FMDQ records N113.66tr market turnover in 2016

FMDQ OTC Securities Exchange recorded N113.66 trillion market turnover in 2016, 17 per cent below N137.43 trillion in 2015.

The Exchange, in a statement, attributed the decline to last year’s, plummet in oil prices, limited access to foreign exchange, high inflation, low investor confidence (both local and foreign), among others.

The statement expressed that foreign exchange derivatives product line, propelled by the introduction of the OTC FX Futures product into the market.

“Trading activities in Treasury bills contributed the largest to overall turnover, accounting for 40 per cent of the market, the statement by FMDQ explained.

“Secured market transactions (Repos/Buy-backs) accounted for 27 per cent, whilst forex market transactions accounted for 22 per cent, Bonds, eight per cent and Money Markets transactions (which include Unsecured Placement & Takings, Commercial Papers and Money Market Derivatives), three per cent, of overall market turnover.

“The turnover represents trades executed among Dealing Members, Dealing Members & Clients, and Dealing Members & the Central Bank  of Nigeria,” the statement from FMDQ stated.

Going forward, FMDQ aimed at continuous focus on its core mandate, leveraging on and garnering the collaborative support of its stakeholders, in order to foster economic development relevant to the growth of the Nigerian financial markets.

Chief among the initiatives which FMDQ said it would focus on for 2017 include standardisation of repurchase agreements trading (with collateral management); new products development geared towards short-term and private companies’ bonds and Financial markets education for FMDQ markets’ stakeholders

Others are development of the non-interest finance (Sukuk) market; expansion of the fixed income and currency derivatives market; Nigerian debt capital market development in line with the Capital Market Master Plan of the Securities.