FMDQ, Frontclear To Promote Cross-border Money Market Transactions

FMDQ Group Plc and Frontier Clearing Corporation B.V. (Frontclear) have deepened their partnership to promote cross-border money market transactions, enhancing liquidity access, mitigating credit risk, and improving market efficiency in Nigeria and beyond.

Both organisations announced the execution of a landmark partnership agreement and formalised at a signing ceremony held in Amsterdam, The Netherlands.

FMDQ stated that “as market activities and cross-border transactions become increasingly complex, the need for a credible and trusted clearing house has grown even more vital.

“This historic collaboration occurs at a time when there is a growing emphasis on strengthening Africa’s capital markets and promoting innovative financial solutions to support economic development.

“Nigeria’s financial ecosystem, as one of the largest and most sophisticated financial markets in Sub-Saharan Africa is both dynamic and rapidly evolving, making it a strategic focus for partnerships aimed at fostering greater financial inclusion and stability.”

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It added that “recognising these aligned objectives, Frontclear and FMDQ have formed a strategic partnership to enhance liquidity access, mitigate credit risk, and improve market efficiency in Nigeria and the region.

“By leveraging FMDQ Group’s market infrastructure expertise and Frontclear’s risk mitigation capabilities, this collaboration will provide value to domestic financial institutions and attract international investors, with a focus on expanding services to support cross-border repurchase agreements and other secured instruments.”

Speaking on this development, chief executive officer, FMDQ Group, Bola Koko, stated, “this partnership with Frontclear represents a significant leap forward in our mission to transform the financial markets into a vibrant ecosystem, in line with our GOLD (globally competitive, operationally excellent, liquid and diverse) Agenda.

“The introduction of Cross-Border Money Market Products will provide new opportunities for market participants, deepen liquidity, and align our markets more closely with its global counterparts. We are proud to collaborate with a trusted and forward-thinking partner like Frontclear in bringing this vision to fruition.”

Chief executive officer, Frontclear, Philip Buyskes, said that, “given the central role that financial market infrastructure plays in efforts to develop stable and inclusive money markets, we are very pleased to enter into this exciting partnership with FMDQ. Our development ambitions are well aligned, and we look forward to building out our longstanding relationship with FMDQ.”