2019 Q3 CMC Presentation November 2019 3-6 Important Developments - - PowerPoint PPT Presentation

November 2019 2019 Q3 CMC Presentation

Table of Contents

Important Developments

3-6

Challenges/Steps Taken

7

Issues for CMC Deliberation

8

3

Business Development – Trading Activities

• Year on Year volume traded increased by

147% from 1,025MT in Q32018 to 2,530.18 MT in Q32019

• Quarter
• n

Quarter sales volume however declined by 76% due to seasonality in the commodities market. Commodity Q2 Q3 Maize - White

8,872.89 1,843.33

Maize - Yellow

92.33 0.00

Paddy Rice - Long Grain

115.03 0.00

Soybean

0.00 0.00

Ginger

1,308.93 498.90

Sorghum

428.55 186.80

Palm Kernel Seeds

20.20 0.00

Cocoa

1.47 1.15

Total

10,839.41 2,530.18

Trading Volumes Q1-Q3 2019

73% 2% 3% 2% 13% 7% 0% 0%

Volume traded YTD

Maize-White Maize-Yellow Sorghum-Red Ginger Paddy Rice - Long Grain Soybeans Palm Kernel Seeds Cocoa

Transaction value on the exchange hit NGN1.74 billion year to date with white maize dominating the commodities sold.

Important Developments (Contd)

2

Preliminary Onboarding: Development of mechanism for

• nboarding investors unto

ComX Beta Testing: Conducted iterative testing of commodities trading platform scheduled for launch in Q12020

1

Spot Contract: Development of spot contracts to be traded

• n the ComX platform

Trading Rules: Formation and development of the trading rules for successful launch of ComX

4 6

Collaboration: Increased collaboration with stakeholders within and outside the commodities ecosystem . Settlement: Improved settlement of transactions carried out

• n the exchange

3 5

User Journey

Technology Integration

Challenges and Solutions: Away from the Status Quo  Redesign of commodities pricing methodology using reference locations selected based on market signals  Restructuring of exchange membership structure to accommodate all classes of investors; especially retail clients  Pricing of commodities to capture differences in investors’ interests and market peculiarities.  Narrow scope of eligible investors capable of participating on the commodities exchange. Challenges Solutions

Discussion Point

VAT Exemption for Commodities Investors

In line with the request to roll over the suspension of VAT payments on investment in other asset classes, it would be of benefit to the capital market if the VAT exemption is extended to investments in commodities as well.

1

Thank You