CMA calls for public consultation on commodities exchangesAugust 9, 2019
NAIROBI, Kenya, Aug 9 – Capital Markets Authority will run a public consultation forum on the setting up of Commodities Exchanges in Kenya.
This is in line with CMA’s 10-year to develop regulations in consultation with the National Taskforce on the establishment of a commodities exchange(s).
The implementation of commodities exchange(s) is part of the Northern Corridor Integration Projects (NCIP) initiatives and is expected to contribute to the Government’s Big Four Agenda aspiration of achieving food security in Kenya.
The Regulations provide for the licensing of commodity exchanges, commodity brokers and approval of clearing houses.
The development of a regulatory framework for commodity exchanges will expand the Government’s efforts on enhancing food security, making the full spectrum of agricultural and non-agricultural commodities markets competitive
It will also improve efficiencies in the value chain and meeting international standards.
The period for public consultation runs from 12th August to 12th September 2019.
“Once established, the eco-system of the commodities exchange(s) including a Warehouse Receipts System (WRS) is anticipated to provide a transparent and efficient trading system to facilitate improved export competitiveness,” CMA said in a statement Friday.
The Authority further noted that there are several important stakeholders in the commodities eco-system including but not limited to warehouse operators, commodities brokers.
It also includes farmers and traders’ associations, producers and consumers, financial institutions and other intermediaries.
“The Authority welcomes active public participation to ensure fit-for-purpose and inclusive Commodity Regulations which will be applicable to all commodities.”