Cleared Naira-Settled Non-Deliverable Forwards (“Cleared USD/NGN NDFs”)
The Cleared Naira-Settled Non-Deliverable Forwards product was introduced in 2016, with the Central Bank of Nigeria as the pioneer seller of the Cleared USD/NGN NDFs contracts. The apex bank currently offers non-standardised amounts for different tenors, from thirteen (13) months through to sixty (60) months to Authorised Dealers, who in turn offer same to customers with trade-backed transactions or trade same with other Authorised Dealers; settling on bespoke maturity dates.
Cleared Naira-Settled Non-Deliverable Forwards are non-deliverable Forwards (i.e. contracts where parties agree to an exchange rate for a predetermined date in the future, without the obligation to deliver the underlying US Dollar (notional amount) on the maturity/settlement date). Upon maturity, both parties are assumed to have transacted at the Spot FX market rate. Cleared USD/NGN NDFs contracts are cash-settled in Naira and the differential between the contract rate and the NAFEX (Nigerian Autonomous Foreign Exchange Fixing) rate on the maturity day determines the settlement amount, i.e. the gain/loss inherent in the contract.
For more information on the Cleared Naira-Settled Non-Deliverable Forwards products, kindly refer to relevant documentation provided via the links in the table below:
Market Regulation and Requirements
| Title | Size | Download |
|---|---|---|
| OTC FX Futures Market Operational Standards | 327.02 KB | DownloadPreview |
| Operational Modalities of the Naira Settled OTC FX Futures Market | 311.30 KB | DownloadPreview |
| Title | Size | Download |
|---|---|---|
| Initial-Margin-Rates-for-Naira-settled-OTC-FX-Futures-Contracts | 116.27 KB | DownloadPreview |
| Naira-Settled Non-Deliverable Forwards (NDFs) Settlement Calendar | 156.29 KB | DownloadPreview |
Other OTC Derivatives – FMDQ Exchange also provides relevant platform for the reporting of other OTC derivatives such as FX Forward, FX Swaps and other derivatives.
For more data and information on OTC Derivatives products traded/reported on FMDQ Exchange, kindly follow the link to our data and information portal https://emarkets.fmdqgroup.com or contact our Derivatives Business Group for more information.