The Central Bank of Nigeria (CBN) in an effort to enhance efficiency in trading and post-trade activities and build confidence in the financial markets, hereby directs all Deposit Money Banks (DMBs) to pledge collateral of N1billion (One Billion Naira) worth of Government Securities for OTC trade settlement.
The pledge requirement is mandatory for all DMBs that wish to participate in OTC Trade Settlement. Lack of provision of the pledge or failure to top-up a pledge when required will result in exclusion from the market.
This circular takes effect from June 1, 2018.
Please ensure compliance.