Lagos commodity exchange gets approval to begin operation

Lagos commodity exchange gets approval to begin operation

Lagos commodity exchange gets approval to begin operation

The Lagos Commodity and Futures Exchange says it has received the Securities and Exchange Commission’s approval-in principle to commence operations.

The exchange, which is being promoted by the Lagos State Government and the Association of Stockbroking Companies of Nigeria, said in a statement on Saturday that it might commence operations soon.

It said it was expected to commence operations after the ongoing installation of its state-of-the-art technology, which it said was at the concluding phase.

The acting Managing Director/Chief Executive Officer, Mr Akin Akeredolu-Ale, described the approval as a welcome development.

According to him, it shows the level of dynamic capacity of the apex regulator to empower capital market operators to play a pivotal role in capital formation and wealth creation.

Akeredolu-Ale stressed the need for capacity building in order to improve efficiency and service delivery.

He explained that the trading floor of the new corporate office of LCFE was already wearing a new look as trading technologies, including control room and servers, were being installed.

He said, “There are strong indications that capital market professionals, including capital market correspondents, will undergo a new phase of strategic training model by the LCFE as part of the preparations.”

The Chairman, ASHON, Chief Patrick Ezeagu, while commenting on the development, expressed gratitude to SEC for the opportunity.

He noted that ASHON had been working very hard to complete the installation of the technology in order to commence trading, adding that the core objective was to develop the much-needed capacity that would operate in the exchange.

Ezeagu stated that every aspect of the capital market had been undergoing changes and that there was a need for the human capital that would operate in the new environment to possess the needed skills.

He said, “The market is expanding and the various kinds of markets we are operating are equally changing as well.  From the purely equities market, we are moving into bonds and from bonds, we are thinking about commodities and derivatives.

“There is lack of capacity by members of ASHON and we have decided that the best approach is to build capacity from within. We must key into these changes that are taking place to play our role as intermediaries within the market space.”

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