The launch of Bloomberg E-Bond trading and market surveillance system, a new electronic trading system for Nigerian government bonds, was yesterday announced by Bloomberg and FMDQ OTC PLC, developers of the system.
The new trading system commenced operation immediately, under FMDQ’s over-the-counter (OTC) market securities exchange.
“As a newly established OTC market securities exchange, our goal is to empower the Nigerian OTC financial markets to be efficient, credible and globally competitive,” FMDQ OTC PLC’s Divisional Head, Operations and Technology, Dipo Odeyemi, said.
The new system will provide electronic trading and market surveillance tools for participants in Nigeria’s N12 trillion ($73 billion) fixed income market, Africa’s largest local currency bond market.
Kenya, Zambia and Botswana are other strong fixed income markets in Africa. In 2013, The Financial Times reported Kenya as the most developed local bond market in Africa, despite not being the largest.
The Bloomberg E-Bond system is expected to develop Nigeria’s bond market by providing a complete, consolidated marketplace for government bonds and offering market participants a robust and flexible set of tools that will support the full trade workflow.
“A well-functioning debt market needs an efficient technical infrastructure, bespoke trading rules, market surveillance and straight-through processing,” says David Tamburelli, Bloomberg’s Head of Emerging Markets Product, adding that Bloomberg’s E-Bond system can address those needs.
He expressed delight at the opportunity to collaborate with FMDQ to build a more transparent, liquid and efficient bond market in Nigeria, which local bond markets in Sub-Saharan Africa have lacked over the years, according to The Financial Times.
Officially launched unto the Nigerian financial landscape by the Central Bank of Nigeria on November 7, 2013, FMDQ OTC PLC is aimed at developing the country’s financial market and foster its integration with global markets. The new electronic trading system is expected to help FMDQ achieve these goals.