NEW CAPITAL MARKET OPERATORS LIST OUT.

A new list of approved capital market operators (CMOs) has been released by the Securities and Exchange Commission of Nigeria (SEC) dated January 3, 2016.
According to SEC these were the CMOs that met new minimum capital requirements as verified through substantiated compliance claims. They were verified based on audit queries raised by audit firms.
The list was made up of 429 CMOs; 826 capital market consultants and six regulatory organisations.
The six regulatory organisations include three for securities exchange viz Nigerian stock exchange; NASO PLC and FMOQ OTC PLC; two commodity exchanges and the Central Securities Clearing and Settlement ltd.
The 826 consultants were mostly solicitors with reporting accountants and estate surveyors and valuers following from a distance in that order.
Amongst the consultants, there was only one commodity trader and broker: Taraba Investment and Property ltd and one property manager: UACN Property Development PLC.
Even though almost half of the consultants number, the 429 CMOs were more diverse and difficult to analyse.
However, one thing was obvious, many were sponsored and promoted by about 19 out of the existing banks or by banks of old since merged into other institutions but the CMO arm remained intact with old names.
Still flying flags designed when they were subsidiaries of banks are today's CMO legends like Nigerian Stockbrokers Ltd, Interstate securities; Midas Securities, NISL; MBC Securities; CSL stockbrokers and lots of others.
Amongst the banks with active CMOs as subsidiaries currently are FBN Holdings; Zenith Bank; Union Bank; Main street Bank; Diamond bank; Stanbic IBTC; Sterling bank, GTB and Citi Bank. Many of these have not less than three subsidiaries on the list including self as approved receiving banks or depositories.
Also with active subsidiaries are FCMB; Fidelity bank; Ecobank; Heritage bank; Keystone bank; Standard Chartered , Unity bank, Skye bank and Access bank.
Glancing through the long list, Henates was able to identify two approved as market makers amongst other activities: FBN Capital and Capital Bancorp ltd,the company started by veteran banker, and past president of chartered institute of stockbrokers, Tola Mobolorin.
Of course also on the list are modern day success stories in CMO business that spinned into group activities. They include the Meristem group ; Investment one group, FSDH group, and ARM group all of them with two or more subsidiaries on the list approved for one activity or the other.
Naturally, the list of CMOs is dominated by broker and dealers but also prominent are issuing houses, registrars, fund and portfolio managers, receiving banks and to a lesser extent, underwriters.
According to SEC, 24 CMOs failed to make the list for noncompliance or inability to substantiate claim of compliance while 16 new ones scaled through  made up of 10 newly registered ones and  six with accepted evidence of compliance released after provisional list came out.

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