FMDQ OTC Restates Commitment to Fixed Income Market Devt

FMDQ OTC Securities Exchange has restated its commitment to the growth and development of fixed income securities market in the country. Associate Executive Director, FMDQ, Tumi Sekoni stated this while receiving the Capital Market Development Award given to the exchange by Capital Market Correspondents Association of Nigeria (CAMCAN).

FMDQ OTC was recognised by CAMCAN for deepening the fixed income securities and debt capital market since the exchange commenced operations five years ago. Receiving the award, Sekoni commended the association for recognising FMDQ OTC for its contribution to the development of the Nigerian debt capital market.

According to her, one of the mandate of the securities exchange is to educate investors, noting that investor education is critical in order to increase retail participation in the nation’s capital market.

She said that as part of efforts to improve its service delivery, the exchange recently deployed a fixed income market STP settlement solution through its Proprietary Market System – FMDQ’s Q-ex, a customised integrated multi asset trading system with attendant post-trade services capabilities.

She said the achievement was based on the critical support of the CBN and the FMDQ Dealing Member (banks).

The management of the exchange had said FMDQ’s Q-ex has been integrated with the CBN’s Scripless Securities Settlement System (S4) to provide STP capabilities for efficient settlement in the fixed income market, improving the efficiency of the trading, reporting and settlement processes, whilst further developing, in no small measure, the Nigerian financial markets.

“Q-ex provides an unrivalled means through which trades executed by its Members (currently the Dealing Member (Banks), are reported and subsequently settled, with minimal to no human intervention, via the respective channels.

“The deployment of the FMDQ Q-ex Settlement Solution operated by FMDQ Clear Limited, a wholly-owned subsidiary of FMDQ, will essentially streamline business processes to reduce friction along the fixed income trades settlement valuechain, boost productivity of the market participants and promote efficiency of post-trade services.

“It can be argued that the Nigerian fixed income market has not been performing at its optimum, as the market has been marked with bouts of low productivity, inefficiency and invariably, settlement defaults, all of which would likely have marred the market’s integrity and significantly lowered investor confidence,” the exchange said.

FMDQ OTC Securities Exchange explained that with integrity being one of the key ingredients for a successful market, as adjudged by global counterparts, the achievement of STP in the fixed income market via the integration of Q-ex and the CBN’s S4 could not have come a moment too soon.