FMDQ OTC Market Summary

Total turnover recorded in the Fixed Income and Currency Markets (FIC) for the month of November 2015 was N10.08trn; a N4.50trn (30.60%) decrease MoM and a 19% (N2.49trn) drop YoY.

Activities in the T.bills segment still dominated the market, retaining a market share of 42% of total turnover. FX market contribution to turnover for the month was 17%, recording a total of $10.51bn; inclusive of Member-CBN trades, compared to $12.83bn recorded in October.

Secured market transactions (Repos/Buy-Backs) accounted for 20% of total turnover in November, while FGN bonds’ contribution remained relatively flat at 13%, same as the two previous months.

Activities in Unsecured Placements/Takings contributed 8% to total turnover Stanbic IBTC Bank PLC, Access Bank PLC and United Bank of Africa PLC maintained their positions as the leaders in value traded for the overall over- the-counter (OTC) market, ranking 1st, 2nd and 3rd respectively.

They have a combined market share representing circa 25% of the overall trades executed (buy and sell sides) in the markets.

Keystone Bank Ltd., Rand Merchant Bank Nig. Ltd. and Unity Bank PLC remained at the bottom of the table occupying the 21st, 22nd and 23rd positions respectively. United Bank for Africa PLC, Skye Bank PLC and First Bank of Nig. Ltd., topped trading between Dealing Members for the overall market.

Leaders in the Dealing Member–Client trading category were Stanbic IBTC Bank PLC, Diamond Bank PLC and Access Bank PLC. The leaders in the Dealing Member-CBN trading category were Diamond Bank PLC, Stanbic IBTC Bank PLC and Access Bank PLC

FX Market

Turnover in the FX market for the month settled at $8.54bn; an 18% ($1.89bn) decrease compared to the value recorded in October, with an average daily turnover of $0.42bn.

Member-Member trades decreased by $0.98bn (55.30%), while Member- Client trades also decreased by $0.91bn (10.50%) MoM.

FX Spot and Swap transactions also dipped by 21% ($1.86bn) and 16% ($0.28bn) MoM to record turnovers of $6.94bn and $1.45bn respectively.

The CBN’s exchange rate remained flat at an average value of $/N195.99 within the month, while the inter-bank exchange rate traded at an average rate of $/N197.49, recording a slight depreciation of 19kobo.

A detailed analysis of the FX market revealed that the top three (3) Dealing Members, Diamond Bank PLC, Stanbic IBTC Bank PLC and United Bank for Africa PLC, maintaining the 1st, 2nd and 3rd positions respectively, have a combined FX market share representing circa 46% of the overall trades executed in the market. The Dealing Member-Client trades comprised the bulk of this market share, accounting for 65% of the trades executed.

In the overall FX derivatives market, the top three (3) positions, with a combined market share of circa 63%, were occupied by Stanbic IBTC Bank PLC, Access Bank PLC and Standard Chartered Bank Nig. Ltd. Diamond Bank PLC, occupying 4th place, swapped positions with Standard Chartered Bank Nig Ltd.

The Dealing Member-Client trades, accounted for the bulk of these trades (76%). In the FX swaps market, Stanbic IBTC Bank PLC maintained 1st position while Access Bank PLC and Diamond Bank PLC swapped 2nd and 3rd positions, although maintaining their places among the top three (3); and in the FX forwards market, the 1st, 2nd and 3rd positions were maintained by Access Bank PLC, Standard Chartered Bank Nig Ltd and Stanbic IBTC Bank PLC respectively.