CBN Direct Banks to Pledge N1.0 Billion Govt Securities for OTC Trade Settlement

May 31, 2018

By Abdulquddus OKELE InvestAdvocate

Lagos (INVESTADVOCATE)-The Central Bank of Nigeria (CBN) on Thursday directed all Deposit Money Banks (DMBs) with effect from Friday June 1, 2018 to pledge collateral of N1.0 billion worth of Government/CBN Securities for Over-the-Counter (OTC) Trade Settlement in its effort to enhance efficiency in trading, post-trade activities and build confidence in the financial markets.

“The pledge requirement is mandatory for all DMBs that wish to participate in OTC Trade Settlement.Lack of provision of the pledge or failure to top-up a pledge when required will rsult in exclusion from the market,” the CBN said in a circular on its official website and signed by Alvan Ikoku, director, Financial Markets Department.

 

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