Members of the Ghana Securities Industries Association (GSIA) have indicated their aspiration to see the full enforcement of a robust regulatory and legal framework that will stimulate trading and participation of all market actors on the National Commodity Exchange (GCX) when it becomes operational.
This was made known when the GCX Project team met with members of GSIA, the umbrella body for brokerage firms in the country in a one-day awareness and sensitisation programme held at the Ministry of Trade and Industry in Accra.
The event was to update stakeholders in the commodity value chain of the status of the operations of the project.
The sensitisation programme was to share information on the membership structure and recruitment design and opportunities open to market actors when GCX becomes operational.
Leading discussions at the sensitisation programme, the Acting Project Director, Mr. Robert Dowuona Owoo thanked the brokers for their participation explaining that the objective of the GCX was to transform the lives of Ghanaians in general and those who participated in the agriculture value chain in particular.
He disclosed that a concept of partial mandating was being explored to ensure that the Exchange had the needed volumes so as to make trading attractive to members.
According to Mr. Owoo, the partial mandating concept would encourage sustained active participation of market actors on the Exchange.
The partial mandating concept would allow the Regulator from time to time to require that certain commodities or volumes of commodities be traded on an exchange.
This policy, if adopted, would also compel institutions that made purchases of huge volumes of all commodities of the quality that GCX will trade in the future, to be executed on the exchange through brokers.
Delivering a presentation on the membership structure and requirements design for the GCX, the Membership Manager of the GCX, Mr. Richard Ankrah explained that there were five categories of membership namely, institutional, trading, brokering, clearing and associate.
He clarified that the categorisation of the membership structure had been done to enable all market actors to participate in GCX activities through any category as part of the all-inclusiveness policy of the Exchange.
Mr. Ankrah elucidated that participation by brokerage firms on the Exchange would afford them the opportunity to increase their clientele in terms of access to aggregators, farmers, traders, processors while ensuring trade facilitation which would enable them to execute orders to buy or sell commodity contracts on behalf of clients and charging a commission.
He also hinted that becoming members also afforded an opportunity to own property rights to membership seats in the trading pit, which could increase in value over time thereby making it possible for broking members to also trade on their own accounts to make profits.
Mr. Ankrah also urged representatives of the brokerage firms to consider investment opportunities in other areas of the GCX eco-system.
By Times Reporter