NG Clearing
NG Clearing Limited is Nigeria's first and only licensed Central Counterparty (CCP), providing clearing, settlement, and risk management services for exchange-traded derivatives to institutional clearing members and trading license holders on the Nigerian Exchange and AFEX.
- Company typePrivate
- Founded2016
- HeadquartersLagos, Nigeria
- Headcount11–50
- GTM typeB2B
- OfferingServices
What NG Clearing does
NG Clearing Limited is Nigeria's first and only Central Counterparty (CCP), incorporated in May 2016 and formally launched on December 9, 2021. It provides central clearing, settlement, and risk management services for exchange-traded derivatives in the Nigerian capital market, serving as the interposed counterparty between buyers and sellers through trade novation. The company was registered by the Securities and Exchange Commission (SEC) on June 7, 2021, making it the first CCP in Nigeria and West Africa, and was promoted by the Nigerian Exchange Group (NGX), Central Securities Clearing System (CSCS), Nigeria Sovereign Investment Authority (NSIA), Access Bank, UBA, Union Bank, and several merchant banks.
The company's core technology platform features a state-of-the-art risk management system employing sophisticated Value-at-Risk (VaR) methodology with portfolio-based margining models using risk arrays to simulate portfolio gains/losses under predefined price and volatility scenarios. Initial margin requirements are calibrated at a 99% single-tailed confidence level, with real-time position monitoring throughout trading hours. NG Clearing operates a T+0 daily mark-to-market settlement cycle and maintains a default fund to cover extreme market conditions. Currently cleared products include NGX30 Index Futures and NGXPENSION Index Futures (listed quarterly on NGX), with Single Stock Futures planned and commodity futures under development through a partnership with AFEX.
NG Clearing generates revenue through three primary streams: (1) clearing fees of 0.040% of notional amount on futures contracts, (2) open position management fees of 0.02% of nominal amount per month, and (3) annual membership fees ranging from N7.5M to N10M per segment depending on member tier (GCM, SCM, or PCM), plus one-off application fees of N1M-N1.5M. Its customer base is institutional — comprising General Clearing Members, Self-Clearing Members, Professional Clearing Members, and Trading License Holders — with approximately 10 named brokerages currently registered. The company's stated vision is to become Africa's most trusted CCP.
NG Clearing firmographics
Firmographics- Name
- NG Clearing
- Legal name
- NG Clearing Limited
- Website
- https://ngclearing.com
- Company type
- Private
- Founded year
- 2016
- Operating status
- Operating
- Headcount range
- 11–50 employees
- Short description
- NG Clearing Limited is Nigeria's first and only licensed Central Counterparty (CCP), providing clearing, settlement, and risk management services for exchange-traded derivatives to institutional clearing members and trading license holders on the Nigerian Exchange and AFEX.
- Ownership category
- akta.pro rank
NG Clearing industry classification
Industry- Product category
- Central Counterparty / Derivatives Clearing Services
- NAICS
- Financial Transactions Processing, Reserve, and Clearinghouse Activities (522320), Commodity Contracts Intermediation (523160), Securities and Commodity Exchanges (523210)
- SIC
- Security & Commodity Brokers, Dealers, Exchanges & Services (6200), Security Brokers, Dealers & Flotation Companies (6211)
- akta.pro primary industry
- Clearing & Settlement Operations Services (FSAFALAB)
- akta.pro secondary industries
- Commodity Clearing & Settlement Services (Commodity CCPs & Clearing Members) (FSAFAMAI), Clearing & Settlement for Equities (Prime Broker Clearing Services) (FSACAFAL)
Keywords
Where NG Clearing is headquartered
LocationHeadquarters
- HQ city
- Lagos
- HQ country
- Nigeria
- HQ region
- Africa
Offices1 record
Markets served
NG Clearing business model
Business model- GTM type
- B2B
- Offering type
- Services
- Cost components
- Technology or R&D, Personnel, Operations, Infrastructure, Marketing or Sales
Revenue model
- Clearing Fees: NG Clearing charges clearing fees for the clearing and settlement of all contracts received from an Approved Trading Venue. Fees are invoiced to Clearing Members monthly as part of the End-Of-Month (EOM) report. Debits are effected 5 Business Days after invoice communication. Clearing fee rate is 0.040% of notional amount for Index Future and Single Stock Future contracts.
- Open Position Management Fee: NG Clearing charges 0.02% of nominal amount of open position per month to the Clearing Member. Invoiced as part of EOM report with debits effected 5 Business Days after invoice issuance.
- Membership Fees: Non-refundable application fees (GCM/PCM: N1,500,000; SCM: N1,000,000) plus additional N200,000 per trading member onboarded. Annual membership fees charged per segment (Equity Derivative Segment: GCM/PCM N10,000,000; SCM N7,500,000).
