Financial Markets Dealers Quotations

Financial Market Trading Standards

T.bills Standards
1 - 364 1,000.00 0.50 N/A Firm for Trade Any volume in Issue T+2
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Outline

PRIMARY MARKET

PMA

OMO Dependent on CBNs liquidity requirements 1.00 Single-bid Discount T+0 CBN

Tenor (days)

91, 182, & 364

Minimum Bid Volume (mm) Auction System Basis Settlement Settlement Platform/Agent Settlement Basis

0.10 Multiple-bids Discount T+1

SECONDARY MMD v MMD MARKET Tenor (DTM) 8 - 364 7 Standard 250.00 Volume (mm) Spread (:k) 0.25 0.25 Two-Way One-Way Basis of Trade Quote Quote Quotation Status Settlement Settlement Platform/Agent Settlement Basis

CBN v MMD

Firm for * Indicative Trade

50bn **< 50bn in Market in Market T+2

CSCS & CBN Delivery v Payment

Delivery v Payment

Notes: The CBN can ask for quotes on medium (5bn) and large (10bn) volumes, however the MMD can insist on standard volumes (2bn) * The quotation for t.bills with less than 7 days are not firm quotes. A caller must express his interest either to buy or sell in order to receive a firm one-way quote ** All transactions on T.bills with less than 50bn in available-in-market volume are done on one-way quote with both parties consent

FGN Bonds Trading Standards

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Outline

NORMAL TRADING FGN BONDS

Tenor Yr(s)
Spreads (:k) Mode of Trade Quotation Status

2-3
0.15

5, 10 & 20
0.30

Two-Way Quote Firm For Trade 30bn in issue

mm: Million, : Naira, bn: Billion, Yr(s): Year(s), TTM: Term to

LEGEND : CBN: Central Bank of Nigeria, Maturity

FGN Bonds Trading Standards../2

Parameter
Standard Trading Volume (mm) Quotation Price Accrued Interest

Outline

Previous (Pre-2009)
100.00 Clean Day Convention (Actual/Actual) Dirty Price (Clean Price + Accrued interest) (T+2) i.e. Transaction Day + 2 Business Days CSCS & CBN Delivery v Payment (DVP)*

Current
Effective, 2-Oct- 09

50.00 & 100.00 Clean Day Convention (Actual/Actual) Dirty Price (Clean Price + Accrued interest) (T+2) i.e. Transaction Day + 2 Business Days CSCS & CBN

Settlement Amount

Settlement

Settlement Platform/Agent

Settlement Basis

Delivery v Payment (DVP)*

mm : Million, : Naira,

Note: Currently, 50mm quoted for Bonds 30bn < 75bn volume in issue, whilst 100mm for bonds above 75bn

LEGEND : CBN: Central Bank of Nigeria, bn: Billion, CSCS: Central Securities Clearing System *Not true DvP

Yr(s) : Year (s )

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FX Trading Standards
CBN PRIMARY FX MARKET STANDARDS
Participants Auction Type Auction Days Authorised Dealers RDAS - SPOT Monday & Wednesday Inter-bank Standard Trading Volume (US$ 000) Maximum Spread (:k) 500 Settlement Net Open Position Limit At Bank's Discretion 1 Tranche per Auction Not Applicable Basis of Trade Settlement Agents Sources of Funds 500 0.10 T+2 1% of SHF Two-Way Quote CBN/Correspondent Banks Autonomous
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Outline

FX SECONDARY MARKET TRADING STANDARDS

Transaction Fee
Settlement Minimum Bid/Cash Disbursement Volume (US$ 000) Maximum Bid/Cash Disbursement Volume (US$ 000) Bid Submission Benchmark Tenor

1%
T+2

NOTE: Autonomous sources include oil & oil servicing companies, government agencies, exporters, embassies, individuals etc. Forward rate is calculated as addition of forward point and WASR of the just concluded RDAS - SPT of the day * Amount sold is determined by the CBN. **The two-way quotes are not live quotes. A caller must express his interest to buy or sell in order to receive a firm one-way quote ***Authorised Dealers are to submit a single bid on a single tenor, stating only forward points which could be a premium or discount on the WASR of that day

Global Competitiveness . Operational Excellence . Liquidity . Diversity