FMDQ OTC Plc has announced the approval of the pioneer listing of the N30.5bn United Bank for Africa bond on its platform.
It said in a statement that the decision followed the recent approval of FMDQ bond listing and quotation rules by the Securities and Exchange Commission.
As a securities exchange and self-regulatory organisation registered by SEC, FMDQ provides a platform for the registration, listing, quotation and trading of bonds and other fixed income securities.
Through its market development initiatives, such as the FMDQ e-Discovery price activity portal, online quotations service which involves a continuous disclosure of relevant information on fixed income issues listed on its platform, and the publication of the FMDQ daily quotations list, FMDQ has empowered the Nigerian bond market with price discovery, transparency and market integrity.
According to the statement, listing and quotation on FMDQ provides a host of benefits across the debt market value chain, positively impacting stakeholders in the debt capital market such as issuers, investors, issuing houses, market makers and regulators.
“FMDQ’s value-add to DCM includes visibility and transparency to the listed/quoted debts, improved secondary market liquidity, benchmark pricing and price formation, among others, resulting in a more globally competitive Nigerian capital market,” it added.
Bonds listed and admitted on FMDQ will be traded by fixed income specialists, FMDQ dealing members, who will act as market makers to these bonds thus providing trading liquidity to the bond.
An average value of circa N561bn is traded on the FMDQ platform daily.
