The Securities and Exchange Commission (SEC) has finally endorsed the application of Lagos Commodity and Futures Exchange (LCFE) being promoted by the Association of Securities Dealing Houses of Nigeria (ASHON) to operate as a full fledged commodities and futures market.
As a prelude to the historic approval, the Commission had earlier granted the LCFE, approval-in-principle. By the new approval, the commodities and futures market is set to leverage the assembled best talents to commence operations as an influential brand, established to unlock its true potential in the financial market.
Besides, SEC has also approved the appointment of the top management team to drive the operations of the new Exchange.
According to a letter of approval, signed by SEC’s Head of Department, Registration, Exchange and Market Infrastructure, Emomotimi Agama, on behalf of the acting Director General, Mary Uduk, the final approval takes effect from June 14, 2019.
Part of the approval letter addressed to LCFE’s Managing Director and Chief Executive Officer, Mr Akin Akeredolu-Ale states that ” In the exercise of the power conferred on it by the Investment and Securities Act (ISA) No 29 of 2007 and the Rules and Regulations made there-under, the Commission has granted your Company, registration to perform the function of a Commodities and Futures Exchange in the Capital Market with effect from June 14, 2019. By virtue of this registration, you are authorised to perform the function for which you are registered.”, the statement stated.
Responding to the approval, ASHON’s Chairman, Patrick Ezeagu said “ SEC has shown a commitment to open up the commodities market ecosystem for ASHON’S initiative of floating LCFE to come to fruition. Congratulations to the market, the operators and the economy . We are really grateful to SEC , shareholders, and all our partners NSE, CSCS, technology providers etc that collaboratively bithed this new baby.”
As a collective endorsement of the new organization which has opened more opportunities for diversification of their businesses, stockbrokers had early this year converged at the corporate office of LCFE for on-the-spot assessment and appreciation of the facilities for trading. They commended ASHON for the initiative and registered their loyalty to the new trading platform. Also, many professional and technical groups have been identifying with the management of LCFE.
The cheery news of the approval has elicited jubilation among stockbrokers with torrents of congratulatory messages to ASHON and the management of LCFE. Analysts were quick to say that the Nigeria’s capital market was long overdue for a thriving commodities exchange in view of the ongoing occasional shocks in the international oil market and the federal government’s resolve to give agriculture a pride of place as the country’s major income driver.
The top management team of LCFE include Ige Lawrence Ifedayo, the Compliance Officer while Umunnaehila Allwell Iheanyi and Omowale Rotimi Solomon are Principal Officers.
