FMDQ admits 78 debt securities worth N1.03trn in 2018

FMDQ Securities Exchange Plc admitted 78 debt securities worth N1.03 trillion for the financial year ended Dec. 31, 2018.

Dr Joseph Nnanna, the exchange Chairman, disclosed this at the company’s 7th Annual General Meeting (AGM) on Friday in Lagos.

Nnanna said the 78 debt securities were in contrast with 50 securities valued at N236.87 billion achieved in the corresponding period of 2017, an increase of 58 per cent.

He said the Federal Government’s Green Bond and Sukuk worth N110.69 billion as well as Lagos State Government’s Series 11 Tranche A and B bonds valued N85.14 billion were listed during the review period.

The chairman noted that 60 Commercial Papers (CPs), 15 bonds and three funds were listed and quoted on the platform in 2018.

He added that the company’s membership in 2018 rose by seven per cent to 195, compared with 185 posted in 2017.

Nnanna said the company, during the period, engaged in strategic collaborations to promote the Nigerian Debt Capital Market as a source for long term finance as well as develop the Nigerian green bond market.

He said the exchange completed the registration of its central clearing and settlement house – FMDQ Clear, and also launched a proprietary market system (FMDQ Q-ex), a fully integrated multi-asset trading system with post trade services’ capabilities.

He said FMDQ’s Derivatives Market Development project was also launched in 2018 to concentrate corporate effort targeted towards developing a more vibrant derivatives market in Nigeria.

According to him, the first phase of the project focused on developing the relevant market framework and the delivery of introductory training and empowered sessions to market participants.

He said the second phase of the project had been broadly focused on activities and deliverables relating to legal and regulatory documentation, system deployment and operational readiness, among others.

Nnanna explained that there would be further training sessions towards the launch of the initial products in 2020.

The company also revealed plans to adopt a Holding Company structure after successfully adopting a new brand name (FMDQ Securities Exchange Plc) in the year under review.

Presenting the company’s financial performance at the meeting, Nnanna said the company’s revenue jumped by 423.81 per cent to N13.25 billion.

He stated that the profit before tax soared by 1,960 per cent to N7.21 billion following the diversification and expansion of the business to incorporate clearing and settlement services.

Nnanna said turnover from trading activities on the platform rose by 22 per cent to N182.62 trillion in 2018.

On 2019 outlook, he said the company would focus on strengthening further the clearing and settlement franchise following the successful operationalisation of its wholly owned central clearing house (CCH) subsidiary, FMDQ Clear in 2018.

The chairman said this would enhance its readiness to operate a full-fledged central counterparty (CCP) in 2019.

“The objective would be to further boost its value delivery to the fixed income, foreign exchange and derivatives markets,” he said.

Also speaking, Mr Bola Onadele, the company’s Managing Director, said the strategic horizon for FMDQ in 2019 was the integration of its markets with external markets, with a focus on consolidating operations across the full value chain of the financial market.

Onadele said the exchange would operate a fully diversified and integrated financial market infrastructure group, offering execution and settlement opportunities to market stakeholders.

“In line with FMDQ’s market integration agenda, 2019 will see full operationalisation of the dealing member specialist market to reduce fragmentation and further consolidate the market, as well as foster retail participation in the fixed income space,” he said.