The Nigerian Exchange Limited (NGX) will begin implementing a new pricing methodology for equities trading from August 17, 2026, following an approval by the Securities and Exchange Commission (SEC).

The template is aimed at improving price discovery and strengthening market integrity.

Under the revised framework, only trades that meet specified minimum volume thresholds will be used in determining published share price movements.

The exchange said the new methodology is designed to ensure that transactions of significant economic value have a greater influence on market prices while reducing the risk of price distortions caused by low-volume trades.

The revised framework introduces tiered minimum traded quantity thresholds based on the prevailing price of a stock.

Equities trading at N1,000 and above will require a minimum of 10,000 units before a published price movement could be recorded.

Stocks priced between N500 and N999.99 will require a minimum trade of 50,000 units, while equities trading below N500 must record at least 100,000 units to allow price change.

The exchange, however, clarified that the existing daily price movement limits for listed equities remain unchanged.

The Association of Stockbroking Houses of Nigeria (ASHON) said the revised pricing methodology would take effect on August 17.

Hence, ASHON urged trading licence holders and other market operators to study the new requirements and make the necessary operational adjustments ahead of the implementation date.

The association added that the new framework would support a more transparent and efficient price discovery process while enhancing confidence in the Nigerian capital market. (The Guardian)

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