By NKIRUKA NNOROM

FMDQ OTC Plc is seeking collaboration with the Nigerian Stock Exchange, NSE, to introduce more tradable instruments in the financial market.FMDQ is a Securities and Exchange Commission (SEC)’s licenced window for trading fixed income securities in the Nigerian capital market. It is also a self-regulatory organisation (SRO).

Speaking at the maiden licensing ceremony of FMDQ OTC dealing members in Lagos, where a total of 26 dealing members, comprising of 23 banks and three discount houses, were licensed, the Chairman, Mr. Aigboje Aig-Imoukhuede, said that such collaboration will help to increase the depth of the market.

Aig-Imoukhuede, who doubles as the Chairman, FMDA Board of Trustees, also emphasised the importance of regulation and compliance to extant rules by the dealers, saying that without compliance, there will be no effective market.

He noted that the event was a demonstration of the importance the OTC market attached to regulation, while assuring that FMDQ will continue to champion change in the Nigerian economy by promoting the growth of financial markets within the nation.

“The importance of regulation and transparency in this market cannot be over-emphasised as FMDQ is a market for all stakeholders of the OTC market,” he said.

“Furthermore on regulation, compliance is paramount. Without compliance, we do not have an effective market. It is essential that the dealing members of FMDQ comply with the rules and regulations of FMDQ and those set by our regulators – the SEC, CBN and DMO. Cooperation with FMDQ in shaping good conduct of the participants is of utmost importance and should be seen as our collective responsibility,” he added.

He explained that FMDQ is designed to be the link between investors, issuers and other stakeholders in the financial markets, saying that as a self regulatory organisation, FMDQ has positioned the Nigerian OTC market to become a highly trusted and respected financial hub of activity where expansion is encouraged, businesses are enhanced, performance is driven and stakeholders’ value created.

“To achieve this, FMDQ works closely with the market regulators and agencies from which it derives its authority towards adoption and enforcement of pre-existing rules and regulations of the respective regulatory agencies, formulation of new market rules, regulations and guidelines to strengthen the operations of the markets in consultation with the regulators and issuance of reports on market conditions and activity,” he stated.

The Acting governor of CBN, Sarah Alade, said that the emergence of FMDQ will enhance the liquidity, transparency and safety of transactions in the inter-bank market, adding that it will go a long way in strengthening long-term sustainability of the financial system.

She charged the management to among other things, strive for investors’ protection and education and ensure the observance of rules and regulations by its members, introduce best practices amongst its members