Stakeholders Task FMDQ At 5: Derivatives Market and Demutualization As Way Forward

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Wednesday, November 07, 2018 5.30PM / Ottoabasi Abasiekong, WebTV

 

The FMDQ OTC Exchange today marked its 5th anniversary as an exchange in the fixed income and debt capital market space in Nigeria, in an event that  attracted eminent personalities and notable players in the financial market. 

It was an opportunity to reflect on the journey of FMDQ formed by the Financial Market Dealers Association in 2013 and licensed  by the Securities and Exchange Commission. 

For those that can recall it was a unique development in the Nigerian market and its launch five years ago,  had in attendance the then Director-General of the Securities and Exchange Commission Arunma Oteh and Mallam Lamido Sanusi, the Governor of Central Bank at the time. 

In 2018 Arunma Oteh, OON  has just finished her term as Treasurer/Vice-President World Bank while Mallam Sanusi Lamido Sanusi is the Emir of Kano, while the FMDQ has evolved to become a key player in the Nigerian capital market ecosystem. 

From pioneering several bonds listings to providing transparency in the fixed income market, the FMDQ has emerged as a leading hub for market development in Nigeria.

 

Commendation

The Special guest of honour HRH Mohammed Lamido Sanusi (former Central Bank Governor) and Emir of Kano, Dr Sarah Alade (former Deputy Governor of the CBN and ex-Chairman of the FMDQ) and Mr Aigboje Aig-Imoukhuede (former GMD Access Bank and pioneer Chairman, FMDQ) all lauded the FMDQ, for the remarkable strides and the impact they have made so far. 

In a conversation with Dr Wura Abiola , the Emir who was the CBN Governor when the FMDQ emerged described the exchange as one of the good stories in Nigeria, which is a positive development in the country. 

Sanusi was happy that FMDQ was involved in activities like the commercial papers, which is an avenue for alternative financing for corporates in the country. 

Dr Sarah Alade on her part in a separate conversation that featured Mr Aigboje Aig-Imoukhuede commended the FMDQ for doing a great job as a market stabilizer. 

Mr Aigboje Aig-Imoukhuede also lauded the  FMDQ for its value for  innovation and drive for excellence, which has elevated the Nigerian financial market to global standards.

 

Next Five Years and Beyond-Expectations  

HRH Mohammed Sanusi speaking on his expectations shared that his vision for the FMDQ OTC exchange has always been for it to be at the core of activities, in the international financial market.    

Sanusi also made a case for the exchange to look at how it can serve as a platform that can transform savings from current accounts in the financial market, to long term bonds and funding that can address infrastructure issues and areas like the education sector . 

Dr Sarah Alade called on the FMDQ OTC to set  out to address the following areas in the market;

  • Focus on financial deepening of the market
  • Explore expanding the derivatives market  and
  • Driving an active Nigerian inter-bank market

 

For Mr Aigboje Aig-Imoukhuede the way forward for the exchange  is “Demutualization” and addressing  the gaps in the debt capital market through the deployment of technology.

 

FMDQ to Roll Out 5-Year Plan

The MD/CEO of FMDQ OTC Exchange Mr Bola Onadele, Koko acknowledged the expectations raised for the exchange by the dignitaries and stakeholders, and used the event to disclose the plan to unveil a five-year strategy and plan to deepen the activities in the market. 

He said a committee has been set up that will look at the modalities for achieving “Demutualization”. 

Mr Onadele also noted that the FMDQ was giving top consideration to the “Derivatives Market” as a way of expanding the market frontiers, while it continues to strengthen its corporate social responsibility of  empowerment, through trainings and financial literacy.

 

FMDQ Clear

The highlights of the fifth anniversary of the FMDQ OTC Securities exchange was the official hoisting of the flags, to signal the addition of “FMDQ Clear” a Clearing house designed to deliver highly efficient post-trade services across Nigeria’s fixed income and derivatives market. 

It will aid price transparency, risk mitigation and will help to drive  inclusiveness in the market place, which are all part of FMDQ’s agenda for developing Nigeria’s market ecosystem. 

This is in partnership with Frontclear to jointly enhance Nigeria’s first central clearing house structure.

 

Proshare Nigeria Pvt. Ltd.


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