Equities: FMDQ plans to begin listing firms

FMDQ Securities Exchange has said that following the approval by the Securities and Exchange Commission (SEC), moving it from ‘an OTC Market’ to a full-fledged ‘Securities Exchange, it is planning among other things to enter the equity market.

Addressing journalists on the development, the Managing Director/Chief Executive Officer of the firm, Mr. Bola Onadele Koko, said: “We will be in the equity market when we win the first listing. The fact that we want to do equity does not mean it will be now. Companies take time to come for equity, so the time line we don’t know.”

The exchange has also activated and operationalised two wholly-owned subsidiaries, FMDQ Clear Limited and FMDQ Depository Limited, both positioned to provide efficient post-trade services, among others; making FMDQ a one-stop financial market infrastructure group and an integrated platform to execute, clear and settle financial market transactions.

Contrary to reports that the new FMDQ Securities Exchange Plc would break the monopoly enjoyed by the Nigerian Stock Exchange (NSE) as a platform to trade securities in Nigeria, Onalede said the exchange  did not intend to compete with the NSE.

He said that the new securities exchange was looking at how it can create new entities for the future, work and nurture them, work with SMEs and private companies in Nigeria, which have not had access to long term financing.

He said: “We are not playing the game of attacking the NSE; that is not our role or our job or the way we do business. Rather, we are looking at how to create new entities for the future, to work and nurture them, to work with SMEs, private companies in Nigeria that have not had access to long term financing, so we are in the business of planning 20-30 years ahead and working with Nigerian entities in getting prosperity to Nigerians.

Onadele further revealed that FMDQ was putting some internal touches as regards equities, adding that it will be in the equities market when it does the first listing of a Nigerian company.

He said: “We are working hard and there are internal things that need to be put in place to ensure that we are fully ready and we will be in the equities market when we do the first listing, but what is important is that we are now a securities exchange that can offer market services.

“We do not think any other African country should have financial market better than the financial market in Nigeria. So there is need for us to position the Nigerian capital market to be number one in terms of standards, governance, transparency, and we have to work on the liquidity as much as we can and we have to give the stakeholders, not just the Nigerian investors but clearing houses that will match any international standard and all these matches with our vision at FMDQ.”

He, thereafter, assured that the exchange would continue to trade in all securities including fixed income, derivatives, commodities and foreign exchange.

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