1. Does the Financial Markets Dealers Association trade in securities?
The Financial Markets Dealers Association does not trade on securities; it is an Association, which provides a rallying point for all treasurers in the industry to make decisions that will deepen the industry.
2. What is the NIBOR?
NIBOR is an acronym, which stands for Nigerian Interbank Offered Rates. NIBOR is not the actual rate traded by the banks, but it serves as a benchmark for the market.
3. What is the NIFEX?
NIFEX is an acronym, which stands for Nigerian Interbank Foreign Exchange Fixing
4. What are Treasury Bills?
It is a marketable, short-term (90days – 1 year) government debt security issued by the Central Bank. It is fully re-marketable at a discount from face value.
5. What is Money Market Dealer?
An institution licensed by the CBN for the purpose of trading in money market instruments for its own account or on behalf of individual and institutional investors.
6. What is an Auction?
A competitive bidding process employed by the CBN to allocate and sell money market instruments.
7. What is a Bid?
An offer to buy a stated face value of money market instrument at an auction.
8. What is a Dutch auction?
A competitive auction in which instruments are sold to the bidders at their quoted winning prices.
9. What is a Discount rate?
An annualized rate of return to maturity on instruments based on their face value.
10. What is a Money Market instrument?
A security whose tenor does not exceed one year.
11. What is a Maturity date
The date on which a bill becomes due and payable.
12. What is tne Primary market?
The market for new issues of money market instruments.
13. What is the Secondary Market?
The market where previously issued instruments are traded.
14. What is a Two-way quote?
A binding market practice whereby both the bid and offer rates are quoted.
15. Who is a Qualified Investor?
A non-money market dealer or customer of a money market dealer who signifies interest in participating in an auction for money market instrument and funds his account with the money market dealer for this purpose. The money market dealers shall carry out the necessary regu¬latory due diligence on their customer.
