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Commercial Paper Quotation


As part of its key strategic mandates to develop the market, FMDQ provides a robust platform for the quotations of Commercial Papers (CPs).
Quotation of CPs on FMDQ gives issuers access to a wide range of knowledgeable and capitalised investors (qualified institutional investors & eligible individual investors) through FMDQ Members. Liquidity is enhanced through the trading of the instruments by FMDQ Dealing Members and other stakeholders such as Pension Fund Administrators (PFAs), Fund Managers etc. on FMDQ OTC securities exchange. On the other hand, investors are able to diversify their portfolios and also improve the returns on their investment. Improved liquidity serves to ensure ease of entry and exit from the CP market by these investors.
Desirous of entrenching transparency and governance in the Nigerian financial market, FMDQ identified the need for a robust structure around the issuance and quotation of CPs. Consequently, FMDQ developed a process to revitalise the Nigerian money market and further enhance transparency at the short end of the corporate yield curve. This transparency drive is also characterised by continuous disclosure of relevant information on instruments quoted on the exchange. This information includes: issuer, issuance type, outstanding value and issuer history.
The securities exchange promotes credibility for quoted CPs, through a highly efficient registration process which supports price reasonability and audit trails. In support of this process, FMDQ released Rules to govern the quotation of CPs on its platform.
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