Stories by Kayode Tokede
A report by FMDQ Securities has disclosed that three financial institutions, Stanbic IBTC Bank, Access Bank Plc and United Bank for Africa Plc (UBA) traded N44.90 trillion in the foreign exchange market turnover in seven months.
According to FMDQ report, top 10 leading member (banks) accounted for 76.23 per cent or N75.85 trillion of the overall turnover in the market, with the top three accounting for 58.13 per cent or N44.90 trillion) of this subsection of the market. Stanbic IBTC Bank, Access Bank and United Bank for Africa were the leaders in the value traded for the overall over-the-counter (OTC) market, ranking 1st, 2nd and 3rd respectively.
By ranking, Standard Chartered Bank Nigeria Limited came 4th, followed by Ecobank Nigeria Limited, Citibank Nigeria Limited, ranked 5th and 6th respectively.
In addition, Guaranty Trust Bank Plc, Union Bank of Nigeria Plc, Zenith Bank and First Bank Of Nigeria Limited came 7th, 8th, 9th and 10th position respectively.
The report stated that total turnover for the January to July 2018 period amounted to N99.49 trillion.
The key breakdown revealed that N23.77 trillion Foreign Exchange (FX) was traded on the FMDQ OTC market turnover between January and July, while N13.04 trillion was traded on the foreign exchange derivatives market.
On Treasury Bills, a total of N40.19 trillion was traded between January and July 2018.
The report by FMDQ OTC stated that, “Trading activities in Treasury bills contributed the largest to overall turnover, accounting for 40.40per cent of the market. FX market transactions (Spot FX and FX Derivatives) accounted for 37.00per cent whilst the Repos/Buy-Backs product category accounted for 15.39per cent of overall market turnover. Bonds and Unsecured Placements & Takings, which contributed the least to overall market turnover, accounted for 6.65per cent and 0.54 per cent respectively.
The report stated that FMDQ has accomplished a full and clear revival of the Commercial Paper (CP) market with registered CP Programmes on the FMDQ Platform now well above N1.00 trillion.
The month of August saw key activities in the CP quotations space on the OTC Exchange, wherein theN100.00 billion CP Programmes of Union Bank of Nigeria PLC and Flour Mills of Nigeria of PLC respectively, were registered on the OTC Exchange’s platform.
As these institutions and a host of others continue to effectively and sustainably meet their funding needs, as well as contribute to the development of the nation’s debt markets, FMDQ continues to take crucial steps, in collaboration with market stakeholders, towards promoting transparency, governance, integrity and efficiency in the Nigerian CP market.