NSE, CSCS Introduce Trade Alert System
By Uche Obike and Tunyosola Ayansiji
The Nigerian Stock Exchange (NSE), Central Securities Clearing System Limited (CSCS) in conjunction with Adonai Net yesterday in Lagos announced the introduction of a new securities alert system to protect investments in the nation's stock market.
The Director General of the Exchange, Dr. Ndi Okereke-Onyiuke, explained to newsmen that the Trade Alert System was an investor's protection scheme. She said while the whole idea of the system was to put all relevant information concerning the investment of shareholders in the palms of their hands due to the fact that some stockbrokers were allegedly selling shares of their clients without mandate.
She added that "being a maiden scheme in the whole world, it is also set to address the perennial issues associated with authorised transactions and the timing of the initiative is instructive given the challenges imposed by the dictates of global commerce, especially as they relate to transparency, corporate governance and organised compliance."
She disclosed that the idea of the new trading alert system was brought by the Chairman of Adonai Net, Mr. Gboyega Olulade when the NSE complained against the act of selling shares by a few brokers without the owner's consent.
In response, she explained further that "Olulade went and spent several amount of money to build a platform for the Trade Alert System."
"It was because I complained about the attitude of a few my stockbrokers to Olulade that made him contact his American friend who brought about this Trading Alert System. He spent a lot of money to build the platform in South Africa. The NSE and CSCS did not spend any money because Olulade used his own money to establish the project. And, with the introduction of this project, we will have no more problems in the market," she said.
She recalled that "the platform of the Trade Alert System was established in South Africa due to infrastructure problems such power (electricity) failure in Nigeria. So it was built there due to its 24 hours of electricity and the Trading Alert System needed constant power in order to function very well."
Okereke-Onyiuke said that "a software had been installed to the rear end of the mainframe of the computer system of the CSCS such that whenever there is a transaction on the account of subscribers at the CSCS, an SMS message is triggered into the Global Mobile Services (GSM) handset of the investor, detailing sales or purchase and specifying volume and price. In the event that the investor did not authorise the transaction, he can summarily abort the process by placing a call to some dedicated lines."
In his comments, the Chairman of Adonai Net, Mr. Gboyega Olulade explained that "the new system does not work only in Nigeria, because covers the whole world. If you are anywhere, let us have your phone number whether you are using an MTN or Global Communication (GlobaCom), we will trigger your account to you. The investor has only 48 hours to report back to the CSCS after his account might have been triggered to you," he said.
While reacting to the fact that allegations were leveled against a few stockbrokers for selling their client's shares without their notice, Okereke-Onyiuke said it was unheard of for a stockbroker to sell shares of his client without the authority to do so and severe punishment awaited any stockbroker either caught in the act or in an attempt to do so.
On the potency of the Trade Alert System, she explained that "within 45 minutes, 3 million investors can get their messages at a time without any hitch because Adonai Net has built their platform in a place where there is constant electricity and with the use of their own network, the messages get to the investors."
"When a stockbroker knows that an investor has the ability to both monitor his shares and detect whether his shares has been tampered with, the stockbroker will stop selling unauthorised shares," she said.
To subscribe, the investor needed only N1,500 that will be paid every month in order to renew the system.
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