The Central Bank of Nigeria (CBN), on Tuesday, issued a directive mandating all banks in the interbank foreign exchange market to transition to the Bloomberg BMatch system for FX trading.
This implementation, set to go live on December 2, 2024, is designed to boost the operational efficiency and transparency of the nation’s FX market.
According to the CBN, the Bloomberg BMatch platform offers an automated system for matching trades, which is expected to enhance market integrity and facilitate better price discovery.
“This initiative is a significant step toward improving uniformity in trading and ensuring seamless operations among market participants,” Omolara Duke, director of the financial markets department at the CBN, said in a circular to all banks.
To prepare for this transition, the CBN has advised banks to undertake several preparatory steps. These include acquiring the necessary technology to integrate with the Bloomberg BMatch system, training personnel to effectively operate the platform, and adhering to all operational guidelines and standards associated with the system.
According to BusinessDay, the directive underscores the importance of collaboration between banks and Bloomberg representatives to expedite onboarding and resolve any potential technical or operational challenges.
“Banks must act swiftly to align with this new system. It is not just about compliance; it is about elevating the standards of FX trading in Nigeria,” Duke added.
The CBN has also emphasised its regulatory authority in enforcing this directive. It has made it clear that sanctions will be imposed on any institution that fails to comply with the new requirements. This enforcement measure is aimed at ensuring the smooth adoption of the Bloomberg BMatch system and upholding the CBN’s commitment to fostering a more efficient and transparent FX market.
The directive marks a pivotal shift in Nigeria’s FX trading landscape, signalling the regulator’s focus on leveraging technology to enhance market performance and reliability.
