Press Release: ECX to Launch Online Trade Operations
December 12, 2013
|Ethiopia Commodities Exchange CEO, Anteneh Assefa, explains to the ICF Board of Trustees how the Ethiopia Commodities Exchange works
(Addis Ababa, 12 December 2013)-The Ethiopia Commodity Exchange (ECX) is making preparations to introduce online trading that enables market players to participate directly in trade wherever they are.
Online trading is envisaged to increase access to ECX and its services; build capacity of various stakeholder groups; and increase efficiency.
The Ethiopian Government 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 US$ 2.2m of the US$ 3.8m total project cost and the Government of Ethiopia through the Ethiopia Commodity Exchange is matching the remaining balance.
ICF Board of Trustees visited ECX trade floor today 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 Ato Anteneh Assefa told the visiting ICF Board of Trustees, “ECX is providing market actors with a trading marketplace, quality grading and certification, warehousing and electronic warehouse receipting, trading, market data dissemination, and clearing and settlement, which ensure trust and transparency. With the implementation of the Online Trading System supported by ICF, ECX will become more accessible to its stakeholders, especially the millions of small holder farmers.”
The ICF Board of Trustees Co-Chair, Neville Isdell, “We are happy to be involved in this project. It is symbolic of what is happening all over Africa, in terms of opening up 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 Centres 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 Centre 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 analysed and the requisite training was given.
Floor representatives and members will be certified to trade online upon successful completion of a certification exam and passing some preliminary screening.
For more information about ECX and ICF visit http://www.ecx.com.et/ and http://www.icfafrica.org/