Stanbic, Access, UBA lead value trading in FMDQ OTC market
STANBIC IBTC HOLDINGS PLC, Access Bank Plc and United Bank for Africa Plc (UBA) have been rated as the top three commercial banking institutions to have contributed to the growth of the overall value traded on the FMDQ OTC Securities Exchange from January to November 2018.
A report from the OTC exchange made available to business a.m noted that these institutions accounted for N73.313 trillion overall turnover or 58.4 percent of the overall value traded on the FMDQ between January and November 2018.
According to the report, “the top ten dealing members (Banks) accounted for 75.77 percent or N125.14 trillion of the overall turnover in the market, with the top three accounting for 58.44 percent or N73.13 trillion of this sub-section of the market.”
“Stanbic IBTC Bank, Access Bank and United Bank for Africa were the leaders in the value traded for the overall over-the-counter (OTC) market, ranking first, second and third respectively.”
According to FMDQ report, Standard Chartered Bank Nigeria Limited came fourth, while Ecobank Nigeria Limited and First Bank of Nigeria Limited came fifth and sixth respectively.
Citibank Nigeria Limited ranked seventh, Guaranty Trust Bank Plc came eight while Coronation Merchant Bank Limited and Zenith Bank Plc were ranked ninth and tenth respectively.
The report stated that total turnover for the January to November 2018 period amounted to N165.15 trillion with trading activities in Treasury bills contributing the largest to overall turnover, accounting for N65.7 trillion of the market.
Foreign Exchange market transactions (Spot FX and FX Derivatives) accounted for N40.13 trillion while Repurchase Agreements (Repos)/ Buy-Backs product categories (Repos/Buy-backs) accounted for N26.8 trillion.
Foreign exchange derivatives accounted for N20.5 trillion between January and November 2018. A total of N11.07 trillion and N105.5 billion FGN Bonds and Agency, Sub-national, Corporate & Supranational Bonds were traded between January and November 2018 respectively.
The report explained that “FMDQ continues to avail its credible and efficient platform as well as tailor its Listings, Quotations and Noting services to suit the needs of issuers.
“With the growing interest of corporate entities in the commercial paper (CP) market to finance their shortterm funding needs, the OTC Exchange has, following the due diligence of the responsible Board Committee approved the successful registration of the Mixta Real Estate PLC N15.00 billion CP Programme and the Eterna PLC N10.00 billion CP Programme.
“These are in addition to the approval for formal admission and quotation of the FBNQuest Merchant Bank Limited N7.42 billion Series 1 – 4 CPs under its N100.00 billion CP Programme and the FSDH Merchant Bank Limited N257.57 million Series 7 and N15.08 billion Series 8 CPs under a N30.00 billion CP Issuance Programme on the FMDQ platform.
“By quoting these CPs on FMDQ, these issuers are availed benefits which include, but are not limited to, enhanced investor confidence in the issuer, transparent/relevant information disclosure on the issue, effective price formation and global visibility.
“As these corporate entities and a host of others continue to effectively and sustainably meet their funding needs, as well as contribute to the development of the nation’s debt markets, FMDQ will continue to take crucial steps, in collaboration with market stakeholders, towards promoting transparency, governance, integrity and efficiency in the Nigerian CP market.”