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Wednesday, February 28, 2024

FX, Fixed Income, Derivatives Trading Surges 39% on OMO

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Secondary market trading in Foreign Exchange (FX), fixed income products and Money Market Derivatives in Nigeria surged by 39 percent in June on the back of trading in Open Market Operations (OMO) bills.

Total market turnover rose to $42.6 billion (N16.4 trillion) in the month of June 2020, up from $30.5 billion (in May 2020, latest data from the FMDQ shows.

FMDQ, in its capacity as market organiser of the Nigerian OTC markets, receives trade data from its Dealing Members on a weekly basis, and in line with fulfilling its mandate to provide transparency to the market, publishes monthly turnover figures across all the products traded on the FMDQ platform.

The FMDQ Market Turnover Report shows the turnover on all products traded on the FMDQ secondary market – Foreign Exchange, Treasury Bills, Money Market (Repurchase Agreements, Buy-Backs and Unsecured Placements/Takings) and Bonds (FGN Bonds and Other Bonds), Foreign Exchange and Money Market Derivatives. These figures exclude primary market auctions in Treasury Bills, Bonds and Foreign Exchange.

The rise in trading values was largely as a result of the return of trading in OMO bills which came in at $10.8 billion (N4.18 trillion) in June from zero position in May.

Foreign Exchange trading was up marginally to $2.87 billion (N1.1 trillion) from $2.77 billion (N1.06 trillion), while trading in Foreign Exchange derivatives increased to $5.75 billion (N2.22 trillion) from $4.83 billion (N1.86 trillion) in the month of May.

Despite the surge in trading the levels for June were still 29 percent lower than they were in January 2020, when total turnover hit $63.8 billion (N23.1 trillion).

The data, collated from the weekly trade data submissions by FMDQ Dealing Members, represents trades executed between Dealing Members, Dealing Members and Clients, and Dealing Members and the Central Bank of Nigeria (CBN).

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