{"id":1036499,"date":"2023-07-12T12:29:20","date_gmt":"2023-07-12T12:29:20","guid":{"rendered":"https:\/\/fmdqgroup.com\/clear\/fmdq-events\/fmdq-exchange-traded-derivatives-market-goes-live\/"},"modified":"2023-07-12T12:29:20","modified_gmt":"2023-07-12T12:29:20","slug":"fmdq-exchange-traded-derivatives-market-goes-live","status":"publish","type":"fmdq-events","link":"https:\/\/fmdqgroup.com\/clear\/fmdq-events\/fmdq-exchange-traded-derivatives-market-goes-live\/","title":{"rendered":"FMDQ Exchange-Traded Derivatives Market Goes Live"},"content":{"rendered":"
\n

Today marks yet another significant milestone in the Nigerian financial markets as FMDQ Securities Exchange Limited and FMDQ Clear Limited, wholly owned subsidiaries of FMDQ Group PLC, with the support of the Securities and Exchange Commission, the Central Bank of Nigeria, and the Debt Management Office, Nigeria, go live with the introduction of the dynamic FMDQ Exchange-Traded Derivatives (ETD) Market, making it possible for market stakeholders \u2013 corporates, foreign & domestic investors and pension fund administrators \u2013 to hedge inherent financial market risks in their operational and investment activities, providing an opportunity to convert risk to financial security, which in turn will help attract capital flows, reduce cost of capital, promote market liquidity, and ultimately deepen the Nigerian financial markets.<\/p>\n

The long-awaited FMDQ ETD market, which is geared towards transforming risk to certainty, in an unprecedented move, brings about the integration of the banking sector and capital market in Nigeria. Driven by FMDQ Securities Exchange Limited (FMDQ Exchange or the Exchange), Nigeria\u2019s largest Exchange by Turnover, in collaboration with FMDQ Clear Limited (FMDQ Clear or the Central Counterparty ([CCP]), Nigeria\u2019s foremost CCP, the FMDQ ETD Market, boasts of participation from ten (10) pioneer Deposit Money Banks and five (5) pioneer non-bank financial institutions, all positioned to change the landscape of the Nigerian financial markets in the near-to-medium term. With the CCP\u2019s extensive risk management structures and robust financial resources \u2013 c. $20mm in FMDQ Clear\u2019s proprietary Default Resolution Reserve, and over $12mm from Members\u2019 contributions to the CCP\u2019s default waterfall \u2013 the players will be able to leverage the financial capacity of the very big players in a market structure that transfers counterparty risks to a credible world-class CCP, FMDQ Clear.<\/p>\n

In support of the ETD Market, the three (3) pioneer General Clearing Members (GCMs) \u2013 Access Bank PLC, Zenith Bank PLC, and Stanbic IBTC Bank PLC \u2013 who are capable of clearing transactions for their proprietary positions and those of other Trading Members and clients, will share mutualised responsibility as Members of the CCP, and clear their proprietary positions, as well as twelve (12) Derivatives Trading Members, bringing the pioneer Trading Members in the ETD Market to fifteen (15) \u2013 Meristem Stockbrokers Limited, CardinalStone Securities Limited, Chapel Hill Denham Securities Limited, Coronation Merchant Bank Limited, Union Bank of Nigeria PLC, Parthian Securities Limited, DLM Securities Limited, FBNQuest Merchant Bank Limited, First City Monument Bank Limited, Fidelity
\nBank PLC, FSDH Merchant Bank Limited, Greenwich Merchant Bank Limited, Access Bank PLC, Zenith Bank PLC and Stanbic IBTC Bank PLC.<\/p>\n

The ETD Market goes live with two (2) pioneer products \u2013 the FGN Bond Futures and USD-NGN Non-Deliverable FX Futures \u2013 which will be traded and cleared on world-class FMDQ ETD systems, the FMDQ Q-ex Trading System and FMDQ Q-ex Clearing System, respectively. The development of this ETD Market in Nigeria has long been a topic of interest amongst capital market operators, regulators, and market participants, as the Market directly plays a vital role in financial system stability and greatly contributes to various aspects of the economy as a whole. Leveraging on its aspiration to transform the Nigerian financial markets to be globally competitive, operationally excellent, liquid, and diverse, in line with the FMDQ \u2018GOLD\u2019 Agenda, the pre-eminence of the FMDQ ETD Market cannot be overemphasised as it ushers the actualisation of the panacea that will enable the development of a thriving financial sector, like other developed economies, positioning it for revolutionary growth in potentially colossal proportions.<\/p>\n

The visionary pioneer Members of this FMDQ ETD Market, who have positioned themselves to take advantage of the emerging novel segment of the financial markets, must be commended for their instrumental role in driving the activation of this Market and the broader Nigerian financial markets. These pioneer Members have demonstrated their commitment as catalysts in fostering sustained growth and development in the Country\u2019s financial landscape.<\/p>\n

FMDQ Group is Africa\u2019s first vertically integrated financial market infrastructure (FMI) group, strategically positioned to provide registration, listing, quotation and noting services; integrated trading, clearing & central counterparty, settlement, and risk management for financial market transactions; depository of securities, as well as data and information services, across the debt capital, foreign exchange, equity and derivatives markets, through its wholly owned subsidiaries \u2013 FMDQ Exchange, FMDQ Clear, FMDQ Depository Limited and FMDQ Private Markets Limited. As a sustainability-focused FMI group, FMDQ Group, through FMDQ Exchange, operates Africa\u2019s premier Green Exchange \u2013 FMDQ Green Exchange \u2013 positioned to lead the transition towards a sustainable future.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Today marks yet another significant milestone in the Nigerian financial markets as FMDQ Securities Exchange Limited and FMDQ Clear Limited, wholly owned subsidiaries of FMDQ Group PLC, with the support of the Securities and Exchange Commission, the Central Bank of Nigeria, and the Debt Management Office, Nigeria, go live with the introduction of the dynamic …<\/p>\n

FMDQ Exchange-Traded Derivatives Market Goes Live<\/span> Read More »<\/a><\/p>\n","protected":false},"featured_media":0,"parent":0,"template":"","meta":{"inline_featured_image":false,"site-sidebar-layout":"default","site-content-layout":"default","ast-global-header-display":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":""},"class_list":["post-1036499","fmdq-events","type-fmdq-events","status-publish","hentry"],"yoast_head":"\nFMDQ Exchange-Traded Derivatives Market Goes Live | FMDQ Clear<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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