FMDQ contributed in the resuscitation of the Nigerian commercial papers market by providing the requisite governance and structure to a hitherto fragmented market. By enabling processes which guarantee an unrivalled time to market for the short-term securities, issuers of commercial papers find relief through the excellent service experience offered to their issues at FMDQ.
To support the resusitated CP market, we developed the Commercial Paper Quotation Process to:
- Provide a robust platform for the quotation of CPs
- Regulate trading behavior and protect the interests of trading parties
- Further enhance transparency at the short-end of the corporate yield curve, through continuous disclosure of relevant information
Through our efficient platform, we offer a specialised service for the quotation, valuation and trading of Nigerian Treasury Bills, issued under the authority of the Debt Management Office through the Central Bank of Nigeria, to provide short-term funding for the budget deficit of the Federal Government of Nigeria.
FMDQ provides an enabling platform that enhances liquidity, market transparency and global visibility to Nigerian Treasury Bills quoted on the Exchange. This is done through the activities of the FMDQ Dealing Members trading these bills daily on the Exchange’s trading system(s), the FMDQ website, and the FMDQ Daily Quotations List, which offers continuous disclosure of relevant information, thus promoting credibility for these bills and enhancing investor confidence in the securities.
Permitted Trading Status
We admit for quotation, debt securities listed on other recognised exchanges for trading on FMDQ. For a modest fee, these debt securities can be quoted and traded on FMDQ, availing them access to the full complement of the FMDQ quotation service, thereby benefitting from, among others, global visibility, transparency, secondary market liquidity and effective price formation.
The granting of Permitted Trading Status (PTS) to debt securities is carried out based on Rule 185 of the Securities and Exchange Commission (SEC) Rules and Regulation 2013. Pursuant to the provisions of the SEC Rule 185, the circumstance under which a debt security will be granted PTS is that the security must be registered and listed on a recognised securities exchange.