FMDQ Exchange has announced the temporary suspension of security admission services in Nigeria’s commercial paper (CP) market in response to the latest regulatory framework introduced by the Securities and Exchange Commission (SEC).
In a market notice issued on January 2, 2025, FMDQ disclosed that the suspension, effective from December 30, 2024, will remain in place until further notice. This decision affects the processing of new and ongoing applications related to commercial paper program registrations, revisions, and quotations.
The suspension impacts applications at various stages, including those where documentation is fully completed, partially filed, or still pending submission. It also covers all ongoing and prospective CP offers under active CP programs on the Exchange.
The move comes after the SEC released a new set of rules last month governing the issuance of commercial papers and establishing stricter eligibility criteria for prospective issuers.
FMDQ emphasised that the suspension is a temporary measure aimed at ensuring compliance with the updated regulatory requirements and maintaining market integrity. The exchange reassured stakeholders that it remains committed to aligning its operations with the new SEC guidelines and will provide further updates in due course.
Market observers anticipate that this pause will provide clarity on the application of the new rules while ensuring the smooth resumption of commercial paper admissions in the near future.
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