FMDQ Clear, which was registered as a CCP by the Securities
and Exchange Commission (SEC), to provide post-trade services that will enhance
the integrity of the financial market and eliminate the inherent counterparty
risks therein, whilst facilitating settlement finality, delivering capital and
cost efficiencies, and de-risking the Nigerian financial market, recognises the
importance of forging alliances with key financial market Associations, both
domestic and international, to enhance market development, capacity building
and knowledge sharing opportunities and better equip FMDQ Clear to foster
growth and development in the Nigerian financial market.
The Chairman, CCP12, Mr. Kevin McClear and Chief Executive
Officer, CCP12, Mr. Teo Floor, stated “we are delighted to welcome FMDQ Clear
to our global community. Their ongoing development signals the value of central
counterparty clearing across a variety of markets, and we look forward to a
successful collaboration.”
CCP12 promotes effective, practical, and appropriate risk
management and operational standards for CCPs to ensure the safety and
efficiency of the financial markets it represents. CCP12 leads and assesses
global regulatory and industry initiatives that concern CCPs to form consensus
views, while also actively engaging with regulatory agencies and industry
constituents through consultation responses, forum discussions and position
papers.
Speaking on the membership admission, Mr. Ayodele Onawunmi,
Managing Director, FMDQ Clear, stated “we are excited to become a member of
CCP12, a comity of world-class and vibrant CCPs, which provides the platform
for global collaboration, engagements and knowledge sharing that will support
the development of the Nigerian post-trade services value chain towards global
standards.
Our acceptance as an Observer Member of this global body of
CCPs is a testament to our commitment to become a globally accepted CCP by
2025”. FMDQ Clear plays a key role in the Nigerian financial market and over the last four (4) years, has
provided end-to-end post-trade services for the bespoke Naira-Settled OTC FX
Futures (“NSOFF”) product traded on FMDQ Securities Exchange Limited (FMDQ
Exchange), where it carries out its risk management functions and ensures
settlement finality of executed NSOFF contracts.
Following attainment of the much-needed legal framework –
bankruptcy remoteness and netting arrangements via the repeal &
re-enactment of the Companies and Allied Matters Act, 2020, to enable a vibrant
and thriving Exchange-Traded Derivatives (“ETD”) market, FMDQ Clear has
commenced efforts to operationalise necessary structures for the activation of
CCP services for the soon-to-be launched ETD and cash markets on FMDQ Exchange.
FMDQ Group is Africa’s first vertically integrated financial
market infrastructure group, strategically positioned to provide registration,
listing, quotation and noting services; integrated trading, clearing &
central counterparty, settlement, and risk management for financial market
transactions; depository of securities, as well as data and information services,
across the debt capital, foreign exchange, derivatives and equity markets,
through its wholly owned subsidiaries – FMDQ Exchange, FMDQ Clear, FMDQ
Depository Limited and FMDQ Private Markets Limited.