New Parliamentary Commission Visits EAX
Kigali, Rwanda: A new commission made up of nine parliamentarians visited the Exchange on Thursday, 18th September 2014 to gain a better understanding of its operations. This new commission of budget was put together to review a draft law which was developed by the Capital Markets Authority in Rwanda to regulate commodity and derivative exchange trading. As the draft has been already approved by the Cabinet, EAX invited the government body to its headquarters and conducted a series of presentations for the MPs. The group was welcomed by EAX Country Manager for Rwanda, Dr. Kadri Alfah who shared a progress report on the achievements of the Exchange over the past year, since the soft launch in January 2013.
The EAX Trading Manager and EAX IT Manager demonstrated the ease of electronic trading using our NASDAQ OMX X-stream platform. EAX Value Chain Manager gave a detailed account of the Exchange’s partnership with the Rwanda Ministry of Agriculture to manage 15 warehouses across the country and build the capacity of small holder farmers. The EAX model requires farmers that want to work with the Exchange to be certified members via farmer cooperative groups. These groups are responsible for aggregating their grains and depositing them into Exchange certified warehouses where they will be issued an electronic warehouse receipt by our partners Collateral Management International (CMI). The electronic warehouse receipt system allows the coops store their grains in our warehouses until they’re ready to sell at their most desired price. During this period, the coop can take advantage of collateral financing from our partner banking institutions.
The draft law is still under deliberation by Parliament