FMDQ OTC market records N165trn in turnover for 2018

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Amidst sell offs and the predominant rout in the equities market the Financial Markets Dealers Quotations Over-the-Counter (FMDQ OTC) Securities exchange recorded huge volumes in 2018 as transaction turnover was little over N165.1 trillion.

The FMDQ OTC Market Turnover Report shows the turnover on all products traded on the FMDQ secondary market – Foreign Exchange (FX), Treasury Bills (T-bills), Bonds (FGN Bonds, other Bonds (Agency, Sub-national, Corporate & Supranational) & Eurobonds)) Commercial Papers and Money Market (Repos/Buy-Backs and Unsecured Placements/Takings). These figures exclude primary market auctions in T-bills and Bonds.

This figure was an improvement over 2017 turnover of N142 trillion which represents a 16.3 percent growth in the business transacted by the largest financial market in the country.
Treasury Bills dominated the volumes of transactions made in 2018 accounting for 39.7 percent of total turnover while Foreign Exchange and Buy Backs followed with 24.2 percent and 16.2 percent of the total turnover respectively. The top 3 transactions represents over 80 percent of the entire market turnover leaving bonds, commercial papers, unsecured placements and money market derivatives with the remaining 20 percent.

Stanbic IBTC Bank was the leading dealer member by overall market turnover with Access Bank and United Bank for Africa completing the list. The top ten (10) Dealing Member (Banks) accounted for 75.77 percent (N125.14 trillion) of the overall turnover in the market, with the top three (3) accounting for 58.44 percent (N73.13 trillion) of this sub-section of the market.

On bind listings, the newsletter stated that “A review of market participation for bond listings revealed that of the thirty (30) FMDQ RMLs, only eight (8) were sponsors to bonds listed on the OTC Exchange in the period.

FBNQuest Merchant Bank Ltd., Lotus Financial Services Ltd. and Chapel Hill Advisory Partners Ltd. came 1st, 2nd and 3rd respectively in this category, with FBNQuest Merchant Bank Ltd. and Lotus Financial Services Ltd. co-sponsoring the Federal Roads Sukuk Company, 1 PLC bond and Chapel Hill Advisory Partners Ltd. sponsoring the N85.14 billion Lagos State Government of Nigeria bond.”

“The CP market saw the participation of four (4) RMQs out of thirty- two (32) FMDQ RMQs in this category. The top three (3) positions were occupied by Stanbic IBTC Capital Ltd., Coronation Merchant Bank Ltd. and Chapel Hill Advisory Partners Ltd. with market participation of 61.30% 31.34% and 27.52% respectively, of the total value of the CPs quoted within the period,” as stated in the document

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) and the CBN

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