FMDQ recorded N113.66t turnover in 2016 – Report

The FMDQ OTC Securities Exchange recorded a turnover of N113.66 trillion between January and December 2016.
The figure was against the N137.40 trillion worth of transactions posted in 2015, a 17.28 per cent decline.
The News Agency of Nigeria obtained the report from the company on Wednesday in Lagos.
The report attributed the decline to plummeting oil prices, limited access to foreign exchange, high inflation and lower investor confidence.
The report said: “However, despite the overall Year-on-Year decline, the OTC Exchange experienced positive growth in the Foreign Exchange Derivatives product line propelled by the introduction of the OTC FX Futures product into the market.”
The turnover included transactions in over-the-counter market for foreign exchange comprising treasury bills, bonds and derivatives, among others.
A breakdown of the transactions showed that treasury bills were the most traded product with N45. 45 trillion, representing 40 per cent of the total turnover, while repurchase agreements/buy backs accounted for N31.18 trillion.
Foreign exchange had a turnover of N13.87 trillion; foreign exchange derivatives traded N11.05 trillion, while FGN Bonds accounted for N9.04 trillion, among others.
The report indicated that 10 banks namely: Access Bank, UBA, Stanbic IBTC, Ecobank, First Bank of Nigeria and Diamond Bank were among the top 10 top dealing members in 2016.
Others were Citi Bank, FCMB, Standard Chartered Bank and Union Bank.
The report stated that FMDQ, since its launch in 2013, had championed initiatives geared at providing an enabling environment for the growth and development of the Nigerian fixed income, currencies and derivatives markets and the economy at large.
It added that the OTC Exchange had through its product and market development initiatives, empowered markets within its purview to enhance their global competitiveness, transparency and liquidity.
It said: “As a self-regulatory organisation and front-line regulator of its members’ activities, FMDQ has led strategic initiatives to ensure that requisite and quality oversight is availed to make the Nigerian markets credible in line with international standards.”