FMDQ, S&P Dow Jones begin co-branding of indices


FMDQ OTC CEO, Bola Onadele Koko

By Chioma Obinagwam

FMDQ OTC Securities Exchange (FMDQ), the foremost debt capital, foreign exchange and derivatives over-the-counter (OTC) securities exchange in Nigeria as well as S&P Dow Jones Indices (S&P DJI), the world’s leading provider of financial market indices have announced the commencement of the co-branding of their fixed income indices.
The co-branding, the statement released by the FMDQ disclosed, begins on Monday.

According to the statement the collaboration leads to a successful transition of Nigeria’s Foremost Sovereign Bond Index.

The statement further indicated that the FMDQ had in 2017, announced the signing of a cooperation agreement to create and launch co-branded fixed income indices.

“Today, 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 statement disclosed.

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, Chief Executive Officer (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,” he said.

S&P Dow Jones Indices is the largest global resource for essential index-based concepts, data and research, and home to iconic financial market indicators, such as the S&P 500 and the Dow Jones Industrial Average.

“More assets are invested in products based on our indices than products based on indices from any other provider in the world. Since Charles Dow invented the first index in 1884, S&P DJI,” the statement disclosed.

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