NIGERIA’S apex capital market regulator, Securities and Exchange Commission (SEC) has finally approved the commencement of operations of the Lagos Commodities and Futures Exchange (LCFE) as a full fledged commodities and futures market.
The final approval followed the initial approval-in-principle granted by the Commission to LCFE. With the latest approval, the commodities and futures market is set to leverage the assembled best talents to commence operations as an influential brand, established to unlock its true potential in the financial market.
LC FE plans to trade on four broad ranges of assets that promise to open up enormous wealth across the country. These include agricultural commodities, currencies, solid minerals and oil and gas. The LCFE is being promoted by the Lagos State Government and Association of Securities Dealing Houses of Nigeria (ASHON).
Besides, SEC has also approved the appointment of the top management team to drive the operations of the new Exchange.
According to a letter of approval, signed by SEC’s Head of Department, Registration, Exchange and Market Infrastructure, Mr. Emomotimi Agama, on behalf of the Acting Director General of SEC, Ms Mary Uduk, the final approval took effect from June 14, 2019.
“In the exercise of the power conferred on it by the Investment and Securities Act (ISA) No 29 of 2007 and the rules and regulations made there-under, the Commission has granted your company, registration to perform the function of a Commodities and Futures Exchange in the Capital Market with effect from June 14, 2019. By virtue of this registration, you are authorised to perform the function for which you are registered,” SEC stated in the approval letter addressed to LCFE’s Managing Director and Chief Executive Officer, Mr Akin Akeredolu-Ale.
Chairman, Association of Securities Dealing Houses of Nigeria (ASHON), Chief Patrick Ezeagu said SEC has shown a commitment to open up the commodities market ecosystem for ASHON’S initiative of floating LCFE to come to fruition.
“Congratulations to the market, the operators and the economy. We are really grateful to SEC, shareholders, and all our partners-Nigerian Stock Exchange (NSE), Central Securities Clearing System (CSCS), technology providers and all others that collaboratively birthed this new baby,” Ezeagu said.
As a collective endorsement of the new organization which has opened more opportunities for diversification of their businesses, stockbrokers had early this year converged at the corporate office of LCFE for on-the-spot assessment and appreciation of the facilities for trading. They commended ASHON for the initiative and registered their loyalty to the new trading platform. Also, many professional and technical groups have been identifying with the management of LCFE.
Analysts said the Nigeria’s capital market was long overdue for a thriving commodities exchange in view of the ongoing occasional shocks in the international oil market and the federal government’s resolve to give agriculture a pride of place as the country’s major income driver.
The top management team of LCFE include Mr Ige Lawrence Ifedayo, the Compliance Officer while Dr Umunnaehila Allwell Iheanyi and Mr Omowale Rotimi Solomon are Principal Officers.