In line with its vision “to become a globally accepted CCP by 2025”, FMDQ Clear Limited (“FMDQ Clear”), Nigeria’s Premier Central Counterparty (CCP) and a wholly owned subsidiary of FMDQ Holdings PLC (“FMDQ Group”), was admitted to the Global Association of Central Counterparties (“CCP12 or the “Association”), representing forty-one (41) members who operate more than sixty (60) individual CCPs globally across the Americas, EMEA and the Asia-Pacific region, as an Observer Member, following the just concluded monthly CCP12 Executive Meeting which held on Wednesday, October 20, 2021.
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.