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As a debt capital-focused securities exchange, FMDQ also provides a robust platform for the listing of Mutual and Exchange-Traded Funds.
Mutual Funds are investment vehicles operated by money managers, which typically pools funds from investors for the purpose of investing the funds in securities such as stocks, bonds, and money market instruments. They are also classified according to the types of securities invested in. Fixed Income Mutual Funds, which are focused primarily on investments in government and corporate bonds; and Money Market Mutual Funds (or Money Market Funds) which are focused on investments in short-term debt securities such as treasury bills and commercial papers, are permitted for listing and trading on FMDQ, in line with the provisions of the FMDQ Bond Listing and Quotation Rules.
Exchange Traded Funds (ETFs) are marketable securities that track an index, a commodity, bond, or a basket of assets. Unlike mutual funds, ETFs are traded on an exchange, and experience price changes throughout the day as they are bought and sold; typically trading close to its Net Asset Value over the course of the day. ETFs are also permitted for listing and trading on FMDQ.In addition to an efficient listings process, competitive pricing, and access to a broad investor base, FMDQ provides governance and market oversight for funds listed on its platform. As an information repository for the Nigerian debt capital market, the OTC Exchange improves transparency and information disclosure by making available, through its website and information portal/knowledge centre (FMDQ e-Markets), key information on all Funds listed on its platform. Such information includes the Fund prospectus, Net Asset Value of the Fund as well as financial statements and relevant information about the Fund Manager, among others, thereby enhancing the credibility of the Fund and providing investors additional comfort.