Former USCFTC Chairman Criticize Profiteering By Banks


The former Chairman of the US Commodities Futures Trading Commission ( CFTC), Mr. James Stone, has criticized the lopsided nature of world economy in which the financial sector controls huge part of the profits in the system to the detriment of the solid sector.He posited that for the banking sector which should be the catalyst  can not be making real profit without commensurate  value to the economy.

Speaking at a lecture entitled‘Pluses and Pitfalls of Derivatives Trading’organised by the Nigerian  Stock Exchange(NSE) and Coronation Merchant Bank Ltd ,Mr Stone advised Nigeria to initiate the derivative market in the  country gradually in order to avoid unnecessary   financial mishaps.

The event was graced by NSE Chief Executive Officer Oscar Onyema,former NSE President ,Aigboje Aig-Imoukhuede , Coronation Merchant Bank LtdManaging Director, Abubakar Jimoh ,among other top players of the nation’s financial sector

According to him for a nation to become rich requires for the real sector to be supported by banks adequately,saying that unless the real sector of the economy performs strongly no nation can transform itself. That a country can not be said to be prosperious unless its real sector is rich.

Oscar Onyema, CEO of NSE  stated that the lecture as an  initiative of NSE’s international stakeholders’ engagement strategy that commenced four years ago to prepare ground for the exchange’s plans to introduce derivatives on the Nigerian bounce .He posited that the Nigerian Exchange is committed to building capacity and enhancing the expertise of operators and other associated parties towards collective efficiency. ”

Former NSE President ,Aigboje Aig-Imoukhuede in his contribution said that his decision to bring the lecturer to Nigeria was based on the fact Nigeria has a lot to learn from him,saying that it will help us to prepare effectively for the derivative market.

Mr Stone however advised Nigerian traders who are not accustomed to derivatives to trade only on exchange derivative instruments and trade in small amounts before graduating to bigger funds and over -the- counter derivative trading.He pointed out that you should not engage on over the counter trading unless you are a suffisticated trader.

According to Coronation Bank  Managing Director, Abubakar Jimoh, “we are excited about our collaboration with the NSE on this noteworthy initiative, which will have positive effects on capital market operations in Nigeria.
“As a wholesale, financial institution focused on transforming the face of merchant banking in Africa, Coronation Merchant Bank is not only open to innovative collaborations that will bring development to the African financial landscape, but will serve as a catalyst for revitalising capital market operations across the continent..