FMDQ Posts 17% Plunge in Market Turnover in 2016


The over the counter market, FMDQ OTC has reported a total market turnover of N113.66 trillion for the 2016 financial year, a 17 percent decline from N137.43 trillion in 2015The OTC Exchange said despite the overall YoY decline, it experienced positive growth in the Foreign Exchange Derivatives product line, driven by the introduction of the OTC FX Futures product into the marke

“Trading ivities in T.bills contributed the largest to overall turnover, accounting for 40 percent of the market. Secured market transactions (Repos/Buy-backs) accounted for 27 percent, whilst FX market transactions accounted for 22.0 percent, Bonds, 8 percent and Money Markets transactions (which include Unsecured Placement & Takings, Commercial Papers and Money Market Derivatives), 3 percent, of overall market turnover,” it said.

“The turnover represents trades executed among Dealing Members, Dealing Members & Clients, and Dealing Members & the Central Bank of Nigeria. Though mindful of the economic headwinds, FMDQ looks ahead into 2017 with much enthusiasm. The OTC Exchange expects to continue to 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.”

It said: “As a market organiser, the OTC Exchange has through its product and market development initiatives empowered the markets within its purview to enhance their global competitiveness, transparency and liquidity.

“As a self-regulatory organisation and front-line regulator of its Members’ activities, FMDQ has led strategic initiatives, ensuring that requisite and quality oversight is availed to make the Nigerian markets credible, in line with international standards.”

FMDQ said it had since its launch onto the Nigerian financial markets landscape in 2013, championed initiatives geared towards providing an enabling environment for the growth and development of the Nigerian fixed income, currencies and derivatives markets and the economy at large.









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