Trading Update – NGX30 March Futures

March 8, 2024
NGX30 March Futures – 15th March Expiry
We are pleased to provide a brief update on today’s trading activities in the derivatives market.  2 NGX30 March futures were traded today, Friday, March 8, 2024.

Trade Details:
Ticker: NGX30H4
Underlying Asset: NGX30 Index
Expiry Date: 15th March
Contracts Traded: 2
Multiplier: 1000
Initial Margin: 6.2%
Trading Level: 3751
Notional Value: N7 502 000

The trades are the first for the year and they highlight the growing interest in the derivatives market. Investors are beginning to take note of and are taking positions in the derivatives market. The 2 traded futures contracts matched on the NGX trading platform and NG Clearing’s CCP system novated the contracts, making NG Clearing the buyer to the seller and the seller to the buyer. This process of novation guarantees the settlement of the traded contracts.

Participants were required to provide 6.2% of the notional value as collateral, while gaining exposure to the full notional value of the underlying index. This is one advantage of the derivatives market.

We anticipate that this initial trade will catalyze ongoing interest and activity in the derivatives market. Monitoring subsequent developments and staying abreast of market factors will be crucial for informed decision-making.

This update serves to highlight the significance of today’s first trade in NGX30 March futures and its implications for the broader derivatives market. For more detailed insights and tailored analysis, do not hesitate to reach out to our team.

Steps for Investors:
Investors interested in trading derivatives should get in touch with their brokers who are also accredited Trading License Holders (TLHs).

Some registered Trading Licence Holders (TLHs) include:
Apel Asset Limited
APT Securities
CardinalStone Securities
Chapel Hill Denham Securities
Cordros Securities
FSL Securities
Meristem Securities
PAC Securities
RMB Nigeria Stockbrokers
Stanbic Securities