Wednesday, 31 July 2019

FMDQ SECURITIES EXCHANGE PLC CHANGES TO FMDQ HOLDINGS PLC

Shareholders of FMDQ Securities Exchange Plc have given their consent for the company name to be changed to FMDQ Holdings Plc.

The Chairman, FMDQ, Dr. Joseph Nnanna, said the new name of the company took effect after the shareholders gave their approval at the company’s 7th Annual General Meeting in Lagos.

He noted that the change to a holding company was necessitated by the registration of the company’s wholly-owned clearing and settlement company, FMDQ Clear Limited, by the Securities and Exchange Commission in November 2017.

Dr. Nnanna stated that the company commenced operations on January 2, 2018, which brought about an improved performance in the group’s account. According to him, the diversification and expansion of the business to incorporate clearing and settlement services brought about an increase of 423.81 per cent and 427.89 per cent from 2017 in the consolidated revenue and company revenue, which stood at N13.20bn and N13.25bn, respectively.

 He said though consolidated expenses increased from N2.20bn in 2017 to N5.99bn in 2018, the consolidated profit before tax of N7.21bn significantly surpassed N349.76m in 2017.

In Dr. Nnanna’s own words, “Turnover from trading activities on our platform, in the fixed income, currency, and foreign exchange product lines, also exceeded the 2017 performance by 22 per cent to settle at N182.62tn in 2018. Our securities admission business continued to grow in 2018 as we admitted 78 debt securities, up by 58 per cent from the 50 securities admitted in the previous year, with a total value of N1.02tn in 2018, compared to N236.9bn in 2017.”

He added that the company’s membership also grew by seven per cent, from 181 members to 195 members across all categories. He said following the operationalisation of FMDQ Clear Limited, the company would focus on further strengthening the clearing and settlement franchise, operationally and strategically, to enhance its readiness to operate a full-fledged central counterparty in 2019. “This objective will be to further boost its value delivery to the fixed income, foreign exchange and derivatives market,” he added.

The Managing Director/Chief Executive Officer, FMDQ, Bola Onadele Koko, said the company would work assiduously to implement its Derivatives Market Implementation Roadmap towards developing the derivatives market.

He said the roadmap would ensure market readiness ahead of the launching of derivative products into the financial market landscape in subsequent years.

Koko stated that the company would continue to consolidate on achievements over its first lustrum, towards building a sustainable, well-diversified group while consistently adding value to all stakeholders and delivering exceptional value to its shareholders. (Punch)

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