₦airaland Forum

Welcome to this thread where we talk about all things Commodities - What they are, How to trade them, Why we should trade them, When to trade them.
I have searched Nairaland for information on this topic and this is the very first one. So let us make it count.

Many folks know a lot about equities, fixed-income instruments, bonds even foreign instruments like Options but not a lot of information is readily available about trading Commodities as investors/traders in the Nigerian space.
That is what we will aim to do with this thread.

Invite your Macro economic gurus over - we will need them.

@ojesymsym
@rabbidoracle
@emmanuelewumi
@ymcy56

Do we have a functional commodity exchange in Nigeria?

Yes, AFEX is a private and functioning exchange. The other three exchanges, from my research, are dysfunctional.

emmanuelewumi:
Do we have a functional commodity exchange in Nigeria?

thesilentone:
Yes, AFEX is a private and functioning exchange. The other three exchanges, from my research, are dysfunctional.

Will the commodity transaction reflect on my CSCS statement of account.



Or can I move the commodity transaction to my CSCS statement of account.


I usually move the bonds bought through the bank to my CSCS

So far, one of the links I have found between AFEX and CSCS is this interview in Business Day with CSCS MD. Link below.

Excerpts:
"CSCS is what is called the Central Security Depository (CSD). We do the clearing and settlements of transactions in the Nigerian capital market. What that means is that, if for example, you want to buy a share of one company, we may have never met, we don’t know each other from Adam so how do you trust me? The market has been created in such a manner that you trust it. When that transaction happens, the entity that moves the shares of the company you bought to your account and moves your cash into the seller’s account is the CSCS. It is a trusted party in the middle; it is unknown because things work efficiently. CSCS exists but you don’t see it.

Central Security Depository keeps in a secured manner, all the shares traded on the stock exchanges in the country whether it is NASD which is over the counter (OTC), or NSE, FMDQ or Nigerian Commodity Exchange or the new AFEX which will soon go live."

https://businessday.ng/interview/article/we-are-the-custodian-of-all-the-shares-that-have-been-dematerialised/

More to your question, I don't know the answer but this is what I have found. I might send them an email to verify.

emmanuelewumi:
Will the commodity transaction reflect on my CSCS statement of account.



Or can I move the commodity transaction to my CSCS statement of account.


I usually move the bonds bought through the bank to my CSCS

Following...

You are welcome.

Please feel free to contribute as we are all deepening our understanding of the Nigerian/African space.

otomatic:
Following...

Nice. Add osidima too, he is good with data analytics

thesilentone:
Welcome to this thread where we talk about all things Commodities - What they are, How to trade them, Why we should trade them, When to trade them.
I have searched Nairaland for information on this topic and this is the very first one. So let us make it count.

Many folks know a lot about equities, fixed-income instruments, bonds even foreign instruments like Options but not a lot of information is readily available about trading Commodities as investors/traders in the Nigerian space.
That is what we will aim to do with this thread.

Invite your Macro economic gurus over - we will need them.

@ojesymsym
@rabbidoracle
@emmanuelewumi
@ymcy56

@thesilentone thanks for opening this thread. I am a silent observer on NSEMPA, I am equally following this thread.

You are welcome.

dangle:
@thesilentone thanks for opening this thread. I am a silent observer on NSEMPA, I am equally following this thread.

thesilentone:
Yes, AFEX is a private and functioning exchange. The other three exchanges, from my research, are dysfunctional.

Where is the AFEX located?

Abuja. You can check their website. They are like NGX.

I have no personal relationship with them.

TreasureHunter:
Where is the AFEX located?

thesilentone:
Abuja. You can check their website. They are like NGX.

I have no personal relationship with them.

Ok