FMDQ Exchange suspends security admission services in the Nigerian commercial paper market 

The Nigerian SEC last month released a new set of rules guiding the issuance of commercial papers and determining the eligibility criteria of prospective issuers of commercial papers.

FMDQ in a Jan 2 market notice to stakeholders informed them that the firm has suspended until further notice the processing of new and ongoing applications in respect of prospective Commercial Paper program registration, revisions, and Quotations.

The firm explained further that the suspension extends to applications for which the filing of all relevant documentation has been completed, applications for which the filing of all relevant documentation is yet to be completed, as well as prospective and ongoing CP offers under active CP Programmes.

The Suspension is effective from Dec 30 meaning all ongoing CP offers by prospective Issuers/Registration Members of the Exchange, are currently suspended.

FMDQ is currently in talks with the Commission on the implementation and operationalization of its New commercial paper rule. The synergy between both parties would ensure an effective and efficient transition as well as proper compliance.

The SEC’s new rule stipulates fresh conditions for CP Issuance outlining strict measures to be adhered to by exchanges.

The Nigerian SEC under Emomotimi Agama has been reeling out regulatory frameworks across various sectors ranging from the capital markets to cryptocurrency.