FMDQ Securities Exchange PLC (FMDQ Exchange or the Exchange) activated the FMDQ Exchange Derivatives Market Development Project (the “Project”) in 2018 to set the tone for and facilitate the launch of a standardised derivatives market in Nigeria by the Exchange.
Critical to the success of this launch is education and capacity building for all market stakeholders on how a derivatives market works and how other countries/climes have used this very important market to leapfrog their financial markets and support economic development in the long run. Having successfully run Series I of the Derivatives Market Training for Stakeholders, FMDQ Exchange has commenced Series II of these training sessions through its learning and development initiative – FMDQ Academy – which seeks to address financial markets capacity building requirements for participants and other stakeholders in the FMDQ Exchange markets; allowing them to maximise the potential of these markets towards positively impacting development of the Nigerian financial markets.
To flag off Series II, FMDQ Exchange hosted the media through the umbrella body of the Capital Markets Correspondents Association of Nigeria (CAMCAN) – strategic partners to the reportage of FMDQ Exchange markets and the frontline ambassadors to the Nigerian financial markets to a 2-day training session as a means of providing a holistic understanding of Exchange-traded derivatives and associated products.
From discussions on how the pioneer product championed by the Central Bank of Nigeria in close collaboration with FMDQ Exchange, the Naira-settled OTC FX Futures product works; participants were exposed to various concepts to aid their appreciation of the derivatives market and also build their capacity for onward communication and reporting purposes. Other stakeholder categories, including financial market Regulators, FMDQ Exchange Dealing Member (Banks), Corporate Treasurers of non-bank financial institutions, amongst others, have also been scheduled to undergo requisite training in this regard, to ensure all participants are knowledgeable and ready to use the offerings of the derivatives market to improve business planning and appropriately manage foreign exchange exposures using hedging products available in the FMDQ Exchange derivatives market.
FMDQ Exchange and its subsidiaries, FMDQ Clear Limited and FMDQ Depository Limited, in availing the market with an end-to-end platform to list, trade, clear and settle financial market transactions, shall continue to foster economically impacting initiatives, in order to deliver on the mandate of making the Nigerian financial markets globally competitive, operationally excellent, liquid and diverse.