The FMDQ OTC Securities Exchange recorded a turnover of N130 trillion between January and November 2015.
FMDQ is a debt-focused securities exchange with a commitment to facilitate growth and development in the financial market through its efficient platform for the registration, listing, quotation and valuation of bonds.
A Market turnover report obtained by THISDAY showed that transactions were across all products lines on the FMDQ secondary market. They include: Foreign Exchange (FX), Treasury Bills (T.bills), Bonds (Federal Government of Nigeria (FGN) Bonds, Other Bonds (Agency, Sub-national, Corporate & Supranational)& Eurobonds), Money Market (Repurchase Agreements (Repos)/Buy-Backs and Unsecured Placements/Takings).
Treasury bills accounted for the highest turnover of N46.285 trillion, followed by Repurchase agreements/buy-back with N29.697 trillion. FX with recorded N25.5 trillion. Others included: Unsecured placement (N11.621 trillion); FGN bonds (10.1 trillion) and Foreign Exchange Derivatives (N6.579 trillion).
The FMDQ OTC Securities Exchange has witnessed a growth of 202 per cent within two years of operating, since it was given the license by the Securities and Exchange Commission (SEC) in December 2013.
The value of transactions has risen by 202 percent from N39.693 trillion in 2013 to N119.919 trillion as at the end of October 2015.
For the period reviewed, T.bills accounted for the highest value of N42.128 trillion as at October, rising from N11.350 trillion in 2013. Repurchase agreements/buy backs followed with N27.598 trillion, up from nothing in 2013 and N23.661 trillion in 2014.
Foreign exchange increased by more than 4 trillion from N19.549 trillion in 2013 to N23.754 trillion in 2015. Unsecured placements/takings accounted for N11.186 trillion, up from N935 billion in 2013. Federal Government of Nigeria (FGN) bonds recorded N8.733 trillion, as against N7.8 trillion in 2013.
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MD/CEO of FMDQ, Mr. Bola Onadele. Koko, FMDQ earlier in June highlighted the importance of the listing of debt securities on FMDQ, as it provides a wide range of benefits across the debt market value chain to include global visibility and transparency to the listed debts, improved secondary market liquidity, price formation and benchmark pricing, positively impacting the Nigerian debt capital market (DCM) stakeholders i.e. issuers, issuing houses, investors, market makers and regulators, and resulting in a more globally competitive capital market.