FMDQ OTC Securities Exchange has partnered with S&P Dow Jones Indices on the development and publication of fixed income indices in Nigeria.

Bola Onadele (Koko), Managing Director and CEO, FMDQ OTC Securities Exchange, said: “This is indeed a landmark achievement as the development of these co-branded fixed income indices aims to revolutionise the face of the Nigerian financial markets by providing investors with a consistent, credible and objective measure for the performance of their investments in the Nigerian financial markets.” 

“This will likewise serve as an acceptable benchmark for the fixed income market and provide transparent and credible information to the investing public and other persons with interest in the Nigerian financial market,” he said.

FMDQ, remains resolute and unwavering in its commitment to develop the Nigerian debt capital market and promote an efficient, transparent, and well-regulated financial market, which will attract and retain investors, both domestic and foreign.

FMDQ embarked on the journey towards providing reliable and credible benchmarks in 2014 with the launch of the FMDQ FGN Bond Index.

Following the launch, the OTC Securities Exchange continued to identify ways to improve the existing index and align it with international best standards as set out in the International Organisation of Securities Commission (IOSCO) Principles for Financial Benchmarks. 

This necessiated numerous engagements with stakeholders including but not limited to asset managers and financial services regulators, who all identified the governance of the index as a very critical value-add for the successful delivery of the mandate.

To achieve this, FMDQ sought to partner with SPDJI, which was identified as a credible brand and renowned for its index governance.

SPDJI is the largest global resource for essential index-based concepts, data and research.

The partnership between FMDQ and S&P DJI marks the announcement of the adoption of the S&P Nigeria Sovereign Bond Index, a bond index which tracks the performance of local currency denominated index to be co-branded under the partnership.

Alex Matturri, CEO, S&P Dow Jones Indices, said: “S&P Dow Jones Indices has been calculating Nigerian indices for a number of years and we have more recently expanded our offering to include dividend and fixed income indices.” 

“As the Nigerian financial market develops and FMDQ establishes its position as the foremost debt capital securities exchange, we’re pleased to be able to bring greater index-based solutions, research and analysis to the Nigerian market,” he said. 

“Following the adoption of the S&P Nigeria Sovereign Bond Index and our partnership with FMDQ, we’re looking forward to meeting the evolving needs of investors for benchmarks that will continue to define the way investors measure and trade the market,” he added.