By Nkiruka Nnorom

FMDQ OTC Securities Exchange Plc has outlined key initiatives that it intends to concentrate on in the course of the year to drive development in the Debt Capital Market (DCM).

Among the initiatives are offering a more diversified product portfolio, including short-term and Islamic (Sukuk) bonds.

The quotation of bonds of private companies; integration of the FMDQ markets to include securities dealing and investment banking firms in the fixed income secondary markets;   capacity building and financial markets education for the FMDQ markets stakeholders.

The Securities Exchange further stated that it would ensure that the financial markets provides the necessary support for economic development, as well as concentrate on Nigerian debt capital market transformation and the introduction of OTC Derivatives.

In its monthly Newsletter made available to Investors Forum, the Securities Exchange observed that it will continue to work collaboratively with its stakeholders to establish those initiatives that would enhance the development of the Nigerian DCM.

The Exchange noted that its vision of becoming the number one in Africa in the fixed income and currency markets by 2019 remained unchanged.

It added that it remained committed to its mission of empowering the financial markets to be innovative and credible in support of the Nigerian economy, adding that it would continue to strive to ensure the realisation of the goals towards making the Nigerian financial markets globally competitive.

Listing some milestones achieved by the Exchange in 2015, the Exchange said:  “In February 2015, FMDQ introduced a Risk Management Framework to address volatility in the fixed income (FX) market, ensuring that the market remained open at all times without any market shutdown.”

In the same of month of February, the Exchange said it successfully launched a technology initiative – FMDQ e-Markets- in line with its agenda of being operationally excellent. “FMDQ e-Markets, designed to suit the needs of different users in varying capacities – whether trading, investing, raising debt capital or seeking participation in the market – has proved to be an invaluable tool for various stakeholders, including FMDQ members,” the Exchange said.

– In April, Thomson Reuters launched its FX trade reporting solution for the Central bank of Nigeria (CBN) and FMDQ. This solution has helped enhance the supervisory role of Nigeria’s regulators over the FX market, automated the regulatory reporting requirements of market stakeholders, and has aided the automated tracking of FX market volumes and real time activity.

FMDQ gained admission as a “Full Member” of ASEA. The admission, which is a positive step for FMDQ towards making the Nigerian capital markets globally competitive, provides, among others, a platform for unlocking the potentials in the markets through mutual networking and communication with various Member Exchanges in Africa.

In addition, FMDQ, following International Capital Market Association (ICMA)’s Executive Committee Meeting in October 2015, also received a firm approval on its membership application and was admitted into the association.

In September, the EMDQ also launched a new membership category – “Affiliate Members” – which is ideal for institutions and individuals with a keen interest in the FMDQ markets, and an association with the financial markets, but not in a full participatory role as a Dealing, Associate or Registration Member of FMDQ, it further stated.


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