Regulatory Alerts2014-01-31 | TED/FEM/FPC/GEN/01/005Re: Guidelines For The Operation Of The Foreign Exchange Market - Retail Dutch Auction System (RDAS)
The Central Bank of Nigeria's Trade and Exchange Department has released new guidelines for Authorised Dealers participating in the Retail Dutch Auction System (RDAS). These guidelines include fully funding their current account with the bank two working days before Monday and Wednesday auction days, ensuring accounts are fully funded until the conclusion of the session on market days, and any account not fully funded will lead to disqualified or cancelled bids. The new rules are effective from the February 5th RDAS operation.
TRADE AND EXCHANGE DEPARTMENT 09 46237804 09 46237802 E-mail address:ted@cenbank.org TED/FEM/FPC/GEN/01/005 January 31, 2014 TO: ALL AUTHORISED DEALERS AND GENERAL PUBLIC RE: GUIDELINES FOR THE OPERATION OF THE FOREIGN EXCHANGE MARKET - RETAIL DUTCH AUCTION SYSTEM (RDAS) Further to the circular Ref: TED/FEM/FPC/GEN/01/009 of September 26, 2013 on the above subject, Authorised Dealers are hereby notified of the following additional guidelines for participation in the Retail Dutch Auction System (RDAS) operations:
- Authorised Dealers desirous of participating in RDAS shall fund their current account with the CBN two working days before the auction days of Monday and Wednesday; 2. The Account shall remain fully funded until the conclusion of the Auction session on the market day; 3. Any Account that is not fully funded two working days before the auction shall result in the cancellation of bids submitted by an Authorised Dealer; and 4. For the avoidance of doubt, for Monday auction, the account must be adequately funded on Thursday proceeding the market day while for Wednesday biding the account must be funded on Monday.
The new guidelines take effect from the RDAS holding on Wednesday 5th February, 2014.
All Authorised Dealers are required to ensure compliance, failing which bids submitted shall be disqualified and/or cancelled.
IGBA For: DIRECTOR TRADF & FXCHANGF DFPARTMENT