FMDQ OTC Exchange prints $37.23bn as turnover for June ‘21

Banks trade $5.4bn FX, $13.1bn RAs to lead pack

THE FI NANCIAL MARKETS DEALERS QUOTATIONs (FMDQ) OTC Securities Exchange, Nigeria’s overthe-counter securities exchange, has reported a market turnover of $37.23 billion or N15.31 trillion for the month of June 2021 by its dealing members. The turnover covers all products traded at the FMDQ secondary market, including foreign exchange, treasury bills, money market (repurchase agreements, buy-backs and unsecured placements and takings) and bonds (FGN bonds and other bonds), foreign exchange and money market derivatives. The figure, however, excludes the primary market auctions in treasury bills, bonds and foreign exchange carried out on its platform for the month.

FMDQ, an organiser of Nigerian OTC markets, collates weekly trading data

by dealing members such as banks, dealing clients, as well as the Central Bank of Nigeria (CBN), and publishes the monthly turnover figures across all the products traded on its platform.

The June 2021 market turnover report shows that a total of $5.34 billion was traded in foreign exchange while $4.77 billion was traded in foreign exchange derivatives. Also, in 19 business working days on the OTC securities exchange, there was an average daily turnover of $1.96 billion or N806 billion in June.

Total treasury bills traded on the platform declined from $3.7 billion to $3.43 billion while OMO bills fell further to $4.3 billion after previously declining to $7.94 billion in April as part of interventionist efforts aimed at mopping up excess liquidity in existence within the over the counter exchange during the period. Though the CBN special bills pumped into the margeria, to sustain liquidity level rose to $2.2 billion from $1.19 billion in April.

In the bond segment of the activity turnover report, a total of $3.22 billion was traded in federal government bonds. Also, $91 million worth of trade was recorded in the Eurobond segment of the market, just as $12 million worth of trade was recorded in the other bonds categories, including agency, sub-national, corporate, supranational bonds; and promissory notes, which recorded a total trade value of $76 million.

At the money market end of the secondary market on the FMDQ, trading in repurchase agreements or buy-backs and unsecured placements or takings, were valued at $13.11 billion and $667 million, respectively, while there were no records of trading activities in commercial papers and other money market derivatives on the FMDQ exchange.