The FMDQ Securities Exchange Limited has said that it is working towards the launch of Exchange Traded Derivative (ETD) products that will enable the government raise funds at a cheaper cost.
The Head, Market Architecture, FMDQ Securities Exchange Limited, Mr Oluwaseun Afolabi, disclosed this in Lagos while interacting with Capital Market Correspondents.
Afolabi said the exchange was also working towards ETD products referencing sovereign securities such as the Federal Government of Nigeria Bonds and Treasury Bills to aid hedging and risk management by investors in these securities.
On how the FMDQ has helped in deepening the Nigerian debt market, Afolabi said that the company in its capacity as a market organiser and self-regulatory organisation, has over the years pioneered and led various initiatives geared at deepening and promoting liquidity in the Nigerian debt markets.
These initiatives, he said, range from those targeted at spurring activity in the primary markets for money market debt securities such as Commercial Papers (CPs) and facilitating the issuance of short-term bonds.
Afolabi pointed out that the company engage in secondary market initiatives such as market making, securities valuation, benchmark development and administration and expansion of the bouquet of debt securities and other financial instruments onboarded on the Exchange.
Speaking on the success and acceptability of CPs in the country, Afolabi noted that CPs have become acceptable in the Nigerian financial market as evidenced by the milestones recorded by FMDQ Exchange in the Nigerian CP market.
“Since the entry of FMDQ Exchange into the CP market, the Nigerian CP market has grown from near zero levels about a decade ago in terms of capital raised to a market where about N3.17 trillion has been raised via CP issuances since the entry of FMDQ Exchange to date.
