Chief Executive Officer of FMDQ, Bola Onadele
FMDQ OTC Securities Exchange, by means of the Central Bank of Nigeria (CBN), and the Financial Markets Dealers’ Association (FMDA), have established Straight-Through-Processing (STP) for the settlement of fixed income trades.
With the help of the CBN and the FMDQ Dealing Member (Banks), FMDQ, on Friday, efficiently deployed a fixed income market STP settlement solution by means of its proprietary market system – FMDQ’s Q-ex – a customised totally built-in multi- asset trading system with attendant post-trade companies capabilities.
FMDQ’s Q-ex has been built-in with the CBN’s Scripless Securities Settlement System (S4) to offer STP capabilities for environment friendly settlement within the fixed income market, bettering the effectivity of the trading, reporting and settlement processes, while additional creating, in no small measure, the Nigerian monetary markets.
As said by a assertion by the FMDQ, Q-ex supplies an unrivalled means by means of which trades executed by its members (at the moment the Dealing Member (Banks), are reported and subsequently settled, with minimal to no human intervention, by way of the respective channels.
The OTC Securities Exchange defined that the deployment of the FMDQ Q-ex Settlement Solution operated by FMDQ Clear Limited, a wholly-owned subsidiary of FMDQ, will primarily streamline enterprise processes to scale back friction alongside the fixed income trades settlement value-chain, boost productiveness of the market contributors and promote effectivity of post-trade companies.
“It might be argued that the Nigerian fixed income market has not been acting at its optimum, because the market has been marked with bouts of low productiveness, inefficiency and invariably, settlement defaults, all of which might possible have marred the market’s integrity and considerably lowered investor confidence.
“With integrity being one of many key substances for a profitable market, as adjudged by world counterparts, the achievement of STP within the fixed income market by way of the combination of Q-ex and the CBN’s S4 couldn't have come a second too quickly, as this integration units a clear and sure path for market-wide confidence within the Nigerian fixed income settlement processes, and by extension, the fixed income market, to be restored.
“The integration also makes possible, unparalleled visibility and transparency of the post-trade workflow (settlement obligations, reconciliations etc.) amongst FMDQ Members and their trading counterparties – another must for a successful market.”
As said by the Managing Director/Chief Executive Officer at FMDQ, Bola Onadele, the event of FMDQ’s Q-ex and its subsequent linkage to the CBN’s S4 is without doubt one of the key medium- to long-term initiatives of FMDQ, geared toward making the Nigerian monetary market operationally glorious delivering on the FMDQ’s GOLD Agenda.“With the continued collective efforts of the CBN, the Securities and Exchange Commission and certainly, different key regulators and stakeholders, we at FMDQ, are assured that the potential of our home markets, performing as a catalyst to propel financial progress, shall be realised.
“To build and sustain a well-functioning market, it is hoped that all hands remain on deck even as FMDQ continues to re-affirm its commitment to promote a world-class financial market operating in alignment with international best practices.”