The Nigerian Stock Exchange (NSE) is set to enhance efficiency in real time delivery of stock transactions to investors after rolling out a mobile an email alert notification system.
“Each time investors buy or sell a security, an alert is sent to them via a Text Message to the recipient’s mobile phone or via an e-mail to the recipient’s mailbox,” explained Mr Ade Bajomo, Executive Director of Market Operations and Technology at the NSE.
Dubbed X-alert, the system will boost transparency in transacting activities as well as check unsecured trading loopholes, reducing the risk of fraudulent dealings.
“So what that does is to bring real time notification plus transparency to the market at market rates while safeguarding against unauthorised sale or purchase of securities,” added Bajomo.
Aside a safer environment, the new innovation will further slash transaction cost for investors. Previously buyers and sellers alike were required to pay a 0.06 percent on any transaction carried out for alerts, costing investors N1.25 billion ($7.6 million) annually.
X-alert will rather charge a flat fee of N4 ($0.002) per transaction, meaning annual cost is reduced to about N5.5 million ($33,600). This saves approximately N1.24 billion ($7.5 million) for investors.
Nigeria experiencing one of the highest mobile penetrations in the world, with over 155 million people out of 170 million populations using a mobile phone, as well as a surging smartphone market of over 25 percent of mobile users. These would fast track the delivery of NSE’s mobile system and ensure it is inclusive of every stratum.