Published October 17, 2016
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Date: October 17, 2016
Categories: FX market, Markets Exchanges
Keywords: Nigeria, FX, Thomson Reuters, CLOB, FMDQ
Working with local organizations, this move demonstrates Thomson Reuters commitment to growth in Africa and its ability to take existing financial solutions used in G10 countries and apply them in emerging markets
Lagos, Nigeria – Thomson Reuters has launched an FX Central Limit Order Book (CLOB) for the Nigerian market, a move that will enhance liquidity in the FX market and give the Central Bank of Nigeria (CBN) the tools to foster greater freedom in its financial markets.
In launching the CLOB, Thomson Reuters worked closely with both the CBN and FMDQ OTC Securities Exchange (FMDQ), Nigeria’s foremost debt capital and FX securities exchange, with the goal of creating an orderly framework for the Nigerian FX market. The CLOB automates immediate trade reporting for on-shore entities to both the CBN and FMDQ.
“Having an effective global FX trading network requires presence, not just in major, established trading locations, but also in smaller, emerging markets,” said Philip Weisberg, global head of foreign exchange, rates and credit, Thomson Reuters. “Thomson Reuters is committed to further adding liquidity, transparency and seamless trading in the FX market by taking its market-leading FX trading and research capabilities and growing them across Africa and other emerging regions.”
“Working constructively with local financial regulators and other market participants, as well as having a strong understanding of local regulations and customs, is crucial to growth in emerging economies such as Nigeria,” added Kevin Gallagher, head of Africa Financial & Risk business division for Thomson Reuters. “Thomson Reuters was able to draw upon its deep understanding of the local market to work with the CBN and FMDQ in establishing the CLOB at a pivotal time in the country’s economic cycle.”
“This achievement is the culmination of two (2) years of close collaboration between FMDQ, the FMDA, other Nigerian financial market stakeholders, and Thomson Reuters,” said Bola Onadele Koko, Managing Director/CEO of FMDQ. “It represents a step forward for the Nigerian market by delivering significant trading efficiencies over the practices adopted by local traders more than a decade ago, as well as enhanced price discovery. The scale of this success is underscored by the fact that this is the second FX CLOB to be launched on the African continent. FMDQ is committed to the transformation of the Nigerian financial markets through its GOLD Agenda.”
“GOLD” stands for Global Competitiveness, Operational Excellence, Liquidity and Diversity.
Re-disseminated by The Asian Banker