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FMDQ OTC Securities Exchange records N7.35 trillion transactions in January


The FMDQ OTC Securities Exchange recorded transactions worth N7.35 trillion in January 2016 in fixed income and currency markets, the News Agency of Nigeria (NAN) reports.

Market turnover report from the company, according to the report obtained by NAN in Lagos, showed that the figure was a decrease of N80.23 billion over the figure posted in December 2015.

A breakdown indicated that activities in the Foreign Exchange contributed 28.2 per cent to the turnover trailed by treasury bills (T.bills) which accounted for 28.16 per cent.

It was followed by secured market transactions (Repos/Buy-Backs) which accounted for 24.30 per cent of total turnover in the month, while Federal Government Bonds contributed 15.79 per cent.

NAN reports that unsecured placements/takings accounted for 3.26 per cent of the total turnover.

Further analysis showed FX transactions stood at 8.92 billion dollars, a decrease of 1.97 billion dollars or 18.1 per cent compared with the value traded in December, with an average daily turnover of 0.45 billion dollars.

It noted that Year -on -Year basis, FX transactions recorded 11.26 billion dollars, indicating a decline of 43.19 per cent, due mostly to the change in Interbank trading style to order based.

The report also showed that the member-member trades increased by 78.68million dollars due to an increase in spot transactions and settled at 1.22 billion dollars.

On the other hand, transactions in the member-client trade category recorded a decline of 2.05 billion dollars to end the month at 7.70 billion dollars.

The fixed income market experienced increased activity in the month recording a turnover of N3.23 trillion, representing a growth of 23.4 per cent above the preceding month’s performance.

NAN also reports that T.bills accounted for 64 per cent of the fixed income turnover, recording N2.07 trillion which is 6.0 per cent higher than the amount recorded in December.

NAN reports that FMDQ was officially launched in November 2013 with a mandate to work with stakeholders to develop the Nigerian OTC market.