FMDQ OTC Market Records N67.4tr Transactions in 6 Months

By Modupe Gbadeyanka

Latest report released by FMDQ OTC Securities Exchange has revealed that a turnover of N67.4 trillion ($215.9 billion) was recorded at the FMDQ OTC Market from January 2017 to June 2017.

In the report seen by Business Post, it was revealed that amount include the transactions on all products traded on the FMDQ secondary market; forex, treasury bills (T.bills), bonds (FGN bonds, other bonds [Agency, Sub-national, Corporate & Supranational) & Eurobonds]) and Money Market (Repos/Buy-Backs and Unsecured Placements/Takings).

However, the report stressed that these figures exclude primary market auctions in T.bills and bonds.

The  data,  collated  from  the  weekly  trade  data  submissions  by  FMDQ  Dealing  Member  (Banks), represents trades executed amongst the Dealing Member (Banks), Dealing Member (Banks) & Clients, and Dealing Member (Banks) & the Central Bank of Nigeria (CBN).

The month of June 2017 recorded N12.62 trillion in turnover, a growth of circa 33 percent when compared with N9.49 trillion recorded in May 2017, bringing the total year-to-date turnover to N67.37 trillion.

The month-on-month growth was primarily driven by increased trading activities experienced in the

Treasury Bills and Repurchase Agreements (Repos)/ Buy-Backs product categories, which respectively make up circa 43 percent and circa 28 percent of overall turnover; whilst FX market transactions accounted for circa 22 percent,  Bonds, circa 6 percent, with Unsecured Placement & Takings, Money Market Derivatives and Commercial Papers representing circa 1 percent of overall market turnover, the report said.

An analysis of the transactions during the period under review showed that Foreign Exchange recorded N6.3 trillion, while Foreign Exchange Derivatives raked N7.9 trillion.

Furthermore, Treasury Bills recorded N31.3 trillion, FGN Bonds N5.4 trillion, Other Bonds N1.6 billion, and Eurobonds N51.4 billion.

In addition, Repurchase Agreements/Buy-Backs raked N15.7 trillion, Unsecured Placements/Takings recorded N671.8 billion, and Money Market Derivatives had N19.6 billion transactions in the period under review.