::::: The Nigerian Stock Exchange :::::

Investor

Investors statements of stock position are issued monthly through the stockbroking firms or on direct demand for N100.00
Use of stocks in CSCS System as collateral for loan facility after T + 3 settlement cycle i.e. 4 working days. In effect, a statement of stock position is obtainable from CSCS 4 days after transaction.
Investors can speculate more and take advantage of capital appreciation in their investment because of the T+3 settlement cycle.
T+0 settlement cycle - Delivery versus Payment (DVP) i.e. cash and carry type of market is around the corner.
Reduced risk of loss of certificates.
Stock transactions are transparent and can be easily traced.
Ease of reconciliation of stockholdings.

Quoted Companies

Huge cost associated with the production of share certificates for transaction through the secondary market has been significantly reduced.
Before CSCS, a single transaction on a certificate led to the cancellation of the certificate and the issuance of as many as ten (10) certificates depending on allotments made. This is no longer so since few shareholders request for certificates.
Indeed, of the 900,000 shareholders who use CSCS system now, only about 8,500 (representing 0.0098%) shareholders have requested for certificates to date.
Amalgamation of several accounts for a shareholder on the register leading to reduction of cost to the company.
Dynamism in the security market

Stockbroking Firms

Prompt Inter-member money and stock-settlement are assured.
The problems associated with delivery of shares are minimised
Increased efficiency and profit
Reduction in operational cost.

Challenges

We will seek to maintain the credibility already established in transparency and timeliness in transactions in the stock market and achieve Delivery Versus Payment (DVP) settlement system. In addition, stock market with immobilized securities in line with other developed and emerging capital market is the ultimate. For a more transparent and better relationship between investors and the operators in the market, continuous enlightenment of the investing public is imperative.