Nigeria’s FMDQ Group, owner of the country’s leading fixed income securities exchange, has confirmed plans to launch its own equity market, setting the stage for direct competition with the Nigerian Exchange Group (NGX). The announcement was made during FMDQ’s 13th Annual General Meeting, highlighting the Group’s ambitions to broaden its market offerings and deepen Nigeria’s capital market ecosystem.
FMDQ is also enhancing investment flexibility for long-term investors through the introduction of long-dated FX Futures contracts. The holding period for such instruments has been extended from 12 to 21 months, while a new price discovery mechanism on the proprietary PenDealer platform aims to improve trade execution efficiency. These measures reflect the Group’s focus on innovation and investor-centric solutions.
On the depository side, FMDQ’s Qex Depository System now serves 47 participants, with securities lodged increasing to 150, valued at N1.28 trillion. Outgoing CEO Bola Onadele Koko confirmed plans to activate the FMDQ Equity Market and the Unsponsored Depositary Receipts Market, marking a major step in providing alternative trading venues and challenging the NGX’s longstanding monopoly on equities trading.
The Group’s 2024 financial performance underscores its market strength, with pre-tax profit rising 66.5% to N23.2 billion, driven by treasury income and other revenue streams. While FMDQ’s fixed income exchange recorded N34.29 billion in revenue, NGX posted N16.8 billion, highlighting FMDQ’s dominant position in Nigeria’s bond and fixed income market.
Looking ahead, FMDQ aims to launch the repurchase agreement market, spin off FMDQ Academy as an independent entity, expand equity depository services, and introduce the ARTIS DealRoom for private market investors. Acting CEO Kaodi Ugoji emphasized that these initiatives reflect the Group’s commitment to agility, innovation, and stronger collaboration among stakeholders to support Nigeria’s growing financial market.
Source: Nairametrics