Commodities trading: Stockbrokers seek capacity building
Stockbrokers have urged the board and management of the Lagos Commodities and Futures Exchange to put capacity building on its priority list in order to ensure professional dealings by the commodity traders and other intermediaries in the capital market ecosystem.
The stockbrokers, who endorsed the LCFE during an on-the-spot assessment of the facilities of the exchange in Lagos, commended the Association of Securities Dealing Houses for establishing the specialised exchange while describing it as an initiative that would expand investment opportunities for all stakeholders in the financial market.
The Chief Executive Officer, Wyoming Capital and Partners, Mr Tajudeen Olayinka, described the LCFE as a step in the right direction in view of the global developments in commodities exchanges.
Olayinka, who expressed optimism that the new exchange had the potential to operate optimally, urged the management to stimulate activities in the spot market by establishing a relationship between banks and the commodities merchants so that the banks would support the traders.
According to him, the spot market has already in existence and the ultimate goal is how to make transactions active in the market to enable seamless trading on the commodities exchange.
The Chairman, LCFE, Chief Patrick Ezeagu, explained that, as a trade group, ASHON’s decision to float the commodities exchange was in a bid to key into the Federal Government’s drive towards the development of agriculture and solid minerals sectors.
He said it would also help to create wealth for the stakeholders, put Nigeria on the global revenue map and enhance flow of currency exchange into the country.
Ezeagu said, “The stockbrokers are the major players in this exchange. Without them, trading will be very difficult, if not impossible. We have secured regulatory approval to commence trading on four asset classes, which are agricultural commodities, currencies, solid minerals and oil and gas.
“The final licence is expected to be granted by the Securities and Exchange Commission any moment from now. We are also working to finalise on our technology partnerships with our vendors.”
The Chief Executive Officer, LCFE, Mr Akin Akeredolu-Ale, said the LCFE would not re-invent the wheels but leverage the skills of its members of staff to position the new exchange as a point of reference.
He stated that capacity building for the LCFE staff, stockbrokers and the accredited capital market correspondents would be accorded priority to ensure professionalism.