LCFE commences trading, Sanwo-Olu launches Eko gold coins
The Lagos Commodities and Futures Exchange (LCFE) has been inaugurated for real time trading with the high profile launch of Eko Gold Coins, valued at 100 million pounds in tranches, commencing the much-awaited electronic trading of commodities receipt in Nigeria.
Prior to the inauguration on Thursday, LCFE, had 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.
Speaking at the inauguration ceremony in Lagos, the Special Guest of Honour, Governor Babajide Sanwo-Olu, expressed optimism that LCFE would create limitless opportunities for investors earn steady income from electronic trading of receipts of their commodities products on a transparent and well-regulated market.
Sanwo-Olu, who launched 58 units of spots contracts of Eko Gold Coins, backed by gold, stated that the contracts could be redeemed at any time. He explained that the Coins represented culture, value and inclusivity of Lagos State.
“Today, history is being made with the inauguration of Lagos Commodities and Futures Exchange, its dedicated electronic trading of commodities platform and launch of the proof of concept of the first tranche of special gold called Eko Gold Coins. The 58 coins launched is gold-backed and the special coins can be redeemed at any time. The launch comes at a period that Nigeria is contending with hyper inflation, rising debt and a host of other challenges,” Sanwo-Olu said.
He commended the Board and Management of LCFE for the great vision that has strong potentials to grow the Nigerian economy through commodities ecosystem.
Speaking earlier, the Director-General, Securities & Exchange Commission (SEC), Mr. Lamido Yuguda, who was represented by Executive Commissioner, SEC, Mr. Dayo Obisan noted that the launching of Lagos Commodities & Future Exchange is a giant stride in Nigeria’s capital market.
According to him, “Commodities Exchanges are critical for an enabling investment that is efficient, risk management, price discovery and transactional efficiency. To boost Nigeria’s competitiveness and transactional efficiency, we must develop the commodities trading Ecosystem.”
He noted that the apex capital market regulating body is committed to developing the Commodities Exchange Ecosystem, stressing that SEC is complementing government effort towards developing agriculture and solid minerals sectors as part of the government plan to diversify the nation’s economy.
Earlier in his welcome address, LCFE’s Chairman, Chief Onyenwechukwu Ezeagu noted that LCFE had recorded many successful tradings ahead of its inauguration.
“The Exchange has conducted series of system testsand successful trades through its Trade Matching Engine, and this is a first step in fulfilling our mission to catalyse and transform the Nigerian economy and creating value as well as wealth for all the stakeholders. We have conducted numerous trainings, capacity building and sensitisation sessions to help our stakeholders navigate and harness the full potential of the Nigerian Commodities ecosystem geared towards transforming the Nigerian Economy at large,” he said.
The Exchange’s Managing Director, Akin Akeredolu-Ale, who ascribed the delay in the take-off of the pan African Exchange to advent of COVID-19 pandemic, explained that LCFE operations would enhance double-digit growth of Nigeria’s Gross Domestic Product (GDP) through de-risking of commodities products and transparent price discovery.
“We are proud to be the first Exchange in Nigeria, licensed by the Securities and Exchange Commission to commence trading of gold contracts. The gold aggregators are IAC Global Investment Limited and Tradenet Limited while GTI Capital is the transaction Adviser,” Akeredolu-Ale said.
Akeredolu-Ale had earlier stated that, “We have put in place necessary structures to commence trading as a full-fledged commodities and futures Exchange. Our basic function is to trade electronic receipts. We have addressed the issue of payment and settlement system, depository, registration of Settlement Banks and Dealing Member Firms and certification of Commodities Brokers.”