FMDQ OTC Securities Exchange recorded a turnover of ₦130.17 trillion in the first 11 months of 2017, according to provisional data provided by the over-the-counter platform for debt securities.
The turnover included all products traded on the FMDQ secondary market including foreign exchange, treasury bills, sovereign bonds, other bonds issued by agency, sub-national, corporate and supranational institutions, Eurobonds and money market instruments such as repos and buy-backs and unsecured placements and takings. The turnover excluded primary market auctions in treasury bill and bonds.
The data, collated from the weekly trade data submissions by FMDQ dealing-member banks, represented trades executed amongst the dealing-member banks, dealing-member banks clients and dealing-member banks and Central Bank of Nigeria (CBN).
With average exchange rate of ₦317.24 per Dollar, the 11-month turnover stood at $410.32 billion. Average daily turnover stood at ₦565.96 billion or $1.78 billion during the 230-day trading session.
A breakdown of the turnover showed that treasury bills accounted for the largest turnover of ₦56.14 trillion. Repurchase agreements and buy-backs followed with the second largest turnover with ₦29.16 trillion.
Others included foreign exchange ₦18.70 trillion, foreign exchange derivatives, ₦15.51 trillion; sovereign bonds, ₦9.04 trillion; other bonds ₦27.85 billion; Eurobonds ₦82.14 billion; unsecured placements and takings ₦1.49 trillion and money market derivatives, which recorded a turnover of ₦22.9 billion.
Also, 2017 saw a steady flow of transactions and activities in the Naira-settled OTC foreign exchange (FX) futures market. The market, which was borne out of the desire to address the need for risk management in the Nigerian FX market has continued to show appreciable potential as an effective hedging product for investors, businesses and government institutions alike.
By December 7, 2017, $10.38 billion worth of OTC FX Futures contracts have traded so far with the CBN remaining steadfast in its commitment to ensuring the success of the market. As it has been the norm for 17 maturities on FMDQ, the 18th OTC FX Futures contract matured and settled successfully on December 27, 2017.
Having ceased trading on December 20, 2017, in line with the OTC FX Futures market operational standards, the 18th OTC FX Futures contract, NGUS DEC 27 2017, with notional amount $499.20 million, matured and settled on FMDQ. This brings the total value of contracts so far matured on FMDQ to $7.35 billion.
A new contract, NGUS DEC 26 2018, for $1.00 billion at $/N362.84 has been introduced by the CBN to replace the matured contract.