LCFE – Lagos Commodities and Futures Exchange

Frequently Asked Questions

Commodities are economical goods and services that have substantial value. They include raw materials such as Agricultural commodities (e.g. Cocoa, Sorghum etc.), Currency, Solid Minerals and Oil & Gas.

A Commodities Exchange is an open and organised market place where ownership titles to specific quantities of identified commodities are traded by registered members for their clients.

The Stock Exchange trades on equities or shares while the Commodities Exchange trades on commodities and their associated instruments.

LCFE provides a trading platform for transparent transfer of ownership titles of commodities. We provide an environment for farmers, warehouse owners, commodity middle men, commodity merchants, traders of currency, Oil & gas and solid minerals to be able to exchange their goods and services. LCFE creates a platform that enhances liquidity in the commodity market, enhances the revenue base of the country and enables commodity traders to manage risk.

Futures are specified contracts traded on an Exchange. Their values depend on an underline assets or commodity like currency, oil & gas etc. (e.g A warehouse receipt’s value is the value of the goods in the warehouse itself, this document can be considered as a futures contract to trade the contents in the warehouse.

No.

Yes.

Yes but only through a registered broker.

LCFE has a list of brokers that can be made available upon request?

Individuals and investors can trade on our platform through registered brokers.

LCFE offers trading members an opportunity to sell or buy their commodities. We provide an opportunity to have quick liquidity and manage risk.

Securities Exchange Commission (SEC Nigeria), the Central Securities Clearing System (CSCS), Association of Stockbroking Houses of Nigeria (ASHON), Association of Bureaux De Change Operators of Nigeria (ABCON), Corporate Farmers International, Cotecna Inspection S.A., Neulogic Solutions Limited.