Over-the-Counter deals worth about N200 billion in Nigeria’s fixed income market became murky yesterday as dealers could not settle transactions in FGN bonds and Treasury Bills (T-Bills).

The cause, was learnt, came from the Scripless Securities Settlement System (S4) and Real-Time Gross Settlement (RTGS) platforms of the Central Bank of Nigeria (CBN) which failed to work.

Analysts said the disappointing outing yesterday could have cost dealers 65 per cent in volume of transactions, expressing worries as it comes barely six months after the CBN became the depository for both FGN bonds and Treasury Bills.

Many market participants had expressed worries about the implication and challenges CBN would face by assuming such depository role.

OTC-traded Federal Government of Nigeria (FGN) bonds started settling on the Scripless Securities Settlement System (S4) of the CBN on December 20, 2013.

The apex bank had claimed that the platform would trigger rapid transformational developments in the financial markets, allowing real-time settlements of transactions in the capital, commodity and foreign exchange markets.

“The S4 and RTGS platforms of the CBN have not worked today (that is yesterday) despite every effort. There is therefore no way to settle any fixed income (T-Bills and FGN bonds) transactions in the market today (that is yesterday),” said a market source.

Source: Businessday

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