FMDQ, S&P Dow Jones Indices Begin Co-branding of Indices

August 1, 2018
FMDQ, S&P Dow Jones Indices Begin Co-branding of Indices

By Modupe Gbadeyanka

FMDQ OTC Securities Exchange (FMDQ), the foremost debt capital, foreign exchange and derivatives over-the-counter (OTC) securities exchange in Nigeria, and S&P Dow Jones Indices (S&P DJI), the world’s leading provider of financial market indices, had in 2017, announced the signing of a cooperation agreement to create and launch co-branded fixed income indices.

On July 2, 2018, the successful transition of the S&P/FMDQ Nigeria Sovereign Bond Index marked the activation of the inaugural co-branded index under the agreement.

A range of other S&P/FMDQ Fixed Income indices will be developed under the agreement. The S&P/FMDQ Nigeria Sovereign Bond Index, formerly branded as S&P Nigeria Sovereign Bond Index, tracks the performance of local currency denominated sovereign debt publicly issued by the government of Nigeria in its domestic market.

Alex Matturri, CEO of S&P Dow Jones Indices said: “We are pleased to collaborate with FMDQ to create benchmarks for Nigeria’s domestic fixed income markets.

“This is S&P Dow Jones Indices’ first-ever agreement with an Africa-based securities exchange to offer fixed income indices.

“The successful transition of the S&P/FMDQ Nigeria Sovereign Bond Index marks the beginning of our joint efforts to establish a more transparent environment for market participants to gain insights in to the Nigerian capital markets.”

According to Mr Bola Onadele Koko, Managing Director/CEO, FMDQ, “FMDQ, as part of its ‘GOLD’ (Global Competitiveness, Operational Excellence, Liquid & Diverse) agenda for the Nigerian financial markets, is committed to developing and increasing the market accessibility for all stakeholders including the investors.

“We are delighted to collaborate with S&P Dow Jones Indices to further deepen the markets through these index-based solutions and measures.

“As we see more domestic and global demand for diverse and innovative investment products, the S&P/FMDQ index family will critically serve to raise the global exposure of the Nigeria fixed income assets and represent an opportunity to increase trading flows to the Nigerian financial markets.”

Modupe Gbadeyanka

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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