Last Updated on Tuesday, 18 October 2011 10:59 Written by Demissew Melese Tuesday, 18 October 2011 10:57
The Ethiopian Commodities Exchange (ECX) is to offer 80 more full membership seats according to members. The seats will be offered to traders who have had limited membership rights so far. The additional seats will be sold in auction in November.
The auction will only be made open to those who have been involved in trading at the ECX.
The exchange sold 150 seats two years ago at an auction that brought in 3.3 million with the minimum price paid for a seat being 270,000 birr. This sum was a significant increase over the 50,000 birr per seat paid for the first 100 seats when the exchange was established in 2007.
There are about 237 traders, recognized as full members of the ECX. A full member of the exchange is able to buy and sell and retains permanent membership rights provided that they continue to pay their membership dues. Limited members, on the other hand, can only either buy or sell a single commodity annually.
ECX membership requirements include 50,000 birr membership fees for founding members, and a 5000 birr annual membership continuance fee. Members are also required to present a non interest bearing cash security deposit for the duration of their membership. The money serves as a guarantee for the exchange. Traders pay 200,000 birr and intermediaries pay 300,000 birr according to this arrangement.
In a related development ECX will add products to the trading floor this year.