FMDQ OTC Plc, which runs the platform for the secondary trading of fixed income securities and currency has continued to attract high patronage recording N47.023 trillion worth of transactions from January to April 2015. The transactions showed 43 per cent growth over the N32.761 trillion recorded in the first three months of the year. The performance also indicates a 30 per cent improvement in the month of April compared to the N10.9 trillion monthly average recorded in the first three months of the year. According to data obtained by THISDAY, the repurchase agreements/buy-back securities maintained the lead, accounting for N12.857 trillion or 27 per cent. Those securities had recorded N9.033 trillion in the first quarter of the year.
Treasury bills occupied the second position with N12.564 trillion, up from N8.439 trillion recorded in the first quarter. Foreign exchange (FX) recorded a turnover of N10.633 trillion, showing an increase from N8.420 trillion posted in the first three months of the year.
Unsecured placements accounted for N4.675 trillion, up from N2.669 trillion. FX derivatives recorded N3.243 trillion. FGN bonds traded N2.962 trillion compared with N1.959 trillion as at end of March. Money market derivatives recorded N49.485 billion,, just as Eurobonds accounted for N30.13 billion. Other bonds accounted for N8.257 billion.
Market analysts said the four months performance showed that efforts by the board and management of FMDQ OTC Plc to reposition the fixed income securities and currency market are paying off already.
Licensed by the Securities and Exchange Commission(SEC), FMDQ was officially launched in November 2013 with a mandate to work with stakeholders to develop the Nigerian OTC market. The platform is improving market transparency in the OTC market with its trading systems, price discovery applications among others.
FMDQ last month its third annual general meeting and reported a total revenue of N1.75 billion for the financial year ended December 31, 2014.
Chairman of the company, Dr Sarah Alade said it recorded a profit before tax of N708.52 million in contrast with a loss before tax of N133.36 million declared in 2013.
Its profit after tax stood at N547.93 million against a loss after tax of N133.35 billion achieved in the corresponding period of 2013. Shareholders' funds rose to N1.09 billion compared with N541.29 million recorded in 2013.
According to her, the company would focus on product and market development initiatives to promote price discovery on the platform and enhance transparency in the market.
She assured investors that the company was poised to reposition the Nigerian fixed income and currency market to become more globally competitive and support the nation’s economy.
She said that the current board members were committed to building on the progress made by its predecessors in becoming number one in Africa in the fixed income and currency markets by 2019.
Managing Director of FMDQ, Mr. Bola Onadele said the company continued to focus on key business development initiatives to improve market liquidity, transparency, credibility and integrity to improve revenue.
Onadele said that the primary goal of the company in the next three years was development of the nation's financial market.
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