In what amounted to collective endorsement of the Lagos Commodities and Futures Exchange (LCFE), stockbrokers at the weekend commended the Association of Securities Dealing Houses (ASHON) for establishing the specialized exchange, describing it as an initiative that would expand investment opportunities for all stakeholders in the financial market.
They however urged the board and management of the LCFE to put capacity building on the priority list in order ensure professional dealings by the commodity traders and other intermediaries in the capital market ecosystem. Commenting at the stockbrokers’ On – the-Spot assessment of the facilities of the LCFE at the Exchange’s corporate office in Lagos, a Financial Engineer and Chief Executive Officer of Wyoming Capital and Partners, Tajudeen Olayinka, described the initiative as a step in the right direction in view of the global developments in the commodities exchanges.
Olayinka who expressed optimism that the new exchange had potential to operate optimally, however urged the management to stimulate activities in the spot market by establishing relationship between the banks and the commodities merchants so that the banks can support the traders. According to him, spot market has already existed and the ultimate goal is how to make transaction active in the market to enable seamless trading on the Commodities Exchange.
Corroborating him, Chief Executive Officer, Highcap Securities Limited, David Adonri also congratulated ASHON for establishing LCFE and urged the management to put in place necessary facilities for trading in derivatives in order to boost investment opportunities associated with commodities products.
Earlier in his welcome address, the Chairman, LCFE, Chief Patrick Ezeagu explained that as a trade group, ASHON’s decision to floated the Commodities Exchange was to key into the Federal Government’s drive towards the development of Agriculture and Solid Minerals sectors, create wealth for the stakeholders and put Nigeria on the global revenue map and enhance flow of currency exchange into Nigeria.