New Dual Company Licensing Model for Money & Capital Markets Operators
Explore a summary presentation on a dual company licensing model for operators across money and capital markets, aiming to bridge the liquidity divide and create new opportunities for financial intermediaries. Learn about the importance of a new licensing arrangement, the key gap in liabilities funding, and the proposed corporate structure to enhance market participation.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
You are allowed to download the files provided on this website for personal or commercial use, subject to the condition that they are used lawfully. All files are the property of their respective owners.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.
E N D
Presentation Transcript
(PRIVATE & CONFIDENTIAL) A DUAL COMPANY LICENSING MODELFOR OPERATORSACROSS MONEY & CAPITAL MARKETS A SUMMARYPRESENTATION TO THE CAPITAL MARKET COMMITTEE (CMC) BY SONNIE AYERE L M & A (C D I H N )
WHYISANEW LICENSEREQUIREDFORTHEFINANCIAL MARKETS? Why is a new Dual Company Licensing arrangement important ? To cross the very important liquidity divide between the money & capital markets 2
KEY GAP - DEALERSUNDER SEC HAVENOMEANSOFCREATING LIABILITIESTOFUND ASSETS A typical balance sheet of a financial intermediary under SEC purview Assets Liabilities ? Capital Liabilities are required to fund an institution s creation of assets but, institutions under SEC purview have been denied access to the market s deepest liquidity pool Without this very important variable, the securities businesses will remain very small with very little if any, impact on the wider economy. 3
PROPOSED CORPORATE STRUCTURE (A) Regulated by CBN Combination is designated as a Financial Market Dealer by CBN/SEC or a Dealing House by CBN until BOFIA is amended XYZ Money Market Dealers Ltd (B) Regulated by SEC XYZ Capital Market Dealers Ltd (B) is a 99.9% subsidiary of (A) where; (B) can be a series of subsidiary companies (see slide 6) Please Note - The issuance of a combined Capital Market Dealing License as an option to reduce the number of licenses being issued is also being considered by CAMMIC CAMMIC currently engaging with the CBN at the highest levels.. 4
THANKYOUFORLISTENING GODBLESS 5
