Commodities exchange: Rules review at advanced stage –SEC

The Securities and Exchange Commission (SEC) has stated that the regulatory framework of the incoming commodities exchange which was being reviewed is now at an advanced stage.

The Director General of SEC, Lamido Yuguda, disclosed this to newsmen at the virtual post-Capital Market Committee (CMC) media briefing in Lagos at the weekend.

Yuguda noted that as part of implementing some of the resolutions from the conference, the Technical Committee on Commodities Trading Ecosystem visited major stakeholders and encouraged them to actively participate in the activities of commodities exchanges.

“Furthermore, to ensure the existence of a conducive regulatory framework for the commodities ecosystem, the commission has commenced work on the rules on warehousing and collateral management. These rules, as well as the review of Commodity Exchange’s Rules, are at an advanced stage”, he said. He further restated the SEC’s resolve to increase the attractiveness of the Nigerian capital market and ensure investors’ protection by getting rid of fraudsters in the capital market.

According to him, the Commission would, as quickly as possible, resolve and bring all pending cases of infraction to a close. He said: “In order to increase the visibility and attractiveness of our market, we shall work towards maintaining an environment that is enabled by the appropriate regulatory framework, timely and affordable access to the market, zero-tolerance for infractions, heightened investor confidence and awareness, innovative product development and good governance practices.

“We need to attract the retail and young investors into the market. We need to attract more issuers. We need to demonstrate to investors that when they invest in the capital market, their investment is very secured and in the long term, their returns are really worth their investment, and that we would be able to generate returns that are above inflation. Thus, we will ensure strict enforcement of our rules and regulations, strengthen our enforcement regime and clamp down on illegal operators luring unsuspecting investors with various Ponzi schemes”.