In line with its vision to become a globally accepted CCP by 2025, FMDQ Clear Limited, 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)
The CCP12 represents 41 members who operate more than 60 individual CCPs globally across the Americas, EMEA and the Asia-Pacific region.
Nigeria’s FMDG was admitted 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 while facilitating settlement finality and delivering capital and cost efficiencies.
FMDQ Clear also functions to and de-risk the Nigerian financial market as it recognizes the importance of forging alliances with critical financial market Associations, both domestic and international, to enhance market development, capacity building and knowledge sharing.
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”.
According to him, 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.
According to him, CCP12 leads and assesses global regulatory and industry initiatives that concern CCPs to form consensus views while 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, 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 vital role in the Nigerian financial market and, over the last four 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.