19th OTC FX Futures Contract Matures, Settles on FMDQ
By Modupe Gbadeyanka
With a total of $10.95 billion worth of the Naira-settled OTC FX Futures contracts traded on FMDQ, the Futures Exchange, transactions and activities have commenced in earnest for 2018, with the 19th OTC FX Futures contract, NGUS JAN 31 201 8, with notional amount $321.60 million, which matured and settled on FMDQ on Wednesday, January 31, 2018.
This maturity brings the total value of matured contracts on FMDQ, since the inception of the market in June 2016 to date, to circa $7.67 billion.
As with the other maturities, and in line with standards stipulated in the FMDQ OTC FX Futures Market Operational Standards, the contract stopped trading eight days before its maturity and was valued against the NAFEX–the Nigerian Autonomous Foreign Exchange Fixing–the FMDQ reference spot rate published on Wednesday, January 31, 2018.
The associated clearing/settlement activities were effected accordingly, in line with the standards stipulated.
Consistent with its treatment across the past 18 maturities, the Central Bank of Nigeria (CBN) introduced a new contract, NGUS JAN 30 2019 for $1 billion at $/N362.27 to replace the matured contract and refreshed its quotes on the existing contracts.
Quotes on the existing 1-to 11-month contracts have been updated and are published daily as open contracts on FMDQ’s website at www.fmdqotc.com.