FMDQ gets SEC approval to become full-fledged securities exchange - THE GUARDIAN
By Helen Oji
The FMDQ OTC Plc has said its transition from an Over-The-Counter to a full-fledged securities exchange is now realized with the approval of the Securities and Exchange Commission (SEC), the capital market’s apex regulator.
Consequently, it has changed its name to FMDQ Securities Exchange Plc, following which it activated two wholly-owned subsidiaries- FMDQ Clear Limited (FMDQ Clear) and FMDQ Depository Limited (FMDQ Depository).
According to the exchange, both subsidiaries are positioned to provide efficient post-trade services, among others, for the Nigerian financial market, thus making FMDQ a one-stop Financial Market Infrastructure (FMI) Group and an integrated platform to execute, clear and settle financial market transactions.
Furthermore, FMDQ explained that a new logo was unveiled on August 5, 2019, for the new entities, to give them individual identities, even as the new FMDQ logo continues to maintain “its vibrant colours – deep blue, depicting trust, confidence, depth, and stability; bright gold, showing off passion, value, prestige, quality and prosperity; and a touch of cool grey, representing conservativeness, professionalism, sophistication and communicates FMDQ’s drive to ‘consistently move forward’”.
The management expressed satisfaction at the opportunities ahead while restating its commitment to its transformation agenda and the desire to align the Nigerian financial markets with global standards and best practices.
FMDQ has also admitted a total of 78 debt securities worth N1.03 trillion in the year ended December 31, 2018, as against 50 securities valued at N236.9 billion in the previous year, 2017.
The Chairman of the exchange, Dr. Okwu Joseph Nnanna, at the seventh general meeting of the company, in Lagos, explained that the Federal Government’s Sukuk and Green Bond valued at N110.7 billion were admitted, while Lagos State Government’s Series 11 Tranche A and B bonds valued at N85.14 billion and 60 Commercial Papers (CPs) worth N505.30 billion were listed on the platform during the year under review.
He stated that the exchange engaged in strategic collaborations in 2018 to promote the Nigerian Debt Capital market as a source for long term finance as well as develop the Nigerian green bond market.
The Managing Director/CEO, Bola Onadele, said: “The strategic horizon for FMDQ in 2019, is the integration of our market with external markets with a focus on consolidating operations across the full value chain of the financial market, to operate a fully diversified and integrated financial market infrastructure group, offering execution and settlement opportunities to market stakeholders.
“In line with FMDQ’s market integration agenda, 2019 will see full operationalization of the dealing member specialist market to reduce fragmentation and further consolidate the market, as well as foster retail participation in the fixed income space,” he said.