Trading on FMDQ OTC Market Declines 24% to N13tr in One Month

Goddy Egene

Turnover on the Fixed Income and Currency (FIC) on the over-the-counter (OTC) market operated by FMDQ OTC Securities Exchange in July stood at N13.09 trillion, showing a decline of 23.99 per cent, compared with the N17.23 trillion recorded the previous month.

An analysis of the data released by FMDQ on Monday, showed that turnover largely declined across all segments of the FIC market, excluding the Repurchase Agreement/Buy-Backs market which recorded a 5.22 per cent increase in July▪

The Treasury bills (T.bills) and Foreign Exchange (FX) segments remained the major drivers of turnover in the FIC market, jointly accounting for 74.26 per cent of total turnover in July, albeit a 5.09 percentage points decline from their levels of contribution in June FX Market▪

Total FX market turnover in July was $12.61 billion, a 36.31 per cent ($7.19 billion) decline from the amount recorded in June ($19.80 billion).

Turnover at the Investors & Exporters (I&E) FX Window in July was $3.39 billion, representing a 13.74 per cent ($0.54 billion) decline from the value recorded in June ($3.93 billion).

A further analysis of FX turnover by trade type showed a similar trend to the total FX Market turnover in July, with member-CBN trades recording the highest percentage decline of 38.11 per cent ($2.14 billion), while member-clients trades recorded the highest decline in value of $4.06 billion from $11.21 billion in June to $7.16 billion in July▪

Analysis of contribution to total FX turnover by trade type indicated member-client and member-CBN trades remained the major drivers of turnover. However, the contribution of member-CBN trades declined marginally to 27.52 per cent, while the contribution of Inter-member and member-client trades to total FX turnover increased marginally to 15.78 per cent and 56.78 per cent respectively.

In the revenue month, the total turnover in the fixed income (FI) market was N6.16 trillion, representing a 21.54 per cent decline from the turnover reported in June. Turnover in the T.bills market recorded a decline of 21.06 per cent while turnover in the FGN Bonds market declined by 24.28 per cent.

Total T-bills outstanding as at July 31, 2018, stood at N13.47 trillion, representing a 2.13 per cent decline, driven by the continued redemption of T.bills in the month of July.