FMDQ releases appeal process for penalties on trading infractions

FMDQ OTC Securities Exchange has developed an appeal process for penalties on trading infractions for trades carried out on its platform.

This development is in furtherance of its mandate to provide an enabling environment for the growth and development of the Nigerian over-the-counter (OTC) financial markets.

The Appeal Process, as approved by the Board Regulation and Risk Management Committee (BRRMC), involves a three-level structure; starting at the Management level, through the Trading Infractions Appeal Committee, proceeding to the Board Committee level, through the BRRMC, and terminating with the Board of Directors of the Exchange.

The Appeal Process is designed to ensure proper management and adjudication of appeals made by aggrieved Dealing Member (Banks), in the event of a disagreement arising out of penalties imposed, based on the FMDQ E-Bond Trading Infractions and Penalties Guide.

The Appeal Process shall be read in conjunction with all FMDQ Rules including but not limited to the FMDQ OTC General Market Rules, FMDQ Codified Rule Books, FMDQ E-Bond Trading Rules, FMDQ E- Bond Trading Infractions and Penalties Guide and Disciplinary Procedure Rules.

Driven by its “GOLD” (Global Competitiveness, Operational Excellence, Liquidity and Diversity) agenda for the transformation of the Nigerian markets, FMDQ continuously identifies key stakeholders and alliances, within the financial markets space, whose partnerships are pertinent to its achieving these set goals.

Early last month, FMDQ paid a visit to the House of Representatives’ Committee on Capital Market and Institutions with the aim of initiating and building collaboration opportunities between the House Committee and FMDQ towards the development of the Nigerian capital markets.

The total turnover for the period January to April 2016 amounted to N32.16trillion. Trading activities in T.Bills contributed the largest to overall turnover, accounting for 37percent, secured market transactions (Repos/Buy-backs) accounted for 28percent, while FX market transactions accounted for 21percent and FGN bonds, 12percent.

FMDQ league table shows the rankings of its top ten Dealing Member (Banks) –Diamond Bank plc, Access Bank plc, Stanbic IBTC Bank plc, United Bank for Africa plc, First Bank of Nigeria Limited, Ecobank Nigeria Limited, Skye Bank plc, Standard Chartered Bank Nigeria Limited, Guaranty Trust Bank plc, and Union Bank of Nigeria plc.

The top ten Dealing Member (Banks) accounted for 72 percent (N39.38trillion) of the overall turnover in the market, with the top three accounting for 42 percent (N16.62trillion) of this sub-section of the market.

Diamond Bank plc, Access Bank plc and Stanbic IBTC Bank plc ranked first, second and third respectively, maintaining their positions as the leaders in the value traded for the overall OTC market.

Other institutions also maintained their positions on the League Table with the exception of First Bank of Nigeria Limited, moving from 6th to 5th position, pushing Ecobank Nigeria Limited to 6th position and Guaranty Trust Bank plc swapping 9th position with Union Bank of Nigeria plc.

 Iheanyi Nwachukwu