The Nigerian financial market is set to receive a boost as plans have been concluded for the commencement of operations by the FMDQ OTC dealers.
The Financial Markets Dealers Association, an association of the treasurers of banks and discount houses in Nigeria, commenced the project to create a self-regulatory organisation (SRO) in 2009 with the primary purpose of deepening the inter-bank OTC market trading in various securities and products. Thereafter the association promoted the formation of FMDQ OTC PLC.
The company was licensed by the Securities and Exchange Commission, SEC, as a self- regulatory organisation, SRO, to organise and provide oversight on the Over-the-Counter, OTC, market in the Nigerian capital market in November 2012.
FMDQ OTC will provide issuers, investors and end-users of financial market products with world-class market governance for capital transfer.
The subscribers to the company’s shares are banks, discount houses and the Nigerian Stock Exchange through its subsidiary NSE Consult.
FMDQ OTC will organise the OTC market and standardise the operations, practice and business conduct of its members and their representatives with a view to protecting investors and the public interest.
The immediate focus is the Nigeria inter-bank markets – money, repo, foreign exchange, treasury bills and bonds
The establishment of FMDQ OTC would address governance structure and single operating platform, aggregating pre-trade and post-trade data to promote transparency. FMDQ OTC would also promote international best practices, including Straight-Through-Processing, STP, in clearing and settlement arrangements for OTC products, said the chairman, Aigboje Aig-Imoukhuede.
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