Provides options for investors
By Olasunkanmi Akoni
AFEX Commodities Exchange Limited, AFEX, Nigeria’s leading private commodity exchange company, has launched the Fair Trade ETC, the first Exchange Traded Commodity (ETC) product listed on the Exchange in Nigeria.
The Fair Trade ETC was launched alongside a series of innovations as well as upgraded digital trading platform ComX. The App will enable Nigerians to invest in the commodity market seamlessly from their mobile device.
The Chief Executive Officer, AFEX Commodities Exchange, Mr. Ayodeji Balogun, who disclosed this to newsmen, said the launch will cushion the burden of Nigerians as the country slumped into a second recession.
According to Balogun, “The Fair Trade ETC is a commodity bundle containing; soybean, maize, and sorghum, in one contract. This enables investors to buy and trade commodities like shares, as well as enjoy a return on investment with lower risks.
“Investors can invest in a unit of the Fair Trade ETC and earn cumulative returns on the three commodities in the product.
“We developed the Exchange Traded Commodity product because we want to create a marketplace where investors of different investment risk appetites can participate in the commodities market through ComX.
“AFEX is committed to creating access to the Nigerian commodity sector for potential investors and smallholder farmers.”
He stated that “Trading through the new version of our digital commodity trading platform; ComX will lower many of the barriers that prevented some investors from investing in commodities – including market education, transaction costs, operational risks, and product availability.”
In addition to the newly listed Fair Trade ETC, ComX also offers spot contracts on its platform; providing more options for investors to diversify their investment portfolio.
‘”ComX will be an invaluable tool for institutional and retail investors, brokers, as well as smallholder farmers, who benefit from the finance unlocked through the Nigerian capital market.
“In addition to the Fair Trade ETC product, new features on ComX include trade insights, improved user and social experience, and an enhanced personalized guide.
“This latest version of the App also provides learning module features that educate users about the fundamentals of various commodities and the procedures involved in trading on the platform.”
AFEX’s securitized commodities listed on the Exchange are regulated by the Nigerian Securities and Exchange Commission (SEC).