The Association of Securities Dealing Houses of Nigeria (ASHON) is advocating for an increase in stockbroking fees and the reinstatement of margin trading. ASHON Chairman Sam Onukwue highlighted these demands during the association’s annual general meeting.
Onukwue noted that the current stockbroking fee of 1.35% has remained unchanged for many years, despite rising inflation. He emphasized the need for a review of the fees to ensure adequate compensation for stockbroking firms.
Additionally, Onukwue called for the reintroduction of margin trading, which was previously suspended due to abuse. He argued that the suspension has limited liquidity for stockbroking firms, hindering their ability to capitalize on emerging market opportunities.
ASHON has been actively working with capital market regulators to address these issues. The association has submitted a formal request to the Securities and Exchange Commission (SEC) for an upward review of stockbroking fees. It has also made representations to the regulatory authorities regarding the reinstatement of margin trading.
Onukwue further highlighted ASHON’s efforts to strengthen its relationship with the Institute of Capital Market Registrars. This collaboration has facilitated the resolution of operational issues between stockbroking firms and registrars.
ASHON remains committed to its mission of promoting the growth and development of the Nigerian capital market. The association is optimistic about the future and looks forward to continued collaboration with all stakeholders.
