Lagos Exchange to trade on forex

                           Ambode Lagos

The Lagos Commodities and Futures Exchange (LCFE) is getting set for trading in four broad ranges of assets that promise to open up enormous wealth across the country.

Lagos Commodities and Futures Exchange (LCFE) Chairman Patrick Ezeagu, at the weekend, said the LCFE has received regulatory approval to begin trading in four classes of assets – agricultural commodities, currencies, solid minerals and oil and gas.

The LCFE is being promoted by the Lagos State government and the Association of Securities Dealing Houses of Nigeria (ASHON).

Ezeagu, who doubles as ASHON president, said the LCFE was awaiting the final operating licence from the Securities and Exchange Commission (SEC). The promoters have secured all preliminary approvals.

Ezeagu said: “We have secured regulatory approval to commence trading on four asset classes: agricultural commodities, currencies, solid minerals and oil and gas. The final licence is expected to be granted by the Securities and Exchange Commission (SEC) any moment from now. We are also working to finalise on our technology partnerships with our vendors.”

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He said that ASHON’s decision to float the Commodities Exchange was in line with the Federal Government’s drive towards the development of agriculture and solid mineral sectors and creating wealth for all stakeholders.

He pointed out that the LCFE will put Nigeria on the global revenue map and enhance foreign currency exchange inflow.

Conducting stockbrokers around the facilities of the LCFE during an on-the-spot assessment at the weekend, Ezeagu noted that stockbrokers are the major players in the Exchange as without them, trading will be almost impossible.

LCFE Chief Executive Officer Mr. Akin Akeredolu-Ale, who made an elaborate presentation on the operations of the Exchange, explained that availability of dealing members would enhance operations on the Exchange.

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He said the LCFE would not re-invent the wheels but leverage the staff’s skills and competencies to position the new Exchange as a point of reference.

Stockbrokers endorsed the LCFE, describing it as an initiative that would expand investment opportunities for all stakeholders in the financial market.

They, however, urged the board and management of the LCFE to prioritise capacity building to ensure professional dealings by the commodity traders and other intermediaries in the capital market ecosystem.

Chief Executive Officer, Wyoming Capital and Partners, Tajudeen Olayinka, described LCFE as a step in the right direction, in view of the global developments in the commodities exchanges.

He said the new Exchange had the potential to operate optimally but urged the management to stimulate activities in the spot market by establishing relationship between the banks and the commodities merchants so that the banks can support the traders.

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The Chief Executive Officer, Highcap Securities Limited, David Adonri, praised ASHON for establishing LCFE and urged the management to put in place facilities for trading in derivatives to boost investment opportunities associated with commodities products.

The Group Managing Director, Chams Plc, Femi Williams, said that everything about the Exchange would be paperless.

He explained that identity management would be deployed by Chams to boost valuation of participants in the market.

“Straight Through Process (STP) would be adopted for transaction, there shall be a feedback mechanism through trade alert. Participants would be grouped and there shall be rules governing trading on the asset classes,” Williams said.

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