T-Bills Contributes 42.5% to FMDQ N142tr Turnover in 2017

By Modupe Gbadeyanka

A total of N142 trillion market turnover was realized on the trading floor of the FMDQ OTC Securities Exchange in 2017.

This was buoyed by the platform’s drive to support and champion growth and development in the Nigerian debt capital, foreign exchange (FX) and derivatives markets.

According to its 39th edition of its monthly report made available to Business Post on Wednesday, FMDQ noted that the turnover for last year showed a year-on-year growth rate of 24.97 percent from the N113.65 trillion recorded in 2016.

FMDQ has remained steadfast and continues to focus on delivering its mandates for these markets, in support of the realisation of the economic development agenda for Nigeria, leveraging on relevant collaboration and the effective support of financial market stakeholders in 2017.

In its report, FMDQ stressed that the growth achieved last year was primarily driven by trading activities in the FX and treasury bills markets.

According to the report, trading activities in the T-bills market contributed the largest to overall turnover, accounting for 42.47 percent of the total market turnover, whilst FX transactions (including FX derivatives) followed with a combined share of 26.90 percent, and Repos/Buy-backs accounting for 22.46 percent.

It added that bonds and money market transactions (including Unsecured Placement & Takings, Commercial Papers and Money Market  Derivatives), on the other hand, had smaller shares of the market, accounting for 7.01 percent and 1.16 percent respectively.

“This turnover represents trades executed among Dealing Members, Dealing Members & Clients, and Dealing Members & the Central Bank of Nigeria (CBN),” the reports noted.

Focused on promoting the development of the markets within its purview through the roll out of innovative initiatives in 2018, with an even expanded scope to unlock capital through the markets for the development of the Nigerian economy, FMDQ said it would continue to work with its stakeholders to make the Nigerian financial markets Globally Competitive, Operationally Excellent, Liquid and Diverse (GOLD).