Yemisi Izuora
The FMDQ Exchange has adopted technology in the process of Commercial Paper (CP) application.
The Exchange says the value of market currently stands at an estimated N3 trillion.
The Divisional Head, Market Architecture, FMDQ Securities Exchange Limited, Mr Oluwaseun Afolabi, disclosed this at the 2024 Capital Market Correspondents Association of Nigeria (CAMCAN) annual workshop in Lagos.
The theme of the workshop was: ‘Banks’ Recapitalisation: Bridging the Gap Between Investors and Issuers in the Nigerian Capital Market.’
According to him, the CP as far back as 2014 was shut down completely and was basically reactivated with the relevant frameworks that assisted people to come to the market.
“Today, FMDQ has put in place technology solely for the processing of applications for commercial papers. So, you do not actually need to call someone.
“Just an application filed on the portal and it will respond immediately that the application has been received. The portal has been working seriously and even advanced the use of that system for other things such as post listing compliance, among other aspects,” he said.
He noted that with the Securities & Exchange Commission (SEC) policies, the FMDQ has put in place a seamless process that eases bond lists, among other fixed income instruments.
He expressed that the timing process at the FMDQ Exchange has been fast-tracked amid the commission’s framework policies.
On what the Central Bank of Nigeria stands to achieve, which is banking sector recapitalisation, Afolabi stated that exercise would drive every aspect in the Nigerian bank market.
“When banks capitalise, they can do bigger fund programmes, the SEC can see their financial capacities to ensure the banks can raise N200 billion worth of funds and the market benefits from the exercise generally,” he said.
He, however, called on stakeholders to address information imbalances in the capital market, stressing that information sharing would address key shareholders’ complaints.
He challenged journalists to understand it’s a critical role in bringing all aspects of the capital market together.
“Journalists have to take a more central role in helping sharpen peoples’ minds in understanding more about what is happening in the capital market,” he said.