OTC market records N112.9b turnover in September

The Over-The-Counter (OTC) market recorded a turnover of N112.91 billion at the end of September 2015.

According to a report released by FMDQ OTC Plc, the volume recorded represents 0.97 per cent drop from the value recorded in August.

Turnover in the FX market settled at N2.13trn; N354.82bn or 14per cent less than the value recorded in August.

The report stated that bullish sentiments prevailed in the fixed income market as yields trended downwards across tenors with the exception of 3M and 15Y benchmark securities which inched upwards.

On aggregate, the yield curve was down 145 basis points. Total trades in the fixed income market came to 567,733; 15per cent below the value recorded in August.

It added that as liquidity conditions eased, money market rates averaged 12.87per cent for the month.
 
To further develop and deepen the domestic debt market, FMDQ OTC Plc, recvently, listed the Nigeria Mortgage Refinance Company Plc (NMRC) ₦8b series 1, 15-Year fixed rate bond under a ₦140,000,000,000.00 Medium-Term Note Programme on its platform.
  
This follows the listing of an outstanding N4.8 trillion Federal Government of Nigeria Bonds and quotation of N2.8 trillion Nigeria Treasury Bills (NTB) the listings of the N30.5b UBA Bond and N15.54b Stanbic IBTC Bond on the platform.
      
The Chief Executive Officer of FMDQ, Bola Onadele, explained that the issuance of this bond by NMRC and subsequent listing on FMDQ, mark essential steps towards development of both the corporate bond market and the Nigerian housing market through the creation of long term funding for mortgage financing.
  
The listing, according to him, would also help in creating liquidity for the instruments, providing price formation for the issuance of new bonds, as well as fostering market transparency.
  
He added that FMDQ would provide the necessary secondary market platform for the bonds to thrive and by extension ensuring success of the Nigerian primary and secondary mortgage markets.
   
The securities exchange shall provide continuous information disclosure on bonds listed on the platform to include price/value data and detailed issuers’/issue information to stakeholders via the ‘Listings & Quotations’ page on FMDQ website.
 
The NMRC bond would be included on the FMDQ-Bloomberg E-Bond Trading System (E-Bond) and also on the FMDQ website, providing issuers, investors, dealers, regulators and the general public with the relevant information for improved price discovery and transparency.