Acting Director-General of the Securities and Exchange Commission, SEC, Ms Mary Uduk has commended FMDQ Securities Exchange Plc on its achievements so far, saying its entry has brought about healthy competition in the capital market.
Uduk who spoke with journalists at the Gold Awards and Dinner organised by FMDQ in Lagos weekend, said FMDQ has increased the tempo of activities in the capital market.
According to her “They have created more activities in the market. A lot of areas that seemed dormant before now like the bond market have seen a lot of activities because of the active trading on FMDQ platform. They have done very well since they started six years ago.”
She disclosed that they have also partnered with the regulator in several areas of training like derivatives among others.
“Since their entry, there has been competition and we are excited about the competition. Investors and operators now have a choice of where to go and that is a good one for the market,” Uduk said.
It will be recalled that FMDQ Securities Exchange Plc in August formally launched its new status and corporate identity as a full fledge securities exchange with registration to trade in all securities including fixed income, equities, derivatives, commodities and foreign exchange.
While commending FMDQ for attracting capital to the market, she disclosed that the Commission also has several initiatives in place to attract both local and foreign investors to the capital market.
For instance, she said, an important goal of the Capital Market Master Plan (2015-2025) is to transform the Nigerian capital market, making it competitive, while contributing its quota to developing the nation through funds mobilisation. The plan is hinged on four strategic themes, namely; contribution to national economy, competitiveness, market structure and regulation & oversight.
In contributing to the National Economy, Uduk said the SEC, in conjunction with the market, has worked on initiatives that simplified the process of raising capital and reduced time to market.
The recent efforts towards developing the Nigerian commodities ecosystem and the Fintech space are also important contributions to the Nigerian economy.
“In order to enhance market Competitiveness, the minimum capital requirements for capital market operators were raised, transaction costs have been reduced for both equities and fixed income segment of the market, a robust complaint management framework was introduced and various other initiatives are being implemented to enhance the liquidity of the Nigerian capital market.
“Towards improving the Market Structure, minimum operating standards for all market operators have been implemented. Some of the ongoing initiatives such as the e-dividend, multiple subscription, direct cash settlement and electronic distribution of companies’ annual reports are geared towards achieving an innovative market structure.
Earlier, Mr Okwu Joseph Nnanna, Chairman, FMDQ, represented by Mr Jibril Aku, Vice Chairman, FMDQ, while welcoming guests to the Conference, commended all stakeholders for the support given to FMDQ thus far, while noting that the Group will continue to provide the essential platform to power growth and foster the strengthening of the broader Nigerian financial market.
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