FMDQ Launches Dealing Specialists’ Membership For Fixed Income Trading | Independent Newspapers Limited
Newsletter subscribe

Business, Money Market

FMDQ Launches Dealing Specialists’ Membership For Fixed Income Trading

Posted: Mar 22, 2016 at 3:00 am   /   by   /   comments (0)

FMDQ OTC Securities Exchange has launched Dealing Member Specialists (DMSs) category of membership for non-bank financial institutions (NBFIs) to act as market makers in the FMDQ fixed income market.

This is stated in a statement issued by the company in Lagos on Monday and made available to newsmen.

The statement said that participation of the NBFIs, typically the investment banking firms and securities dealing firms, would generate additional liquidity to the Nigerian fixed income market.

It added that they would serve as an avenue for effective and efficient retail participation in the fixed income market.

“This unique initiative, where fixed income dealers of NBFIs can trade bonds, commercial papers (CPs) and treasury bills (T.bills) was birthed from the identification of an innovative opportunity for the much needed participation of NBFIs in the Nigerian fixed income market,” it said.

The statement explained that the DMS market would operate like the existing FMDQ dealing member (banks) market with a view to the full integration of the dealing member (banks) and dealing member (specialists) markets at some point in the future.

The company said that the new membership category would contribute to the development of the Nigerian DCM and indeed leverage on this potentially highly beneficial business opportunity.

“FMDQ currently has 23 institutions that have successfully completed the first phase of the membership application process and prudently positioning to take advantage of this opportunity,” said the statement.

It also said that a robust web-based proprietary trading system, FMDQ Q-Deal had been deployed to facilitate the trading of fixed income securities by the DMSs as part of the implementation exercise for the project roll-out.

“With integrated multi-trading style functionalities, the Q-Deal features anonymous and bilateral trading capabilities and enhances accessibility, price formation, pre- & post-trade price discovery and market surveillance,” it said.

The statement stated that the company would hold a two-day simulation workshop on March 23 and 24 for the 23 institutions that successfully completed the initial membership application to become DMSs.

“The simulation workshop is a crucial step in the implementation process as it provides participants with a trial-run of the trading system and how the DMS market will operate to ensure a seamless activation of the market at go-live,” it said.

The company, with a vision of becoming number one in Africa in the fixed income and currency markets by 2019, is committed to the development of the Nigerian financial markets.