The Securities and Exchange Commission (SEC) registered FMDQ Clear Limited on Wednesday, as a premier Central Counterparty (CCP), giving the financial market a boost.
With this, FMDQ will interpose itself between two counterparties by becoming the buyer to every seller and seller to every buyer, thereby aggregating and consolidating counterparty risks.
- Support Buhari to make Nigeria great, Omo-Agege tells secessionists
- How to secure your data when using wireless connection
The CCP is able to manage the consolidated risks in an operational-cost and capital-efficient manner that unlocks value for market participants within its value chain.
FMDQ in a statement said the required legislation was addressed by the repeal and re-enactment of the Companies and Allied Matters Act, 1990 (CAP C20, LFN 2004) as Companies and Allied Matters Act 2020 (CAMA 2020) into law on August 7, 2020.
As the first Central Clearing House in Nigeria, and having provided clearing services for the Central Bank of Nigeria Naira-Settled over the counter (OTC) FX Futures product with over US$50.00bn contracts executed, it has acquired operational capabilities to compete in international markets.
The CEO of FMDQ Group, Bola Onadele Koko, said: “By the Approval-in-Principle granted FMDQ Clear’s registration as a CCP, the commission has again demonstrated its relentlessness and forward-thinking disposition towards the development of the Nigerian capital markets and the nation’s economy.”
