FMDQ OTC Exchange Facilitates N7.4trn Investment in One Month

The FMDQ OTC Securities Exchange facilitated investment worth N7.35 trillion in the fixed income and currency markets in January 2016. Despite the challenges in the foreign exchange (FX) market, activities in FX led, contributing 28.2 per cent to the turnover. Treasury Bills (T.bills) accounted for 28.16 per cent, while Secured market transactions (Repos / Buy-Backs) accounted for 24.3 per cent, just as Federal Government of Nigeria (FGN) Bonds contributed 15.79 per cent. Unsecured Placements/ Takings accounted for 3.26 per cent.

A further analysis of the market performance showed that FX transactions stood at $8.92 billion, which indicated a decline of $1.97 billion or 18.1 per cent compared to the value traded in December, with an average daily turnover of $0.45 billion.

Year-on-year (YoY), FX trans- actions recorded a $11.26 billion, which is 43.2 per cent decline, due mostly to the change in Interbank trading style to order based. However, membermember trades increased by $78.68 million or 6.9 per cent as a result of an increase in spot transactions and settled at $1.22 billion.

On the other hand, transactions in the member-client trade category recorded a decline of $2.05 billion to end the month at $7.70 billion. On aggregate, spot and swaps transactions, both declined by $1.37 billion and $0.61 billion in the month as compared to values recorded in December 2015.

The fixed income market experienced increased activity in the month recording a turnover of N3.23trn, which is 23.4 per cent above the preceding month performance. T.bills accounted for 64 per cent of the fixed income turnover, recording N2.07 trillion, which is 6.0 per cent higher than the amount recorded in December.

Turnover of FGN bonds

settled at N1.16 trillion, showing an increase of 74.8 per cent when compared with the previous month’s performance.

Activities in the secured markets (Repos/Buy-backs) settled at N1.79 trillion, which is N82.2 billion or 4.4 per cent below the value recorded in December.

Unsecured Placements/ Takings declined by N112.19 billion fell 31.9 per cent to be at N239.54 billion for the month, which translated to a decline of N784.04 billion YoY.

The FMDQ OTC Securities Exchange was licensed by the Securities and Exchange Commission (SEC) in 2013 as an over-the-counter (OTC) securities exchange and selfregulatory organisation to run the fixed income trading platform and organise the market to international standards.