Industry

FMDQ OTC and S&P Dow Jones commence co-branding of indices

LAGOS AND NEW YORK–FMDQ OTC Securities Exchange (“FMDQ”), the foremost debt capital, foreign exchange and derivatives over-the-counter (“OTC”) securities exchange in Nigeria, and S&P Dow Jones Indices (“S&P DJI”), the world’s leading provider of financial market indices, had in 2017 announced the signing of a cooperation agreement to create and launch co-branded fixed income indices.

The successful transition of the S&P/FMDQ Nigeria Sovereign Bond Index marks the activation of the inaugural co-branded index under the agreement. A range of other S&P/FMDQ Fixed Income indices will be developed under the agreement.

The S&P/FMDQ Nigeria Sovereign Bond Index, formerly branded as S&P Nigeria Sovereign Bond Index, tracks the performance of local currency denominated sovereign debt publicly issued by the government of Nigeria in its domestic market.

Alex Matturri, CEO of S&P Dow Jones Indices said: “We are pleased to collaborate with FMDQ to create benchmarks for Nigeria’s domestic fixed income markets. This is S&P Dow Jones Indices’ first-ever agreement with an Africa-based securities exchange to offer fixed income indices. The successful transition of the S&P/FMDQ Nigeria Sovereign Bond Index marks the beginning of our joint efforts to establish a more transparent environment for market participants to gain insights into the Nigerian capital markets.”

According to Mr. Bola Onadele. Koko, Managing Director/CEO, FMDQ OTC Securities Exchange, “FMDQ, as part of its “GOLD” (Global Competitiveness, Operational Excellence, Liquid & Diverse) agenda for the Nigerian financial markets, is committed to developing and increasing the market accessibility for all stakeholders including the investors. We are delighted to collaborate with S&P Dow Jones Indices to further deepen the markets through these index-based solutions and measures. As we see more domestic and global demand, for diverse and innovative investment products, the S&P/FMDQ index family will critically serve to raise the global exposure of the Nigeria fixed income assets and represent an opportunity to increase trading flows to the Nigerian financial markets.”