The Capital Markets Authority has launched a public consultation on its draft Commodity Markets Regulation, which aims to promote a competitive market for agricultural and non-agricultural commodities.
Published on 12 August 2019, the draft regulation is part of the 10-year Capital Market Master Plan 2014-2023, focused on the Food Security aspect of the Big Four Agenda and the Northern Corridor Integration Projects.
The regulation provides for the licensing of commodity exchanges, brokers, and the approval of clearing houses, while also stipulating trading and conduct of business in the exchange.
Key provisions include limits on excessive speculation of commodities, a commodity settlement guarantee fund, and measures to improve efficiencies on the value chain.
The Authority welcomes public commentary to promote an inclusive and appropriate regulation for all commodities, affecting multiple stakeholders.
Read the full Commodity Market draft here.
