The Securities and Exchange Commission (SEC), has finally approved the commencement of operations at the Lagos Commodities and Futures Exchange (LCFE). It will operate as a full-fledged commodities and futures market.
The development follows the initial approval-in-principle granted by the commission.
Nairametrics understands that the LCFE is being promoted by the Lagos State Government and Association of Securities Dealing Houses of Nigeria (ASHON).
A letter of approval, signed by SEC’s Head of Department, Registration, Exchange, and Market Infrastructure, Emomotimi Agama, on behalf of the Acting Director-General of SEC, Mary Uduk, has it that the final approval took effect on Friday, June 14th, 2019.
In the approval letter addressed to LCFE’s Managing Director and Chief Executive Officer, Akin Akeredolu-Ale, SEC stated the following;
“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.”
With the latest approval, the commodities and futures market is set to leverage the talents it has assembled to commence operations as an influential brand, established to unlock its true potential in the financial market.
How LCFE plans to trade: The four broad ranges of assets that the LCFE is aiming to trade include -agricultural commodities, currencies, solid minerals, and oil and gas. These assets promise to open up enormous wealth across the country.
LCFE plans to trade on four broad ranges of assets that promise to open up enormous wealth across the country.
Exciting news for stockbrokers? Based on the reaction of Chief Patrick Ezeagu, the Chairman of the Association of Securities Dealing Houses of Nigeria (ASHON), one can tell how excited stockbrokers are following the final approval.
“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.”