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

2019 Q3 CMC Presentation November 2019

3-6 Important Developments 7 Challenges/Steps Taken 8 Issues for CMC Deliberation Table of Contents

Transaction value on the exchange hit NGN1.74 billion year to date with white maize dominating the commodities sold. Business Development – Trading Activities Commodity Q2 Q3 Volume traded YTD Maize - White 8,872.89 1,843.33 Maize - Yellow 92.33 0.00 Paddy Rice - Long Grain 115.03 0.00 0% Soybean 0.00 0.00 0% Ginger 7% 1,308.93 498.90 Sorghum 428.55 186.80 13% Palm Kernel Seeds 20.20 0.00 2% Cocoa 1.47 1.15 3% Total 10,839.41 2,530.18 2% Year on Year volume traded increased by  147% from 1,025MT in Q32018 to 2,530.18 MT in 73% Q32019 Maize-White Maize-Yellow Quarter on Quarter sales volume however  Sorghum-Red Ginger Paddy Rice - Long Grain Soybeans declined by 76% due to seasonality in the Palm Kernel Seeds Cocoa commodities market. Trading Volumes Q1-Q3 2019 3

3 5 1 Settlement: Beta Testing: Improved settlement of Spot Contract: Conducted iterative transactions carried out Development of spot testing of commodities on the exchange contracts to be traded trading platform on the ComX platform scheduled for launch in Q12020 Trading Rules: Preliminary Onboarding: Collaboration: Formation and Development of Increased collaboration development of the mechanism for with stakeholders within trading rules for successful onboarding investors unto and outside the launch of ComX ComX commodities ecosystem . 6 4 2 Important Developments (Contd)

User Journey

Technology Integration

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

VAT Exemption for Commodities Investors 1 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. Discussion Point

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