In order to transform the markets through product innovation and market development, FMDQ Exchange has varying product offerings, geared towards deepening the fixed income, foreign exchange, derivatives and equity markets, and managing the volatility in the markets. Products listed, quoted and traded in the FMDQ Exchange’s markets include:
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Bonds
Bonds represent a long-term debt obligation of an entity. Investors in bonds, effectively lend funds to the issuer of the bond for a defined period of time to meet their financing needs. Like most loans or lending arrangements, bonds are interest-bearing securities issued at fixed or variable interest rates, and the interest is paid either in the form of a periodic coupon throughout the tenor of the bond or as a discount at the issuance of the bond. By issuing a bond, the issuer (borrower) commits to make both interest and principal payments to the investors (lenders).
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Commercial Papers
Commercial Papers (CPs) are short-term debt obligations of corporations. They can be issued for tenors of up to 270 days in the Nigerian financial markets. Like Treasury Bills, they are typically issued at a discount and redeemed at par (face value amount) upon maturity. They are also typically issued by large corporations with good credit ratings and history. CPs are quoted and traded/reported on relevant platforms of FMDQ Exchange.
For more information on all (outstanding and matured) CPs quoted on FMDQ Exchange, kindly follow the link below to access our
Quoted Commercial Papers Status Report. -
Derivatives
Derivatives are financial market products whose values are derived from one or more underlying assets or sets of assets, which can be bonds, stocks, commodities, precious metals, market indices, interest rates, etc. As a risk management tool, derivatives present a useful risk management tool for implementing risk mitigation or hedging strategies against financial risks, while also representing an alternative investment asset class, useful for pursuing cost-friendly diversification and investment strategies.
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Foreign Exchange
The Foreign Exchange (FX) market is a market for trading and exchanging any currency pair. The value of one currency in terms of another currency is known as the “Exchange Rate”. Exchange rate movements are determined by the demand and supply for the relevant currencies in any currency pair over time, based on trade value, capital flows and market expectations.
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Equities
Equity securities (“Stocks” or “Shares” ) represent a stake in the ownership of a company. Unlike, debt or fixed income securities, they do not have a tenor or maturity date, hence investors in the stocks/shares of a company hold an ownership stake in the company for as long as the company exists or until their stake is sold to another investor.
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Treasury Bills
Treasury bills (T. bills) are short-term sovereign debt securities maturing in 364 days or less. They are sold at a discount and redeemed at par (face value amount). These bills are by nature, the most liquid money market securities and are backed by the guarantee of the government of a sovereign nation.
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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;
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Market Connectivity
FMDQ Exchange provides tailored proprietary systems and other relevant financial markets structures to support and boost trading and connectivity of market participants … Learn More
Market Notice
Market Notices are written communications issued periodically and specific to information on FMDQ’s products and markets’ issues, ranging from new product releases, amendments to existing … Learn More
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Market Rules -
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Corporate Action Calendar -
FMDQ Market Holidays