SEC Grants Approval to FMDQ to Become Full-Fledged Securities Exchange

The capital market’s apex regulator, Securities and Exchange Commission (SEC), announced the transition of FMDQ OTC Plc from an Over-The-Counter to a full-fledged securities exchange.

According to the exchange, both subsidiaries are positioned to provide efficient post-trade services, among others, for the Nigerian financial market, thus making FMDQ a one-stop Financial Market Infrastructure (FMI) Group and an integrated platform to execute, clear and settle financial market transactions.

FMDQ further revealed that a new logo was unveiled recently, for the new entities, to give them individual identities, even as the new FMDQ logo continues to maintain “its vibrant colours – deep blue, depicting trust, confidence, depth, and stability; bright gold, showing off passion, value, prestige, quality and prosperity; and a touch of cool grey, representing conservativeness, professionalism, sophistication and communicates FMDQ’s drive to ‘consistently move forward’”.

Accordingly the exchange has changed its name to FMDQ Securities Exchange Plc, following which it activated two wholly-owned subsidiaries- FMDQ Clear Limited (FMDQ Clear) and FMDQ Depository Limited (FMDQ Depository).

The management expressed satisfaction at the opportunities ahead while restating its commitment to its transformation agenda and the desire to align the Nigerian financial markets with global standards and best practices.

FMDQ has also admitted a total of 78 debt securities worth N1.03 trillion in the year ended December 31, 2018, as against 50 securities valued at N236.9 billion in the previous year, 2017.

Speaking recently during the seventh general meeting of the company, in Lagos, The Chairman of the exchange, Dr. Okwu Joseph Nnanna, said that the Federal Government’s Sukuk and Green Bond valued at N110.7 billion were admitted, while Lagos State Government’s Series 11 Tranche A and B bonds valued at N85.14 billion and 60 Commercial Papers (CPs) worth N505.30 billion were listed on the platform during the year under review.

He stated that the exchange engaged in strategic collaborations in 2018 to promote the Nigerian Debt Capital market as a source for long term finance as well as develop the Nigerian green bond market.

Also Speaking, the MD/CEO, Bola Onadele, said: “The strategic horizon for FMDQ in 2019, is the integration of our market with external markets with a focus on consolidating operations across the full value chain of the financial market, to operate a fully diversified and integrated financial market infrastructure group, offering execution and settlement opportunities to market stakeholders.

Onadele further explained that, “In line with FMDQ’s market integration agenda, 2019 will see full operationalization 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”.