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Subscription | Annual | General Clearing Member (GCM) / Professional Clearing Member (PCM) |
| Subscription | Annual | Self-Clearing Member (SCM) |
| Transaction based/ take rate | Monthly | Clearing Fee - Index Future and Single Stock Future |
| Transaction based/ take rate | Monthly | Open Position Management Fee |
Go-to-market motion1 record
Distribution channels5 records
Marketing channels10 records
NG Clearing product offering
Product offeringCore offering
NG Clearing Limited operates as Nigeria's first Central Counterparty (CCP) and West Africa's premier CCP, providing clearing, settlement, and risk management services for exchange-traded derivatives. The company interposes itself between buyers and sellers of derivatives contracts through novation, guaranteeing trade performance, managing counterparty credit risk, and reducing systemic risk through portfolio-based margining, real-time position monitoring, and a default fund. It clears index futures (NGX30, NGXPENSION) listed on the Nigerian Exchange and commodity futures through its partnership with AFEX Commodities Exchange.
Product overview
NG Clearing operates as a Central Counterparty (CCP) providing a unified platform for clearing and settlement of derivative contracts. The core product portfolio comprises Clearing Services, Risk Management, and Collateral Management, which function as integrated components of the CCP infrastructure. Membership tiers include General Clearing Member (GCM), Self-Clearing Member (SCM), and Professional Clearing Member (PCM). Currently clearing NGX30 Index Futures and NGXPENSION Index Futures, with Single Stock Futures planned for future introduction. A partnership with AFEX Commodities Exchange enables commodity futures clearing (cocoa, paddy rice, maize, soybean).
Differentiator
Problem solved
Functional benefit
Products and services
- Clearing Services Facilitates clearing of derivative contracts through multilateral netting, determining settlement obligations for delivery or receipt positions. Handles trade novation, account updates, and money/securities transfer through a T+0 settlement cycle for Clearing Members.
- Risk Management Comprehensive risk management framework including capital adequacy assessment, margin requirements, position limits, real-time position monitoring, and default resource management to mitigate counterparty credit risk for clearing members.
- Collateral Management Manages collateral posting requirements including initial margin, variation margin, special margins, membership deposits, and default fund contributions to cover participant credit exposures for clearing members.
- General Clearing Member (GCM) Membership Membership tier enabling clearing members to clear transactions on their own behalf and/or in respect of clients, with responsibility for all margin and settlement obligations. Requires minimum deposit of N5 million.
- Self-Clearing Member (SCM) Membership Membership tier permitting clearing members to clear transactions on their own behalf only, responsible for fulfilling all obligations arising from trades executed and cleared. Requires minimum deposit of N3 million.
- Professional Clearing Member (PCM) Membership Membership tier permitting clearing members to clear transactions only in respect of clients, responsible for fulfilling clients' margin and settlement obligations. Requires minimum deposit of N5 million.
- NGX30 Index Futures Index futures contract based on the NGX 30 index with 6% initial margin requirement and 1000 contract multiplier, listed quarterly on the Nigerian Exchange (NGX). Cleared by NG Clearing with a 0.040% clearing fee on notional amount.
- NGXPENSION Index Futures Index futures contract based on the NGXPENSION index with 6% initial margin requirement and 1000 contract multiplier, listed quarterly on the Nigerian Exchange (NGX) and cleared by NG Clearing.
Quantifiable outcome
- Clearing fee rate of 0.040% of notional amount for futures contracts
- +2 more outcomes
Companies that use NG Clearing
Customer profileNamed customers10 records
Segments5 records
Ideal customer profiles4 records
NG Clearing technology and API
TechnologyTechnology focussed Yes
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
Feature4 records
NG Clearing partnerships and signals
Strategic signalPartnerships
Three partnerships are on record, tiered core.
- AFEX Commodities Exchange LtdcoreAFEX, Africa's leading commodity exchange, and NG Clearing signed an agreement to develop infrastructure for trading and central clearing of futures contracts for commodities including cocoa, paddy rice, maize, and soybean in Nigeria. AFEX serves as the trading venue while NG Clearing serves as the CCP guaranteeing settlement of trades. This partnership enables commodity futures trading in Nigeria, previously limited to spot and OTC markets.
- CCP12 - The Global Association of Central CounterpartiescoreNG Clearing accepted as Observer Member of CCP12 at Executive Committee Meeting. Membership provides platform to build relationships with global CCPs and exchange ideas on best practices in the industry.
- NGX Exchange (Nigerian Exchange Limited)coreNGX Exchange serves as the primary Approved Trading Venue for exchange-traded derivatives. NG Clearing clears index futures contracts (NGX30) and pension index futures (NGXPENSION) listed on NGX. Collaboration on market development and standardization of derivatives trading.
