The launch of a game-changing market infrastructure, FMDQ OTC Securities Exchange onto the Nigerian financial markets landscape, on November 7, 2013, marked the beginning of a unique and much-needed revolution for the Nigerian financial markets, particularly the fixed income, currencies and derivative markets space.
Market analysts have opined that the OTC exchange brought about an unprecedented and favourable change, such as increase in operational efficiency, reduction in transaction costs, product innovation, market development, and increased opportunity for creation of diversified market activities, amongst others.
The OTC Exchange, having sustained its commitment through the years to transform and make the Nigerian financial markets “GOLD” , acronym for Globally Competitive, Operationally Excellent, Liquid and Diverse, with the invaluable support of market regulators including the Securities and Exchange Commission and the Central Bank of Nigeria, among others, and stakeholders including the Financial Markets Dealers Association, will on Wednesday, November 7, 2018, turn five.
To commemorate its five years of innovation, resilience, value-adding and most importantly, immeasurable collaboration with its varied stakeholder groups, FMDQ on Monday announced that it will be embarking on a modest week-long series of commemoration activities, culminating with the inaugural FMDQ GOLD awards on November 9, 2018.
The FMDQ GOLD awards is a first of its kind in the Nigerian fixed income, currencies and derivatives markets, geared at recognising the commitments and invaluable contributions of FMDQ’s market participants and stakeholders who have contributed towards the growth and development of the markets.
Recounting achievements of the Exchange Kaodi Ugoji, FMDQ associate executive director, corporate development, stated that it has been an extremely challenging but exciting run-up to five years, from inception in November 2013 to date, for the OTC Exchange.
“From the activation of the FMDQ Listings and Quotations Franchise which saw the eventual listing of pioneer debt securities, including but not limited to the sovereign Eurobonds (first on a domestic securities exchange), Green Bonds & Sukuk on the platform of the OTC Exchange; to product and market development with the introduction of Short-Term Bonds, rejuvenation of the Commercial Papers market and the establishment of FMDQ Clear, the first Central Clearing House in Nigeria, providing efficient post-trade workflows to ensure settlement finality.”
Also steadily impacting development of the markets and by extension the Nigerian economy are, the FMDQ Academy launched to support the OTC Exchange’s financial markets education drive for its stakeholders as well as FMDQ Next Generation Financial Market Empowerment Programme (FMDQ-Next), a learning and development initiative targeted at students across all levels (primary, secondary and tertiary), as well as fresh graduates, within the country; and finally, the recent hosting of the British Prime Minister, Theresa May, which followed the move to a new business complex, Exchange Place.
Ugoji however stated that “in all of this, however, we recognise that the achievements over these past years could not have happened without the immense support and commitment shown by our world of stakeholders – from the regulators to our esteemed Members and other players in the Nigerian capital market – and during this week as we reflect on all that has brought us this far, we are desirous of acknowledging the collective feats achieved by us all within this period.”
Looking forward to the next five years, Ugoji said FMDQ remain unyielding in its commitment to continue to accelerate innovative capabilities to provide unrivalled solutions that will aid the development of the Nigerian financial market in order to transcend it to international standards.”
Launched as an over-the-counter (OTC) market and self-regulatory organisation, FMDQ has steadily deployed product innovation and market development initiatives as well as provided the requisite market connectivity and architecture needed to transform the markets within its purview.