FMDQ OTC Securities Exchange Gets New Board Members, Records $4.98 Billion Foreign Currency Securities Listings

Chairman, FMDQ OTC, Dr Okwu Joseph Nnanna

By CLEMENT NWOJI, Abuja

The Board of Directors of FMDQ OTC Securities Exchange (FMDQ) also known as “OTC Exchange”, has appointed five new Directors to the Board of the Company, with their tenure commencing immediately, as part of strategic repositioning for future growth.

Further, OTC Exchange attracted foreign currency-denominated securities listings to the tune of $4.98bn in the out gone 2017 financial year.

These were revealed at its 6th Annual General Meeting (AGM) held at the OTC Exchange’s new building complex – Exchange Place, located at 35 Idowu Taylor Street, Lagos, last Friday.

As high points of the meeting, the shareholders ratified the appointments of Mr. Segun Agbaje
(Managing Director/CEO of Guaranty Trust Bank PLC); Mr. Uzoma Dozie (Group Managing Director/CEO of
Diamond Bank PLC); Mr. Charles Kie (outgoing Managing Director of Ecobank Nigeria PLC); Mr. Kayode Akinkugbe (Managing Director/CEO of FBNQuest Merchant Bank); and Mr. Samuel Ocheho (Head, Global Markets West Africa, Stanbic IBTC Bank PLC ), as Non-Executive Directors of FMDQ.

These were even as the shareholders ratified the retirement of four Non-Executive Directors, from the board following the end of their terms in accordance with the Company’s governance guidelines.

According to a statement from the OTC Exchange office, those retired include Dr. Demola Sogunle (served on the Board from 2017 – 2018), Dr. Adesola Adeduntan (served on the Board from 2016 – 2018), Mr. Kennedy Uzoka (served on the Board from 2016 – 2018); and Mr. Bayo Adeyemo (served on the Board from 2014 – 2018). The changes in the Board have brought the total number of Directors on FMDQ to 11.

The shareholders also received the Financial Statements of the OTC Exchange for the year ended December 31, 2017, together with the Reports of the Directors and Auditors to the Shareholders; reappointed the
Auditors, Messrs. KPMG Professional Services, to serve as the Company’s External Auditors for another year, and authorised the Directors to fix the External Auditors’ remuneration.

In addition, three new members appointed to serve on the Company’s Audit Committee include Mr. Nnamdi Okonkwo (Managing Director/CEO of Fidelity Bank PLC); Mr. Abubakar Jimoh (Managing Director/CEO of Coronation Merchant Bank Limited); and Mrs. Hamda Ambah, (Managing Director/CEO of FSDH Merchant Bank Limited).

While presiding over the AGM, the Chairman of FMDQ, Dr. Okwu Joseph Nnanna, said: “An impressive number of 50 debt securities, up 74 percent from the previous year, with a total value of ₦236.87bn, was admitted on the OTC Exchange.

“FMDQ recorded a total of 37 Commercial Papers (CPs), 10 Bonds and three Funds quoted and listed on our platform.

“Furthermore, we also attracted foreign currency-denominated securities listings to the tune of $4.98bn, with the Federal Republic of Nigeria making history by listing, for the first time on a Nigerian Exchange, its Eurobonds and the inaugural Diaspora Bond on the OTC Exchange”.

Further, the Chairman listed some other major achievements of FMDQ in 2017 such as the successful registration of FMDQ Clear Limited (FMDQ Clear), a fully-owned subsidiary of FMDQ, by the Securities and Exchange Commission (SEC),; the approval of the OTC Exchange’s Sukuk Listing Rules by the SEC; and the partnership with S&P Dow Jones Indices by the signing of a memorandum of understanding (MoU) for the development and publication of co-branded fixed income indices in the Nigerian financial market.

He thanked all stakeholders for their unrivalled support.

Speaking on the financial performance of FMDQ, the Managing Director/CEO of FMDQ, Mr. Bola Onadele Koko, noted that in 2017, FMDQ recorded a commendable financial performance with total revenue of ₦2.57bn; a 25.94 percent increase from ₦2.04bn in 2016, which was driven by the OTC Exchange’s revenue diversification drive.

Expressing optimism on future progress of the company,, he restated FMDQ’s commitment to becoming a fully diversified and integrated market infrastructure group, commencing with the operationalisation of FMDQ Clear, and the activation of its multi-asset Proprietary Market System, FMDQ Q-ex, to facilitate straight-through-processing in the fixed income markets through the integration of FMDQ’s trading systems with the Central Bank of Nigeria (CBN)’s settlement
system.

He also assured that the full activation of FMDQ’s flagship corporate responsibility programme, the Next Generation Financial Market Empowerment Programme (“FMDQ Next”) will be achieved in 2018, to foster financial markets education amongst students – primary, secondary and university levels – and fresh graduates in Nigeria.

He said: “FMDQ, as a change agent, and in its quest towards becoming a fully diversified and integrated market infrastructure, providing an Exchange – an efficient platform for registration, listing, quotation, noting, trading, order execution and trade reporting within its markets (fixed income, currency and derivatives); a central clearing house – facilitating the clearing, settlement and delivery of securities and financial market products within the Nigerian capital market; as well as offering a full suite of products, inter alia, remains resolute in its commitment
to its strategic mandate of aligning the markets within its purview to international standards.”