CBN harps on ethics as FMDQ licenses dealing members:-?

The Central Bank of Nigeria has underlined the importance of effective rules and regulations and self censorship in creating and sustaining the integrity of the over-the-counter securities market.
At the presentation of licences to the first batch of dealing members of the FMDQ OTC Plc, Director, banking supervision, Central Bank of Nigeria (CBN), Mrs. Tokunbo Martins, said FMDQ and its dealing members must abide by the principle of good corporate governance and observe extant laws and regulations to justify their role as a self-regulatory organisation (SRO).
According to her, it is only by acting in good faith, devoid of conflict of interest at all times and introducing best business practices among its members that FMDQ OTC can achieve its goal of strengthening the financial system.
She noted that financial markets play a critical role in the accumulation of capital and the production of goods and services adding that FMDQ is at a vantage position to help Nigeria achieve a world-class financial system.
“In my view, the emergence of FMDQ will greatly enhance the liquidity, transparency and safety of transactions in the inter-bank market for fund intermediation,  foreign exchange dealings, repurchase transaction and government securities,” Martins said.
She called on FMDQ OTC to, among other things, put measures in place to ensure that it achieves its objectives as a SRO.
According to her, FMDQ must put in place an arbitration mechanism for the resolution of disputes between members and other stakeholders just as it must put in place a system for proceeding against members committing breach of the governing norms or articles including provisions for suspension or expulsion.
In his remarks, chairman, FMDQ OTC, Mr. Aigboje Aig-Imoukhuede, who presented licences to 26 dealing members at the event, said it provided an interactive forum for the formal activation of the capital market presence of FMDQ dealing members.
He stressed that the regulation of the OTC market was important, considering previous experience.
According to him, financial markets which are more wholesale in nature have fallen under the provenance of over-the-counter markets which have until recent times been highly unregulated and decentralized.
He noted that the financial crisis of 2007-2008 has however led to greater interest in regulating OTC markets, especially the derivative products.
“The importance of regulation in this market cannot be over-emphasised as FMDQ is a market for all the stakeholders of the OTC market. This ceremony is a demonstration of the importance the OTC market attaches to regulation,” Aig-Imoukhuede said.
The dealing members that received licences included Access Bank, Associated Discount House, Citi Bank, Consolidated Discount Limited, Diamond Bank, Ecobank Nigeria Limited, Enterprise Bank, First City Monument Bank, Fidelity Bank, FSDH Merchant Bank, First Bank, Guaranty Trust Bank, Heritage Bank, Kakawa Discount House Limited, Keystone Bank, Mainstreet Bank, Rand Merchant Bank, Skye Bank, Stanbic IBTC Bank, Standard Chartered Bank, Sterling Bank, Union Bank, UBA, Unity Bank, Wema Bank and Zenith Bank.
Chief executive officer, Nigerian Stock Exchange, Mr. Oscar Onyema, congratulated the dealing members and urged them to adhere to FMDQ’s rules.