystem such as the degree by which COVID-19 would affect the economy already badly hit, ability of investors to keep faith, health concerns of workers across the board in the capital market and investors.These issues cannot be ignored.
“It is a healthy man that will invest and so we are concerned about the rate of spread and containment of Coronavirus. We are equally concerned about the sustainability of our business continuity plan deployment,” Ezeagu said.
Ezeagu assured the public that the market has always been resilient, urging operators to support the government in propagating campaign of adherence to safety by the authorities that are handling the pandemic.
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