FMDQ OTC Securities Exchange has entered into a Memorandum of Understanding (MoU) with Dow Jones Indices, a division of S&P Global, for the adoption of S&P Nigeria Sovereign Bond Index.
The S&P Nigeria Sovereign Bond Index tracks the performance of local currency denominated sovereign debt publicly issued by the Federal Government in its domestic market.
The index is a sub-index of the S&P Africa Sovereign Bond Index, a broad, transparent and independent benchmark that comprises a universe of sovereign bonds, denominated in local currency from 13 African countries.
The index also has 13-country level sub-indices.
At the ceremony in Lagos, Mr. Bola Onadele, FMDQ Managing Director, said that the index adoption would help in the development of the nation’s financial market.
Onadele said that the partnership between FMDQ and S&P Dow Jones Indices marked the announcement of the adoption of the S&P Nigeria Sovereign Bond Index.
He said that it was part of the company’s mandate to promote price discovery and transparency in the Nigerian financial market.
Onadele said that it would revolutionize the financial markets by providing investors with a consistent, credible and objective measure of the performance of their investments.
“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.
Onadele said that the index would promote global visibility, and as well enhance investors’ confidence in fixed income products.
FMDQ OTC, he added, was positioned to drive global competitiveness by deepening its market through product innovation and institutionalizing robust market architecture such as trade execution, trade data repository, among others.
Also, Mr. Kurt Zyla, the Managing Director & Global Head, Exchange Relationship, S&P Dow Jones Indices, said that the organization was the largest global resource for essential index-based concepts, data, and research.
Zyla said that it was a home to iconic financial market indicators such as the S & P 500 and the Dow Jones Industrial Average.
He said that more assets were invested in products based on its indices than on any other provider in the world.
“With over one million indices and more than 120 years of experience, constructing innovative and transparent solutions, S&P Dow Jones Indices defines the way investors measure and trade the markets,” he said.
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