The total turnover for the month of January 2018 on the FMDQ OTC platform amounted to N11.71 trillion, according to the management of the exchange.
Trading activities in T.bills contributed the largest to overall turnover, accounting for 39.24 per cent of the market. FX market transactions (Foreign Exchange and Foreign Exchange Derivatives) accounted for 37.50 per cent whilst Repurchase Agreements (Repos)/Buy-Backs product categories (Repos/Buy-backs) accounted for 15.87 per cent, with Bonds and Unsecured Placement & Takings representing 6.63 per cent and 1.03 per cent respectively, of overall market turnover.
The top ten Dealing Members (Banks) accounted for 75.36 per cent (N8.82trn) of the overall turnover in the market, with the top three accounting for 67.05 per cent (N5.92trn) of this sub-section of the market.
Stanbic IBTC Bank Plc, Access Bank Plc and Standard Chartered Bank Nigeria Limited commenced the year as the leaders in the value traded for the overall over-the-counter (OTC) market, ranking 1st, 2nd and 3rd respectively.
Meanwhile, on Wednesday, February 28, 2018, the 20th OTC FX Futures contract, NGUS FEB 28 2018, with notional amount $353.26 million, matured and settled on FMDQ OTC Securities Exchange (FMDQ or the OTC Exchange).
This maturity brings the total value of matured Naira-settled OTC FX Futures contracts on FMDQ, since the inception of the market in June 2016, to approximately $8.03 billion.
In line with the guidelines stipulated in the FMDQ OTC FX Futures Market Operational Standards, the NGUS February 28 2018 contract stopped trading eight days before its maturity and was valued against the NAFEX – the Nigerian Autonomous Foreign Exchange Fixing – the FMDQ reference spot FX rate published on Wednesday, February 28, 2018.
The associated clearing/settlement activities were effected accordingly, in line with the standards.
The Central Bank of Nigeria (CBN), as observed over the last nineteen maturities, introduced a new contract, NGUS FEB 27 2019 for $1.00 billion at $/N362.09 to replace the matured contract. The apex bank also refreshed its quotes on the existing one to eleven month contracts.
Meanwhile, wholly owned by the Federal Government of Nigeria (FGN) through the Ministry of Finance (MoF) and incorporated by the Debt Management Office (DMO), the N100.00 billion Federal Roads Sukuk Company 1 Plc 7-Year 16.47 per cent IjarahSukuk due 2024, was formally listed on FMDQ’s platform this month.
Similar to the historic listing of the FGN Eurobonds on domestic exchanges, this is yet another commendable feat for the FGN, with the MoF and DMO, in their respective roles, championing development in the Nigerian debt capital markets.
Being the pioneer sovereign Sukuk, this issuance will serve as a benchmark for the pricing of subsequent Sukuk issuances and provide a boost for other arms of government and the private sector to issue non-interest-bearing securities.
