Nigerian T-Bills lead other securities as turnover comprises 47% FMDQ deals

Investors in the Nigerian over-the-counter (OTC) market traded government treasury bills T-bills valued at N25.85 trillion from January to May 2017, 47.22 per cent of the market’s total turnover, data from the Market Turnover Report from FMDQ has shown.

Total turnover secondary market transactions in the OTC market stood at N54.75 trillion for the five months ended May 2017. The turnover was recorded in transactions that were completed in 104 business days. Average daily turnover for the period was N526.43 billion.

FMDQ is the organiser of Nigerian OTC markets and publishes monthly turnover figures across all the products traded on its platform as it fulfils its mandate of making the OTC market transparent, excluding primary market auctions in T-bills, bonds and foreign exchange.

The data for the report were collated from the weekly trade data submitted by FMDQ dealing members, representing trades executed among dealing members, dealing members & clients, and dealing members & the Central Bank of Nigeria (CBN).

January – May 2017 OTC Market Turnover Report
	(₦’mm)	Percentage
Foreign Exchange	4,675,640.00	9%
Foreign Exchange Derivatives	6,828,545.00	12%
Treasury Bills	25,852,453.00	47.22%
FGN Bonds	4,567,987.00	8%
Other Bonds*	1,631.00	0%
Eurobonds	46,157.00	0%
Repurchase Agreements/Buy-Backs	12,219,340.00	22%
Unsecured Placements/Takings	542,689.00	1%
Money Market Derivatives	14,400.00	0%
Commercial Papers	–
Total	54,748,842.00	100%

Source: FMDQ, BusinessDay C&M Analytics

OTC markets are markets where financial instruments such as currencies, stocks and commodities are traded directly between two parties without the supervision of a security exchange.

Repurchase agreements were the next most traded instrument turnover of up to N12.22 trillion, 22 per cent of the market turnover.

Turnover of deals in foreign currency exchange and foreign exchange derivatives stood at N11.50 trillion, which was 21 per cent of the total turnover.

The FMDQ OTC Market Turnover Report shows the turnover on all products traded on the FMDQ secondary market including foreign exchange (FX), treasury bills (T-bills), money market (repurchase agreements, buy-backs and unsecured placements/takings) and bonds (FGN Bonds and Other Bonds), FX Derivatives and Money Market Derivatives.

OTC market turnover for May rose 7.90 per cent to N9.49 trillion; it had slumped 34.68 per cent from N13.47 trillion in March to N8.80 trillion in April.  Market turnover rose highest in February, having climbed to N12.15 trillion from N10.84 trillion in January.

 

INNOCENT UNAH