By Nkiruka Nnorom
FMDQ OTC Securities Exchange in collaboration with S&P Dow Jones Indices, the world’s leading provider of financial market indices, has commenced co-branding of indices with the successful transition of Nigeria’s foremost Sovereign Bond Index.
The index, known as S&P/FMDQ Nigeria Sovereign Bond Index, was formerly branded as S&P Nigeria Sovereign Bond Index, and tracks the performance of local currency denominated sovereign debt publicly issued by the federal government in the domestic market.
Both organisations had in 2017 announced the signing of a cooperation agreement to create and launch co-branded fixed income
According to FMDQ in a statement, the successful transition of the S&P/FMDQ Nigeria Sovereign Bond Index marked the activation of the inaugural co-branded index under the agreement.
It stated that a range of other S&P/FMDQ Fixed Income indices would be developed under the agreement.
Alex Matturri, 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 market”
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 market, 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 market.”