Lagos Commodities and Futures Exchange (LCFE) has concluded arrangements to commence real-time trading as part of plans to inaugurate the Pan-African Commodities Exchange.
This will begin on Thursday, July 28, 2022, at its trading floor in Niger House, Lagos LCFE said in an e-mailed statement on Monday.
As a build-up to that, the exchange said it 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.
According to the statement, LCFE has listed several tradeable instruments, registered 40 Dealing Member Firms and certified 128 Commodities Brokers to commence both physical and remote trading after the inauguration.
Also, the Securities and Exchange Commission (SEC) has approved 13 products for trading on the Exchange. “The exchange is the only one that has the commission’s approval to trade gold and it is open to listing gold if any company that meets the requirements,” it said.
“Upon the inauguration, the exchange will kick-start 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,” it said.
This is a significant development for Nigeria’s agricultural and manufacturing sectors, says Dr. Lizzie-Kings-Wali, Chief Executive Officer of Blackstone Capital.
“The full launch of LCFE and ongoing restructuring of other commodities exchange like the Nigerian Commodity Exchange, which is currently being recapitalised and restructured by the Central Bank of Nigeria in conjunction with other stakeholders like the Ministry of Agriculture, would significantly help to formalise the agricultural sector,” she said.
