A Client can be represented through an Intermediary Member (IM) or Limited Intermediary Member. A client of an IM has the opportunity to buy and sell all commodities offered by the exchange.Clients have the right to submit to the Exchange Arbitration Tribunal any claims, controversies or disputes initiated by the intermediary member on the invalidation, performance termination, or cancellation of the trade contract.
Know Your Client Procedures
Although the relationship between a Member and Client is strictly private, the Exchange operates under certain Know Your Client (KYC) procedures which protect the client and enable a smoothly functioning system for all. When a Client signs up to trade through a Member, the client is expected to sign Member –Client Agreement (MCA) by presenting themselves at branches or main office of the exchange . the Member must submit the MCA to the Exchange. In addition, the Client must furnish the following information to the Exchange:
- save for Cooperatives clients and small scale farmer, Valid Business License,
- Tax Identification Number
- VAT Registration(if any)
- The general managers identification card or if the MCA is to be signed by representative , the delegation letter
- In addition to the aforementioned requirements ,
For PLC or share company clients, the memorandum of association and article of association
For cooperative clients, the registration certificate.
For small scale farmers, a Letter written by relevant authorities indicating the consignment at issue is produced in the specified farmer’s own farm.
As a client working through a member, the member’s brokerage fee is negotiated between both parties but cannot exceed 2% of the value of the trade.
How to apply
The Member Management Desk handles all queries regarding membership. Applications may be obtained online or in person from the Desk. Once completed, forms should be submitted to the Membership division
For further information or guidance, please contact:
ECX Membership division
Al-Sam Tower 2, 7th floor
Tel: +251 11 5183324/ 0115183327
Fax: +251 11 554 7010
All prospective Members/NMDTs and their Authorized Representatives are required to take training on the ECX system and to pass the Certification Examination with a minimum score of 70/100.
Training materials are provided in the form of an information booklet prior to the examination. The booklet is published in Amharic and English. The examination can be taken in English or Amharic in written form, as well as orally, upon request.
In keeping with global best practices, the Ethiopian Commodity Exchange Authority (ECEA) is the regulatory body established with the purpose of ensuring the development of an efficient modern trading system and to regulate and control the secure, transparent and stable functioning of the Exchange and to protect the rights and benefits of sellers, buyers, intermediaries and the general public.
Its specific objectives are to:
- promote responsible innovation, access to market information by all market participants and fair competition among markets and market participants;
- deter and prevent price manipulation or any other disruption of market integrity;
- ensure the financial integrity of all transactions subject to this Proclamation and the avoidance of systemic risk; and
- Protect all market participants from fraudulent or other abusive trading practices and misuses of customer assets.
The powers and duties of the ECEA extend to recognition and oversight of Exchange Actors (Members/NMDTs and their representatives) recognition and oversight of Clearing Institutions (domestic banks or other financial institutions engaged in clearing and settlement of payments), oversight of the Rules of the Exchange and regulation of Exchange-traded contracts, as well as regulation of the conduct of investment advisors, consulting companies, law practices, accounting and audit professionals, as this conduct relates to ECX business. In addition, the ECEA has the power to investigate wrongdoing and adjudicate cases falling under its jurisdiction or to refer criminal cases to the appropriate court.
Given the multi-sectoral nature and its broad scope of powers and duties, the ECEA is accountable to the Prime Minister. Moreover, in a unique and appropriate governance structure, ECEA is governed by a Board comprised of a Chairman, and a member from each of the following relevant government bodies: Ministry of Finance and Economic Development, Ministry of Trade and Industry, Ministry of Agriculture and Rural Development, and the National Bank of Ethiopia. Thus, by law, the ECEA Board shall exercise the full powers and duties of the ECEA. The operations of the ECEA are executed by a Director General, who is also an ex-officio member of the Board.
For further information or guidance, please contact:
Alongside the development of the ECX corporate entity and the regulatory body, the National Exchange Actors Association (NEAA) plays a vital role in the ECX Ecosystem. Following global best practices, Members and their Authorized Representatives are required to participate in the NEAA, which is an institution recognized by the Authority for the purpose of upholding and maintaining the standards of integrity, professionalism, and skills of all Exchange Actors.
The NEAA will maintain a database of Exchange Actors and be responsible for developing
1. Commodity Marketing and ECX Rules training standards and proficiency testing;
2. Self-audit programs for Members to enforce compliance with relevant ECX Rules and Authority directives governing accounting, financial standards, and trading practices;
3. Public database on grievances filed against exchange actors or the Exchange by Clients or others;
4. Public education and sensitization on the Commodity Exchange for media, policymakers, stakeholder groups, students, and others; and
5. Advocacy on behalf of Exchange Actors