Originally published October 15 2005
Trade Alert System sponsored by the Nigerian Stock Exchange could threaten national security
by Mike Adams, the Health Ranger, NaturalNews Editor
According to some skeptics, the Trade Alert System scheduled to be put in place could put South Africa's economic livelihood in the hands of external control.
The Chartered Institute of Stockbrokers (CIS) has again raised alarm on the plans by the Nigerian Stock Exchange (NSE) to enforce the compulsory subscription to its sponsored Trade Alert System, describing it as a threat to national security.
Restating the Institute's objections to its compulsory implementation, Akinkuolie said: "The negative marketing gimmick for the product portray stockbrokers generally as rogues and unscrupulous professionals who routinely sell investors' shares without mandate.
Secondly, the indiscriminate use of the machinery of regulatory authorities to propagate and serve the narrow interest of few individuals should not be condoned.
"If SEC and NSE believe that the only way to protect investors is by introducing Trade Alert, CIS has no objection, provided it adds no additional layer of cost to the investing public.
"Currently, the Central Security Clearing System (CSCS) is being paid by investors for rendering custodial services; therefore the functions to be performed by Trade Alert can be performed by CSCS or CSCS paying the service provider.
"SEC, being the apex regulator in the capital market charged with the functions of surveillance and monitoring, receives 1 per cent of the amount involved in all buying transactions.
If it strongly believes that compulsory Trade Alert is the only way to protect investors, then it should pay the service provider from the 1 per cent it receives from the investing public.
Whereas, the average annual return on investments in terms of dividend payment is far less than 12 per cent.
"The percentage of investors is far less than 5 per cent of the population of the country.
The compulsory implementation of Trade Alert has been resisted by shareholders and this clearly indicates that potential shareholders will shy away from investing in the capital market thereby reducing the number of investors."
All content posted on this site is commentary or opinion and is protected under Free Speech. Truth Publishing LLC takes sole responsibility for all content. Truth Publishing sells no hard products and earns no money from the recommendation of products. NaturalNews.com is presented for educational and commentary purposes only and should not be construed as professional advice from any licensed practitioner. Truth Publishing assumes no responsibility for the use or misuse of this material. For the full terms of usage of this material, visit www.NaturalNews.com/terms.shtml