Banks treasurers under the aegisÂ of have decided to commence retail trading of bonds on the stock exchange.
President of the Financial Market Dealers Association (FMDA), formally Money Market Association of Nigeria, Mr Akinsowon Dawodu, said in Lagos the association has decided to commence retail trading of bonds on the stock exchange. Banks initially focused on the wholesale trading of bonds.
But speaking at the quarterly general meeting of the Association last week, he said the Bond Market Committee of the association at its last meeting explored measures to increase activities and awareness in bonds and decided that banks should commence the retail trading of bonds at the stock exchange while the wholesale trading will continue on the OTC market segment.
In his welcome address at the meeting Managing Director of Equitorial Trust Bank, Mr Ike Oraekwuuotu,Â called on the association to come up with recommendations and strategies that would go a long way in creating a robust bond market that would facilitate infrastructure development. He said that the 24 banks had at their maiden meeting with the CBN Governor Lamido Sanusi, raised the issue of resuscitating the bond market with the banks playing the leading role.
Oraekwuotu said at the event, which was sponsored by Equitorial Trust Bank that FMDA needs to continue to play leadership roles in ensuring stability in the bond market and the development of a virile money market in the country.
The guest speaker at the occasion, the Managing Director of Future View, Mrs Elizabeth Ebi, urged banksÂ to effectively nurture the secondary segment of the bond market to raise the depth of long-term funding in the country.Â The capital market expert said by their nature, banks are handicapped in meeting the funding needs of the economy, as they are basically short term fund providers.Â However, Ebi said banks can accelerate long-term funding of the economy by supporting the growth of the bond market segment.