The Lagos Commodities and Futures Exchange (LCFE) will this Thursday, July 28 commence real time trading.
The Securities and Exchange Commission (SEC) which licenced the LCFE has already approved 13 products for trading on the new commodities exchange which is the only one that has the Commission’s approval to trade gold.
Already, the LCFE has conducted a series of test trades on its state-of -the art technology, and other basic infrastructure to drive the processes of operations in line with the global best practices.
Upon the inauguration, the Exchange will kickstart with trading of electronic receipts on the following prime commodities: Oil and Gas, Agriculture, Solid Minerals and Currencies. The Exchange has also put in place necessary infrastructures to trade in derivatives as hedging instruments for investors.
The Exchange has listed several tradeable instruments, registered 40 Dealing Member Firms and certified 128 Commodities Brokers to commence both physical and remote trading after the historic inauguration at its trading floor in Lagos, Nigeria.
The Lagos Commodities and Futures Exchange promises to bring transparency through the operations of commodities exchange through its structures and two-way quote.
Themed “The New Order: Driving Nigeria’s Economy Through The Commodities Ecosystem”, the high-profile inauguration is expected to be attended by top government functionaries, captains of industries and seasoned financial market regulators and operators.
The Exchange’s basic function is to trade electronic receipts. It has also addressed the issue of payment and settlement system, depository, registration of Settlement Banks and Dealing Member Firms and certification of Commodities Brokers.
Also, it has registered other operators in the commodities ecosystem in line with its goal to play a pivotal role in growing the Nation’s Gross Domestic Products (GDP) into double digit.
In Africa, commodities ecosystem is the largest employer of labour, providing platform to deploy resources into the fungible assets that have been de-risked.
The LCFE also plans to start trading about 14 other products by the end of 2023, including Cashew and shea butter by the next harvest season starting September