Their identities are confidential but bidding companies know the value of ECX seats
By Besufkad Dawit |
Three companies, and no individual persons, are vying for the acquisition of the 19th seat which the Ethiopian Commodity Exchange (ECX) is putting up for sale in a tender announced on July 9, 2015.
The ECX has 346 members, of which 18 have sold their membership seats. The original members acquired the seats for 50,000 Br. The 17th seat was transferred for 1.6 million Birr in an auction held on May 7, 2015 while the 18th was sold for 1.9 million Birr.
A membership seat in the ECX is a secure and transferable right to trade on the Exchange. Membership seats give the right to any eligible individual or organisation to do business at the Exchange.
There are two classes of membership at ECX – trading and intermediary. Trading members trade on their own account while intermediary members may trade either on their own account or on behalf of others.
Clients are usually sellers or buyers of commodities who deal at the Exchange through a qualified intermediary member.
Previously, bid opening was open to all but in this latest tender only bidding companies were allowed access.
Apparently, the transfer of seats is becoming profitable with seats increasing in value day after day, Senior Communications Manager at ECX, Tewodros Assefa explained.
“We are working on a five-year strategic plan to ensure the vision of ECX. The plan will address new membership seats and will provide an opportunity for many,” he added.
The money from the sale, minus 30pc tax, all goes to the seller of the seat, who pays for the media announcement of the bid to sell the seat.
Established in 2007 and commencing trading operations in 2008, ECX has 65 warehouses with the capacity of accommodating 300,000tn.
The chief trading items at the ECX are cash crops such as coffee and sesame.
Source: Addis Fortune