The Association of Securities Dealing Houses of Nigeria (ASHON) is calling for an increase in stockbroking fees, which have remained unchanged for years, as well as the lifting of the suspension on margin trading.
This request was made by ASHON’s Chairman, Sam Onukwue, during the association’s recent annual general meeting.
Onukwue highlighted that the stockbroking fee has been fixed at 1.35 percent for a long time, despite rising inflation. He emphasized that this static fee structure limits stockbrokers’ income and has prompted the association to formally request the Securities and Exchange Commission (SEC) for a review that includes setting both a floor and a ceiling for the fees. Additionally, ASHON is addressing other income-related concerns, particularly regarding the recent misuse of Vending Agreements.
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He also mentioned that margin trading has been suspended due to past abuses, which has restricted liquidity for many firms and hindered their ability to seize new market opportunities. Onukwue pointed out the need to revise existing trading rules, especially concerning the exclusion of banking stocks, in collaboration with the Central Bank of Nigeria (CBN).
In light of the Nigerian Exchange Group’s (NGX) recent capital raise through a rights issue, ASHON has engaged with the board regarding the two percent Claims Reserve Shares as outlined in the demutualization scheme. The exchange has promised a transparent resolution before the rights offering begins.
Onukwue noted that ASHON has strengthened its partnership with the Institute of Capital Market Registrars to enhance communication and resolve operational issues between members and registrars.
He expressed gratitude for the commitment of the governing council, committees, and all members, stressing that despite challenges, ASHON is determined to thrive. He acknowledged the positive relationships within the capital market community and looks forward to a more prosperous future for all stakeholders.
