$1.20bn OTC FX Traded On FMDQ Platform

FMDQ OTC Securities Ex
change on Saturday said that over 1.20 billion dollars worth of the Central Bank of Nigeria (CBN) OTC FX Futures contracts have been traded on its OTC FX Futures Trading & Reporting System.
This is contained in a statement issued by the company in Lagos and obtained by our correspondent.
The statement said that the apex bank OTC FX Futures contracts cut across all the tenors, with the profile of the buyers of the contracts, including Foreign Portfolio Investors (FPIs) and importers, among others.
It said that “one month into the June 27, 2016, introduction of and formal unveiling of the Naira-Settled OTC FX Futures Market, the pioneer
1M contract about 26.73 million dollars executed between the CBN and authorised dealers on FMDQ.’’
The statement added that the pioneer one million contract matured and was settled on July 27, 2016.
It explained that the 1M contract was valued by the Exchange against the Nigerian Inter-Bank Foreign Exchange Fixing (NIFEX) Spot rate.
“Clearing operations and settlement for the final variation margins, as valued by FMDQ, were effected through the Nigeria Inter-Bank
Settlement System PLC (NIBSS), acting as the clearing and settlement infrastructure for the margining and settlement of the OTC FX Futures contracts.
Consequently, in line with the FMDQ OTC FX Futures Market Framework, ¦ 962.2 million total settlement amount was paid to the ‘Futures Banks’, the counter parties to the CBN on the matured at ¦ 279 per dollar on the maturity date, July 27, 2016,’’ it stated.
The statement added that the apex bank “has replaced the matured July 2016 contract and has now offered the new 12M contract, to mature July 2017, with a total notional amount on offer of one billion dollars at ¦ 250 per dollar.