Regulatory Alerts2016-07-08 | FMD/DIR/GEN/CIR/07/002Onboarding Corporates on FMDQ-Advised FX Trading and Surveillance Systems
The Central Bank of Nigeria (CBN) is directing all authorized dealers and corporate institutions to execute FX-related trades through the FMDQ-advised FX Trading, Auction, and Surveillance Systems starting August 1, 2016, to promote transparency and professionalism in the Nigerian FX market. This system will be deployed to corporates that meet FMDQ's onboarding eligibility criteria and have been pre-approved. Strict compliance with this directive is expected from all authorized dealers and corporate institutions operating in the Nigerian FX market.
CENTRAL BANK OF NIGERIA Corporate Head Office, Plot 33, Abubakar Tafawa Balewa Way, Central Business District, Cadastral Zone, P.M.B. 0187, Garki, Abuja - F.C.T.
Website: www.cenbank.org Email: financialmarkets@cbn.gov.ng Tel: 09 462 36700, 0946236703 FMD/DIR/GEN/CIR/07/002 JULY 8, 2016 CIRCULAR TO ALL AUTHORISED DEALERS ONBOARDING CORPORATES ON FMDQ-ADVISED FX TRADING AND SURVEILLANCE SYSTEMS In furtherance of its efforts in engendering transparency and professionalism in the Nigerian foreign exchange market, the Central Bank of Nigeria (CBN) hereby directs that all FX-related trades by Authorised Dealers (Banks) and Corporate Institutions in the Nigerian FX market, with effect from Monday, August 1, 2016, must be executed through the FMDQ-advised FX Trading, Auction & Surveillance Systems.
Therefore, all Authorised Dealers (i.e. Banks) are to execute all FX trades among themselves and with their clients (i.e. Corporate Institutions) through the FMDQ-advised FX Systems. The deployment of the FMDQ-advised FX Systems will only be to those Corporates that have been screened and pre-approved by FMDQ in line with its on-boarding eligibility criteria.
All Authorised Dealers and Corporate Institutions operating in the Nigerian foreign exchange market are to ensure strict compliance.
Dr. Alvan E. Ikoku Director, Financial Markets Department