The first four months of the year have been a delight for Financial Markets Dealers Quotations Over-the-Counter (FMDQ OTC) Securities exchange as they recorded total turnover of N79.6 trillion. The company is on track to outperform the FY turnover of 2018 of N182.86 trillion if they can maintain the pace of their transactions.
Last year, the market turnover of the exchange hit an all-time high of N182.86tn from the N142.03tn recorded in 2017, as aggregate transactions in the fixed income and currency market increased by 28.75 per cent. History seems to be on track to repeat itself as year-on-year market turnover is up by a whopping 40 percent. Turnover in the first four months of 2018 was N54.86 trillion as against N79.6 trillion turnover reported from January to April 2019.
According to the FMDQ OTC Market Turnover Report, trading activities in FX (Spot FX and FX Derivatives) contributed the largest to overall turnover, accounting for 37.99 percent of the market. T.bills transactions accounted for 37.60 percent, whilst Repurchase Agreements (Repos)/Buy-Backs product categories accounted for 18.85 percent, and Bonds, Unsecured Placements & Takings and Money Market Derivatives representing 5.06 percent, 0.48 percent and 0.01 percent respectively, of overall market turnover.
The FMDQ OTC Market Turnover Report shows the turnover on all products traded on the FMDQ secondary market – Foreign Exchange (FX), Treasury Bills (T-bills), Bonds (FGN Bonds, other Bonds (Agency, Sub-national, Corporate & Supranational) & Eurobonds)) Commercial Papers and Money Market (Repos/Buy-Backs and Unsecured Placements/Takings). These figures exclude primary market auctions in T-bills and Bonds.
In the last five years of operation, the FMDQ has seen a consistent increase in its market turnover, except in 2016 when the turnover dropped from N137.43tn in 2015 to N113.66tn. The annualized 2019 performance will see turnover leapfrog by 31 percent to N238.8 trillion for the forecasted turnover in 2019.
The top ten (10) Dealing Member (Banks) accounted for 77.25 percent (₦61.50trn) of the overall turnover in the market, with the top three (3) accounting for 43.09 percent (₦34.31trn) of this sub-section of the market.
Stanbic IBTC Bank PLC, United Bank for Africa PLC and Access Bank PLC remained leaders in the value traded for the overall over-the-counter (OTC) market, ranking 1st, 2nd and 3rd respectively.