Contrasting Stories

This morning I was thinking about what the future of the US securities market was going to look like.  I assume it will move to further automation.  But how will regulation attempt to keep up with it?  Then I saw this story

ThisDayLive:  Ajomale: It is Absolutely Necessary for Nigeria to Have an OTC Market

My first thought was "Oh no.  Should I expect to soon start receiving a flurry of emails from wealthy West African broker dealers offering to share with me their family's vast wealth of credit default swaps if only I will agree to novate those positions to my clearing account?"

On a more serious note - the story is an interview with the the CEO of the Nigerian Association of Securities Dealers (also known as NASD) about how Nigerian securities brokers are trying to set up an OTC market.  From that story

"Most of the time people see a market as only a trading platform, but behind the trading platform are rules, in front of the rules are operators, behind all the transactions there must be a bank and for a transaction to run smoothly there must be a clearing house. So all these peripherals we have put them in place in addition to getting a platform."

So they are forced to think about all of the same issues that we face in the US and will continue to face as our securities market increases in its complexity.  However contrast that story with this one in the same newspaper

ThisDayLive:  Shekau Denies Boko Haram Ceasefire

This second story is about Boko Haram the militant Islamist movement that operates in the Northern Nigerian state of Yobe.  The name Boko Haram means "Western education is sinful" or "Western education is forbidden".  The group's primary activity seems to be blowing up schools and Christian churches.  They could be considered to be the Taliban's West African cousin.  Last week they massacred 29 school children.  In a world filled with vile militant groups this is truly one of the most vile.  In case you were wondering Nigeria has a population of approximately 170 MM people and a 61% literacy rate.  Meaning they have approximately 66 MM illiterate persons.

But soon they may have an OTC securities market.  I can't wait to start receiving those emails.