NGX Delays Rollout of its Updated Pricing Framework
The Nigerian Exchange (NGX) has postponed the implementation of a new pricing framework designed to change how trade volumes trigger share price movements. The delay is intended to allow for further consultation with market stakeholders.
Why it matters
Adjustments to exchange pricing rules impact market liquidity and price discovery for major equities, affecting investor confidence in the Nigerian financial market.
Under the postponed framework, transactions in stocks priced at 1,000 naira and above would require a minimum volume of 10,000 units to move the market price
The Nigerian Exchange (NGX) has delayed the rollout of its updated pricing framework for equities trading, hours before it was set to take effect on Monday, an exchange official said.
The revised rules, approved by the Securities and Exchange Commission (SEC), were designed to introduce tiered trade-volume thresholds to trigger movements in published share prices, replacing flat minimum bands.
Under the postponed framework, transactions in stocks priced at 1,000 naira ($0.63) and above would require a minimum volume of 10,000 units to move the market price, while equities valued between 500 naira and 999.99 naira would require 50,000 units. Shares priced below 500 naira would need a minimum of 100,000 units traded.
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