FMDQ Securities Exchange Limited recently added a new offering to its universe of innovation with the launch of an automated hedging calculator – “Q-Estimator”, to equip market participants with a tool that aids strategic and informed investment decision-making in the Nigerian financial markets, particularly the derivatives market.
The Q-Estimator provides market participants with the opportunity to estimate the total cost to be incurred at the point of purchase of derivatives contracts on the Exchange.
With the launch of this innovation, FMDQ Exchange continued to play a pivotal role in the development of the derivatives market in Nigeria as it positions for the activation of innovative market offerings.
Derivatives are primarily risk management instruments used to hedge against financial exposures from unforeseen and unwanted fluctuations in the rates or prices of an underlying asset. In the global financial system, hedging products are market enablers, allowing businesses and investors around the world to invest freely, effectively hedge their risks and invariably contribute to economic growth.
The Q-Estimator, the first of its kind, aids in trading simulation, wherein market participants simulate positions in the market to estimate profit or loss at predetermined maturity date. The introduction of Q-Estimator will benefit all existing and prospective clients of the FMDQ Exchange-Traded Derivatives market, which include, but are not limited to, banks, fund/asset managers, insurance companies, corporate institutions, foreign investors, and individuals.
The launch of the Q-Estimator builds on the robust capacity development programmes that FMDQ Exchange continues to host, in preparing prospective investors for the launch of its Exchange Traded Derivatives products.
Since activating the FMDQ Derivatives Market Development Project (the “Project”) in 2018, FMDQ Exchange, through the FMDQ Academy (the “Academy”) franchise, has organised a series of bespoke training sessions, benefitting over 2,600 participants, including financial market regulators, financial institutions, relevant market associations, corporates, media practitioners, etc. These pieces of training are specially designed to address the diverse interests represented in the derivatives market and provide a holistic understanding of the market ahead of the imminent launch of the FMDQ Exchange-Traded Derivatives (ETD) market. The Exchange will continue to focus its efforts on facilitating the development of a thriving derivatives market, working assiduously to deliver innovative and critical market development initiatives, with the support of its stakeholders.
YOU SHOULD NOT MISS THESE HEADLINES FROM NIGERIAN TRIBUNE
We will be using Tinubu’s O lu’le, emi lo kan, eleyi for politics — Obasanjo
NIGERIA’S former president, Chief Olusegun Obasanjo, said that the presidential candidate of the All Progressives Congress (APC), Senator Bola Ahmed Tinubu, has introduced new vocabulary into the nation’s political discourse….
Oyo Council Of Obas Backs Makinde’s Second-Term Bid
THE second term bid of Governor ‘Seyi Makinde of Oyo State received a massive boost on Friday, as the Council of Obas in the state declared its support for the governor, stating that the good works being done by the administration across the state should continue beyond 2023.…..
5 Software Applications You Should Master To Be Effective In The Corporate World
There are new software applications that individuals in the corporate world are expected to have mastery of as the world is evolving on a daily basis, and the required skills for individuals interested in or working in the corporate world have also evolved. These software applications have been developed to help make work in the corporate world easier, more effective and more efficient…
How To Minimise Disagreements When Planning A Wedding
A lot of effort goes into planning a wedding. From the choice of event centres to the choice of the bride and groom’s wears, to the picking a colour for invited guests to the decision on the meals to be served for the day, and so on.…
and then