Scale indicators5 records
Recent moves8 records
Expansion highlights5 records
NG Clearing competitors and assessment
Company assessmentBroad incumbents
- LCH (LSEG): LCH is a leading global multi-asset CCP owned by London Stock Exchange Group, clearing OTC and listed derivatives. Relevant for its global CCP standards, default-fund design, and as a member of CCP12 alongside NG Clearing.
- CME Group: CME Group operates one of the world's largest derivatives CCPs across interest rates, equity indices, commodities, and FX. Relevant as a benchmark for portfolio-margining methodology and CCP risk frameworks that NG Clearing's risk system is built to align with.
- B3 (Brasil, Bolsa, Balcão): B3 is the Brazilian exchange and CCP operator providing clearing across equities, derivatives, FX, and commodities. Comparable as a vertically integrated exchange-CCP in an emerging market; broader in scale and product breadth than NG Clearing but follows a similar integrated clearing model.
- Eurex Clearing: Eurex Clearing is one of Europe's largest CCPs, clearing listed derivatives across multiple European exchanges. Comparable as a multi-asset CCP with sophisticated risk management and a CCP12 peer to NG Clearing.
- ASX Clear: ASX Clear is the CCP for the Australian Securities Exchange, clearing equities, derivatives, and commodities. Comparable as a vertically integrated exchange-CCP with established risk management frameworks in a single developed market — analogous in role to NG Clearing within Nigeria.
Regional players
- Bursa Malaysia (Bursa Malaysia Derivatives Clearing): Bursa Malaysia operates a CCP for its equity, derivatives, and commodity markets. Comparable as a regional Asian exchange-CCP operating in an emerging-market jurisdiction, providing a benchmark for how single-country CCPs in developing markets structure products, membership tiers, and fee schedules.
Direct peers
- JSE Clear: JSE Clear is South Africa's licensed CCP for equity and derivatives markets, operated by the Johannesburg Stock Exchange. It is the closest analog to NG Clearing as an emerging-market African CCP providing clearing, margining, and settlement for exchange-traded derivatives with a similar regulatory and infrastructure profile.
- NSE Clearing (National Securities Clearing Corporation of India): NSCCL clears equity and derivatives trades on the NSE in India. Highly comparable to NG Clearing as a single-country emerging-market CCP that scaled rapidly alongside its host exchange's derivatives franchise and operates portfolio-margining and real-time risk systems.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat6 records
Key risks6 records
Key highlights6 records
Customer concentration
NG Clearing social profiles
Digital presenceNG Clearing financial estimates
Financial estimateRevenue estimate
Valuation estimate
NG Clearing leadership team
Management profileNumber of profiles
Profiles4 records
NG Clearing funding detail
Funding detailFunding overview
Funding rounds1 record
Investors1 record
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
NG Clearing M&A and investment
M&A and investmentM&A
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about NG Clearing
What does NG Clearing do?
NG Clearing Limited operates as Nigeria's first Central Counterparty (CCP) and West Africa's premier CCP, providing clearing, settlement, and risk management services for exchange-traded derivatives. The company interposes itself between buyers and sellers of derivatives contracts through novation, guaranteeing trade performance, managing counterparty credit risk, and reducing systemic risk through portfolio-based margining, real-time position monitoring, and a default fund. It clears index futures (NGX30, NGXPENSION) listed on the Nigerian Exchange and commodity futures through its partnership with AFEX Commodities Exchange.
Is NG Clearing a public or private company?
NG Clearing is a private company. It is classified as corporate owned and is currently operating.
When was NG Clearing founded?
NG Clearing was founded in 2016. It employs 11 to 50 people.
Where is NG Clearing based?
NG Clearing is headquartered in Lagos, Nigeria, in the Africa region.
How does NG Clearing make money?
Three revenue lines are on record. Clearing Fees are the primary driver. The others are open Position Management Fee and membership Fees.
Who are NG Clearing's main competitors?
Broad incumbents on record are LCH (LSEG), CME Group, B3 (Brasil, Bolsa, Balcão), Eurex Clearing and ASX Clear. Bursa Malaysia (Bursa Malaysia Derivatives Clearing) is listed as a regional player. Direct peers are JSE Clear and NSE Clearing (National Securities Clearing Corporation of India).
Does NG Clearing have an API?
No public API is recorded for NG Clearing.
What industry is NG Clearing in?
NG Clearing's product category is Central Counterparty / Derivatives Clearing Services. Its primary akta.pro industry code is FSAFALAB, Clearing & Settlement Operations Services, with a secondary code of FSAFAMAI, Commodity Clearing & Settlement Services (Commodity CCPs & Clearing Members). Its NAICS code is 522320 and its SIC code is 6200.