Trading in securities listed on The Exchange are conducted through Dealing Members of The Nigerian Stock Exchange. To be eligible for membership on the NSE, Broker-dealers must meet specific requirements set by The Nigerian Stock Exchange. These requirements are stated in the
Rules for Registration as a Dealing Member of The Nigerian Stock Exchange.
Upon approval of a Dealing Member's application, the firm is required to satisfy other requirements detailed in the Post-License Requirements document. After these requirements are satisfied, the Dealing Member's registered stockbrokers are issued a 'unique identification code' by The NSE which enables them trade on behalf of the firm.
As a provision of membership, each Dealing Member is charged annually and the fee covers (a) maintenance of trading terminals (b) rented "space" on the trading floor, (c) Dealing Member fees and (d) authorized clerkship for each stockbroker it employs.
Authorized Clerks (Stockbrokers)
Dealing Members rely on authorized clerks to service their clients (investors). These brokers act on behalf of Dealing Member to access the market and assist the investors in buying, selling or dealing in securities. The brokers can only execute trades on The NSE using the unique identification code assigned to them.
To be eligible for admission as an Authorized Clerk, the individual must: