ECX to launch online trade operations
Addis Ababa, 13 December 2013 (WIC) – The Ethiopian Commodity Exchange (ECX) is making preparations to introduce online trading that enables market players to participate directly in trade wherever they are.
According to a statement ECX sent to WIC today, the online trading is envisaged to increase access to ECX and its services; build capacity of various stakeholder groups; and increase efficiency.
The government of Ethiopia is implementing the online trade project in collaboration with Investment Climate Facility for Africa (ICF) in order to enhance the activities of ECX by creating a modern commodity trading platform which will introduce online trading, and establishing Remote Trading Centers in key locations across Ethiopia.
ICF is providing $2.2m of the $3.8m total project cost and the government of Ethiopia through the Ethiopia Commodity Exchange is matching the remaining balance.
ICF Board of Trustee visited ECX trade floor yesterday and got a chance to see how the trading is done and to speak to some of the farmers that have been benefiting from the facility. They also visited the laboratory that grades and certifies the commodities sold at ECX, a crucial factor in ensuring a good quality of commodities.
ECX Chief Executive Officer Anteneh Assefa told the visiting ICF Board of Trustees, “ECX is providing market actors with a trading marketplace, quality and certification, warehousing and electronic warehouse, receipting, trading, market data dissemination, and clearing and settlement, which ensure rust and transparency. With the implementation of the Online Trading System supported by ICF, ECX will become more accessible to its stakeholders, especially the million of small holder farmers.”
The ICF Board of Trustee Co-Chair, Neville Isdell, said “We are happy to be involved in this project. It is symbolic of what is happening all over Africa, in terms of opening u the true market to those concerned –the millions of farmers. We are thrilled to be here at the ECX to see, taste the goods, and get a feel of what the project is doing.”
The introduction of an online trading platform as well as Remote Trading Centers is expected to increase liquidity by facilitating access to ECX as well as build the capacity of various stakeholders to use the ECX effectively.
ECX information technology team is currently working on software design, development and other related functionalities to run a testing online trade platform. Locations have been identified for the establishment of the remote trading centers and the procurement of necessary hardware is well underway.
Buyers and sellers can use the Remote Trading Centers facilities consisting of IT hardware, software, skilled workforce, and infrastructure, to facilitate trading activities.
Capacity building needs of all stakeholders, including members, floor reps, clients, national exchange actors association, ECX Authority, ECX and banks were analyzed and the requisite training was given.
Floor representatives and members will be certified to trade 0nline upon successful completion of a certification exam and passing some preliminary screening.
|< Prev||Next >|