FMDQ OTC Plc has said dealing members on its over-the-counter market achieved an overall market turnover of N42.712bn in the first half of the year.

This was contained in a statement made available to our correspondent on Tuesday.

The statement read in part, “In the first half of the year, it said the dealing members achieved an overall OTC market turnover of circa N43tn, with the top 10 dealing members accounting for over 70 per cent of this turnover. These results are very encouraging when compared with data of previous years.”

A breakdown showed that from January to June, Foreign Exchange deals accounted for N13.565tn; Treasury Bills – N12.334tn; FGN Bonds – N3.362tn; other bonds – N137.886bn; repurchase agreements/buy-backs – N10.685tn; and unsecured placement/takings – N2.628tn.

FMDQ OTC also said in the statement that it had commenced the publication of data on the activities of the OTC market to all stakeholders.

According to it, the move is in furtherance to delivering on its goal of providing transparency in the Nigerian over-the-counter market and affirming its stance as a market data repository.

The firm explained that it would use submissions by its dealing members on their dealing activities in the OTC market products such as Foreign Exchange, Treasury bills, bonds and money market in determining the overall OTC market turnover.

According to it, the information will be published in the newspapers and also made available via the ‘Markets’ page of the FMDQ website.

The Business Development Officer at FMDQ, Tumi Sekoni, was quoted as saying the securities exchange was strategically and uniquely positioned to provide timely OTC market data and analytics to all stakeholders; and information on the OTC markets’ global competitiveness.

According to her, with the concerted efforts of the dealing members and FMDQ, the OTC market initiatives are geared to improve liquidity, transparency, governance and efficiency.

She added that the FMDQ market was set to achieve a full-year turnover of N80tn by December 2014.

According to the statement, the FMDQ OTC Market Turnover Report will show the turnover on all products traded on the FMDQ platform – FX, T.Bills, Money Market (Repurchase Agreements and Unsecured Placements/Takings) and Bonds (FGN Bonds and Other Bonds).

It added, “The FX and interest rate plain-vanilla risk management products (derivatives) are becoming significant due to the efforts of FMDQ Dealing Members. “The figures for the derivatives are embedded in the FX and Money Market product categories. FMDQ turnover figures exclude primary market auctions in T.Bills, OMO Bills, Bonds, FX Retail Dutch Auction System and transactions of the Dealing Members at the CBN standing facilities window.”

The OTC turnover data represents trades executed between dealing members; dealing members & clients; Dealing Members & the Central Bank of Nigeria, in FX, T.bills, bonds and money market products.

Punch