By Nkiruka Nnorom
FMDQ OTC Plc has recorded N93.9 trillion market turnover for the eight month period ended August 31, 2015.The figure represents turnover on all products traded on the FMDQ secondary market as well as trade executed between Dealing Members, Dealing Members & Clients, and Dealing Members & the Central Bank of Nigeria (CBN).
Figures from the Exchange showed that top ten dealing members accounted for N67 trillion, representing 71 per cent of the overall turnover in the market, while the top three accounted for N27.9 trillion or 42 per cent of the subsection of the market.
Transaction on Treasury Bills accounted for most of the trade, accounting for N31.739 trillion of the total trade; repurchase agreement/buy backs followed with N21.354 trillion turnover; Foreign Exchange (forex) netted N19.84 trillion; unsecured placements/takings accounted for N9.212 trillion; FGN Bonds was the next with N6.062 trillion, while FX Derivatives accounted for n5.54 trillion of the total transactions for the period.
Others were money market derivatives that accounted for N101 billion of the total trade; Eurobonds N33 billion, while other bonds accounted for the remaining N18 billion of the total trade. According to FMDQ, the figures excluded primary market auctions in T-Bills, Bonds and FX.
A review of activities undertook by the securities exchange showed that it listed two bonds during the eight month period. Wema Bank Plc’s N8.15 billion Series 1 Commercial Paper (CP) Notes under a N20 billion Commercial Paper Issuance Programme was admitted, as well as Nigeria Mortgage Refinance Company Plc (NMRC) N8 billion Series 1, 15-year 14.9 per cent Fixed Rate Bond under a N140 billion Medium-Term Note Programme.
As part of a continued progress towards delivering on one of its mandates to develop the Nigerian financial markets through capacity building, the securities exchange introduced New Membership Category, Affiliate Members, during the period. The introduction of the new membership category, FMDQ said in its News letter, would increase market confidence and efficiency.
Affiliate membership is ideal for institutions and individuals with a keen interest in the FMDQ OTC markets, and an association with the financial markets, but not in a full participatory role as either a dealing, associate or registration member of FMDQ, taking advantage of the Exchange’s commitment to develop the Nigerian financial markets via capacity building through knowledge and information dissemination.
Affiliate Members can avail on FMDQ’s core value proposition of consistently adding value to a vast range of stakeholders and consequently be provided with benefits including, but not limited to financial market knowledge acquisition, trades/investments monitoring ability, tools to enable informed investment decisions and efficient price discovery, as well as access to a repository of fixed income and currency market information.