Mandatory Registration and Quotation of Commercial Papers on FMDQ. In line with its commitment to govern and uphold the integrity of the Nigerian financial market, the Central Bank of Nigeria (CBN), on July 12, 2016, released a guideline mandating all deposit money banks in Nigeria, effective July 11, 2016, to deal only in Commercial Papers (CPs) registered and quoted on Authorised Securities Exchanges. Accordingly, banks are therefore prohibited from transacting in CPs that are not quoted or intended for quotation on an Authorised Securities Exchange, in any capacity whatsoever.

Having approved its Commercial Paper Quotation Rules, the CBN has cleared FMDQ OTC Securities Exchange (FMDQ), to act solely in this capacity, at this time, for the registration and quotation of CPs in Nigeria.

FMDQ, as the market organiser for the fixed income and foreign exchange markets, is desirous of building a sustainable CP market in the Nigerian financial market landscape and so promotes credibility for quoted CPs through a highly efficient registration process, and institutes requisite financial market infrastructures in line with global standards, to drive transparency, governance, market oversight, credibility and market liquidity, with a view to protecting stakeholder interests.

Click here to view the CBN Circular

Click here to view the FMDQ Commercial Paper Quotation Rules