An Introduction to Retail Bond Market - The Nigerian Stock Exchange

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HOW DO I PARTICIPATE• The TWO simple steps:i. Appoint a house as your Fixed Income Broker/Dealer.ii. A CSCS account is opened for you (the CSCS is the central depository for all securities inNigeria) if you do not have one.• Discuss and get appropriate advice on the Bonds to invest in.• Once the investment is agreed, a trade can then take place which is a very simple process. Itworks as follows:-i.Transfer the funds required to buy the Bond to your broker or the custodianii. Once the payment is confirmed in the custody account, the client’s CSCS account will becredited with the Bonds purchased.• When selling the Bonds, the same process will be followed i.e. the investor notifies the traderof the intention to sell, the trader sells and the total amount from the sale is credited to theinvestor's cash account.• If the investor does not want to sell his Bond, he/she will collect interest payment two times ayear from the issuer. Interest paid will be determined by the Interest rate on the Bond.12
HOW DO I PARTICIPATEInvestorappoints aFixed Incomebroker/dealerWhere required –Dealer opens cash& securities a/cwith custodianInvestorsinterest inbonds, termsare agreed anddeal is sealedBroker buys agreedsecurities intoinvestor’s a/c; andinvestor is debitedfor naira value,Investorreceives a/cstatement orconfirmationfrom brokeron executedtransactions13
Page 1 and 2: January 29, 2013The Role of NSE FIM
Page 3 and 4: THE NIGERIAN BOND MARKET: AN OVERVI
Page 5: THE NIGERIAN BOND MARKET: MAJOR EVE
Page 8 and 9: Sub-Nationals (State Bonds)IssuerIs
Page 10 and 11: The Nigerian Bond Market: Volatilit
Page 14 and 15: BENEFITS OF TRADING ON THE EXCHANGE

An Introduction to Retail Bond Market - The Nigerian Stock Exchange

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