Regulatory Alerts2018-05-31 | FMD/DIR/CIR/GEN/09/003Pledge of N1 Billion Worth of Government/CBN Securities for OTC Trade Settlement
The Central Bank of Nigeria is requiring all Deposit Money Banks to pledge N1 billion in government/CBN securities as collateral for OTC trade settlement to enhance efficiency and confidence in the financial markets. Non-compliance or failure to top-up the pledge will result in exclusion from the market. This directive takes effect on June 1, 2018.
Website: www.cenbank.org CENTRAL BANK OF NIGERIA Corporate Head Office, Central Business District, P.M.B. 0187, Garki, Abuja - F.C.T.
Email: financialmarkets@cbn.g Tel: 09 462 36700, 0946236703 Ref: FMD/DIR/CIR/GEN/09/003 May 31, 2018 TO ALL DEPOSIT MONEY BANKS PLEDGE OF N1BILLION (ONE BILLION NAIRA) WORTH OF GOVERNMENT/CBN SECURITIES FOR OTC TRADE SETTLEMENT The Central Bank of Nigeria (CBN) in an effort to enhance efficiency in trading and post-trade activities and build confidence in the financial markets, hereby directs all Deposit Money Banks (DMBs) to pledge collateral of NIbillion (one billion naira) worth of Government/CBN securities for OTC trade settlement.
The pledge requirement is mandatory for all DMBs that wish to participate in OTC Trade Settlement. Lack of provision of the pledge or failure to top-up a pledge when required will result in exclusion from the market.
This circular takes effect from June 1, 2018.
Please ensure compliance.
Dr. Alvan E. Ikoku Director, Financial Markets Department