Market activity in the Nigerian Stock Exchange is monitored and recorded in an intranet facility, CAPNET
The Nigerian Stock Exchange, one of the largest stock exchanges in Sub-Saharan Africa, has undergone a variety of changes in recent years to streamline operations and better integrate new information technology. With restrictions on foreign ownership and participation in the stock market lifted in 1995, many of the changes have allowed the exchange to process higher trading volumes and foreign transactions efficiently. The changes in information technology in the Nigerian Stock Exchange include an automated trading system, Internet infrastructure and digital record management for clearing and delivery.
CAPNET Internet Infrastructure
In order to make reports and results more accessible to stockholders, in 1996 the Nigerian Stock Exchange launched its Internet system, CAPNET. The system reports the latest market activity in a public website and also has log-in areas for members of the exchange, such as traded companies, stockbrokers and authorized issuing houses, to access information and communicate with local traders via email. The Nigerian Stock Exchange also provides information to investors and the public through the Reuters Electronic Contributor System, also featuring up-to-date news on the latest market movements and developments.
Digital Clearing, Delivery and Settlement
As of 1992, the Nigerian Stock Exchange manages all clearing, delivery and settlement through a subsidiary organization, the Central Securities Clearing System Limited (CSCS). In addition to creating a digital record database available online to all investors, CSCS processes and documents all stock purchases, sales and settlements, making the exchange more efficient, accessible to both local and international investors and secure with data and document protection.
Automated Trading System
As of 1999, the Nigerian Stock Exchange's investors and operators conduct trading through an automated trading system that replaced the traditional "call-out" system on the market floor. Real-time trading through a secure network has allowed the stock exchange to open branches in several cities in Nigeria for remote trading and allowed for more effective surveillance of market operations.
