FMDQ OTC Excites NSE Boss

Date:

Nigeria Stock Exchange Chief Executive Officer Oscar Onyema.
Nigeria Stock Exchange Chief Executive Officer Oscar Onyema.

The Chief Executive Officer of the Nigerian Stock Exchange (NSE), Mr. Oscar Onyema, has said the FMDQ OTC will give opportunity to investors to enter and exit the financial markets in a more profitable way.

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While the NSE has been providing  a platform for the  trading platform of equities over the years, the NASD OTC platform was  launched last July to facilitate trading for unlisted equities. And last Thursday, the FMDQ was launched.  FMDQ will cover foreign exchange (FX) market for the United States dollar against the naira and fixed income market made up of Federal Government of Nigeria (FGN) bonds, agency bonds, state government bonds, corporate bonds, supra-national bonds, treasury bills and other money market instruments such as the commercial papers.

Speaking on the development, Onyema, who is also a board member of  the company, said FMDQ  will provide  exit and entry to investors in a more profitable manner.

“It is going to bring transparency and better price discovery into the hitherto OTC fixed income market, which is really an institutional market. We also believe it complements what we are doing at the NSE, where we list on the bonds that  have been issued in Nigeria today and where we also offer  a retail market. With the launch of FMDQ OTC, the entire spectrum, retail and institutional will  be covered and giving  people more opportunity to enter and exit the market in  a more profitable way,” he said.

Onyema noted  the Nigerian financial markets now have a better coverage

He said: “As you  know the traditional, NSE has provided listing services and trading  for equities and fixed income. The NASD is targeting companies that are not listed because  the owners of those shares still want to transfer them. And  the FMDQ is focused on money market fixed income, commercial paper, forex and more. The three of us working together, in the financial sector will  bring appropriate  price discovery, bring discipline in terms of rules and regulations because they are all self-regulatory organisations (SROs).”

Launching the platform, the Director-General of the Securities and Exchange Commission (SEC), Ms. Arunma Oteh, had said FMDQ would   bring  high level of  sophistication  to the market, make it bigger and more robust.

“So in addition to innovation, in addition to efficiency, in addition to transparency, the organisation will stand on the portal of risk management,” Oteh said.

Babatunde Akinsola
Babatunde Akinsolahttps://naija247news.com
Babatunde Akinsola is aNaija247news' Southwest editor. He's based in Lagos and writes on the Yoruba Nation political issues, news and investigative reports

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