By PETER EGWUATU

International Commerce Management Limited (ICML), a United Kingdom-based global private equity firm and GTI Capital Group, a Nigerian financial services group, are making plans to explore ways to boost market making and liquidity in the Nigerian capital market.

As a result of the discussions between the two investment and financial services firms, the management of ICML made its maiden visit to Nigeria and together with the top management of GTI held talks with the Nigerian Stock Exchange (NSE), NASD Plc-the over-the-counter (OTC) market, Wema Bank, Mobitel Limited and other stakeholders in the Nigerian capital market.

President, International Commerce Management Limited (ICML), United Kingdom; John Kavvouras, said the Nigerian capital market has enormous potential and holds lot of opportunities that ICML, working with GTI Capital, can bring its global knowledge and capital to help in creating values for all stakeholders. He said one evident area of under-capacity that the management of ICML has noted and would seek to create values thereon is the low level of market making capability in the Nigerian market. According to him, the number one thing that the Nigerian market is crying out for is market making capability because what the international investors need is liquidity. ICML and GTI Capital would work together in this area, combining their vast capital and global and domestic knowledge to make the difference.

Market making is a technical term that generally refers to the system of providing liquidity to securities through provision of bid and offer prices in the trading system of a stock exchange. Generally, market makers ensure a fair and orderly market in their securities of responsibility and assist in the effective functioning of the overall market.

Kavvouras pointed out that enhanced market making capability will boost liquidity of the market and will naturally lead to increased inflow of foreign portfolio investments.

“Pretty terrific; lot and lot of what to do, it’s an Exchange that is developing, emerging, and in line with what we do. There are so many things that the Nigerian market can tap into.