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Naira Settled Currency Futures Open Interest Report @ October 21, 2016


By Mutual Funds Nigeria


The FMDQ NIFEX Spot decreased by N1.69 or 0.53% ending the day at a rate of N316.875 against the previous day’s rate of N318.5625 as Naira gains slightly against the dollar.

Open Interest and Volume Analysis

Open interest in currency futures increased by 0.41% from $3,638.23 million to $3,653.01 million as investors purchased $14.78 million additional notional futures contract. 3 out of the 12 existing currency futures recorded activities of some sort with the NGUS SEP 20 2017 recording the highest volume of $10 million.

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Mark to Market Analysis and Attribution

The estimated Mark to Market (MTM) of open interest now stands at N199.466 billion, a decrease of 2.57%, (N5.27 billion) over previous day’s Mark to Market value of N204.732 billion. The decrease in MTM is attributed mostly to the decrease in NIFEX rate which resulted in a decrease in MTM of N6.14 billion while the additional contracts increased MTM by N0.872 billion leaving a net decrease in MTM of N5.27 billion.

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The next futures in line on the maturity continuum is the NGUS OCT 26 2016 which matures on October 26, 2016. If this was to mature today, the short position holder will pay N6.875 billion.

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Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

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