Nigeria’s FMDQ clear becomes member of global association of CCP
FMDQ Clear Limited, Nigeria’s Premier Central Counterparty (CCP) and a wholly-owned subsidiary of FMDQ Holdings Plc (FMDQ Group), has been admitted to the Global Association of Central Counterparties (CCP12), representing 41 members who operate more than 60 individual CCPs globally as an observer member.
The development, which is in line with the exchange’s vision of becoming a globally accepted CCP by 2025, took place at the just concluded monthly CCP12 Executive Meeting held last week.
FMDQ Clear, was registered as a CCP by the Securities and Exchange Commission (SEC), to provide post-trade services that will enhance the integrity of the financial market and eliminate the inherent counterparty risks therein while facilitating settlement finality, delivering capital and cost efficiencies, and de-risking the Nigerian financial market.
According to the exchange, FMDQ Clear recognises the importance of forging alliances with critical financial market associations, both domestic and international, to enhance market development, capacity building and knowledge sharing opportunities and better equipped to foster growth and development in the Nigerian financial market.
CCP12 promotes effective, practical, and appropriate risk management and operational standards for CCPs to ensure the safety and efficiency of the financial markets it represents.
It also leads and assesses global regulatory and industry initiatives that concern CCPs to form consensus views while actively engaging with regulatory agencies and industry constituents through consultation responses, forum discussions and position papers.
Reacting to the development, the Chairman, CCP12, Kevin McClear and Chief Executive Officer, CCP12, Teo Floor, stated: “We are delighted to welcome FMDQ Clear to our global community. Their ongoing development signals the value of central counterparty clearing across a variety of markets, and we look forward to a successful collaboration”.
Concerning the membership admission, Managing Director, FMDQ Clear, Ayodele Onawunmi, said the company is excited to become a member of CCP12, a comity of world-class and vibrant CCPs, which provides a platform for global collaboration, engagements and knowledge sharing that will support the development of the Nigerian post-trade services value chain towards global standards.
CHe said the acceptance as an observer member of the global body of CCPs is a testament to its commitment to become a globally accepted CCP by 2025.