The FMDQ OTC Securities Exchange has commended the efforts of the Risk Management Association of Nigeria (RIMAN) in championing the professionalisation of risk Management in Nigeria, even as it stressed the need for enhanced risk management in the nation’s money market.
Speaking at RIMAN’s quarterly risk round table programme with the theme: “Derivative Risks: The Role of FMDQ in the Development of the Derivatives Market in Nigeria,” Associate Executive Director, Corporate Development, FMDQ, Ms. Kaodi Ugoji, commended the association of risk managers for its role in creating risk Management advocacy and awareness in Nigeria.
Delivering the welcome address at the event hosted by FMDQ OTC Securities Exchange, she commended RIMAN, saying over the years the association has continued to promote best practice in terms of risk management in Nigeria.
On his part, the President of RIMAN, Mr. Magnus Nnoka, noted that RIMAN was advancing in its effort to extend risk management education to all sectors of the economy and African countries, with the recent establishment of RIMAN Risk Management Institute.
He assured that both institutions will continue to collaborate in ensuring that the knowledge and practice of risk management in Nigeria is continuously promoted, adding that with the existence of the FMDQ OTC Securities Exchanges, derivatives will function better as a product and as a risk transfer mechanism.
Also, the Vice President, Market Architecture, FMDQ, Ms Jumoke Olaniyan, stressed the need to ensure a risk management framework that would ensure the stability of the market.
Olaniyan, who commended the ongoing review of the Companies and Allied Matters Act (CAMA), saying: “What was critical for us in Nigeria was we didn’t have what we call a netting law and so our financial transactions were subject to the bankruptcy laws of Nigeria.
“We didn’t have a law that protected financial market transactions and so what we have done in FMDQ is, along with the president and other stakeholders in the market we conducted a review of the CAMA which didn’t have bankruptcy remoteness law in it.
“We were able to infuse the netting law into the CAMA amendment bill which we were so excited to hear, it has passed through the house and the senate the senate passed it mid-last year and the house passed it January this year so we are literally 80 per cent there and we are just waiting for the president to sign the law and that literally puts us on the international market.”
She noted further that the trading platform is currently looking at introducing two interest rate-based product by the third quarter of 2019. “We are going to be introducing treasury bills and bond features,” she added.