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$7.60bn Worth of OTC FX Futures Trades So Far, as 14th Futures Contract Settles on FMDQ Posted on: August 18, 2017

$7.60bn Worth of OTC FX Futures Trades So Far, as 14th Futures Contract Settles on FMDQ.

Having ceased trading on August 8, 2017, in line with the OTC FX Futures Market Operational Standards, the 14th OTC FX Futures contract, NGUS AUG 16 2017, with notional amount $488.33mm, matured and settled on FMDQ OTC Securities Exchange on Wednesday, August 16, 2017. This brings the total value of contracts so far matured on FMDQ, the OTC FX Futures Exchange, to $5.44bn, with a total of about $7.60bn worth of OTC FX Futures contracts traded so far.

The contract was valued against the NAFEX (Nigerian Autonomous Foreign Exchange Rate Fixing) as published by FMDQ on August 16, 2017, with the associated clearing/settlement effected by the Nigeria Inter-Bank Settlement System PLC (NIBSS), in line with the Operational Standards.

The Central Bank of Nigeria has continued to display its determination to maintain market stability and create an environment conducive for foreign and Nigerian portfolio investors. Consistent with its treatment for the previous maturities in the last one year (July 2016 – July 2017), the apex bank introduced a new contract, NGUS AUG 29 2018, for $1.00bn at $/₦364.00 to replace the matured contract. The CBN also refreshed its quotes on the existing 1- to 11-month contracts. These OTC FX Futures quotes are available daily on FMDQ’s website and published daily on the FMDQ Twitter page.

The OTC FX Futures market, among other commendable results, has paved the way for businesses, corporates and governments to effectively hedge their FX risk, by providing the much-needed certainty to enhance and ensure effective and efficient business planning, in order to keep operations going, amidst any future volatility in the FX market.