Question

critically analyse the following exchanges ( south africa futures exchange, zimbabwe agricultural commodity exchange, zambian commodity exchange, ethopian commodity exchange,agricultural commodity exchange for africa,dubai gold and commodities exchange, chicago mercantile exchange, commodity exchange bratislava,chicago board option exchange, zhengzhou commodity exchange and the ice futures) and provide investment advice toan index derivatives investor based on your findings?

Answer 1

1. South Africa Futures Exchange (Safex)

It is the futures exchange subsidiary of JSE Limited, the Johannesburg-based exchange. It consists of two divisions a financial market division for trading of equity derivatives and an agricultural market divisions (AMD) for trading of agricultural derivatives.

The Exchange is a Self Regulatory Authority and excercises its regulatory functions in terms of the Financial Markets Control Act, 1989 and its rules. The exchange in turn is supervised by FSB.

2. Zimbabwe Agricultural Commodity Exchange

  Smallholder farmers are capable of trading on the exchange and therefore realise higher prices. The exchange facilitates the trade of any agricultural commodity produced in the country.Benefit of trading on this exchange is prices are market based, that is supply and demand determines prices.

3. Zambian Commodity Exchange ( ZAMACE LIMITED)

ZAMACE is a private run company that operates Zambia's sole commodity exchange. Listing vitamin A maize on the ZAMACE platform means that buyers can readily seek through a bidding process, this special commodity and that vitamin A maize farmers have a ready market.

4. Ethiopian Commodity Exchange (ECX)

  It is a commodity Exchange established April 2008 in Ethiopia. In proclamation 2007-550, which created the ECX, its stated objective was "to ensure the development of an efficient modern trading system" that would "protect the rights and benefits of sellers, buyers, intermediaries, and the general public.

5. Agricultural commodity Exchange for Africa

  It is a commodity exchange and warehouse receipt system operating in Malawi. The Exchange has facilitated finance of over $22M to SMEs for agricultural produce and traded over 200,000 MT of commodities.

6. Dubai Gold and Commodities Exchange (DGCX)

  It is a financial and commodity derivatives exchange located in Dubai, the United Arab Emirates. DGCX commenced trading in November 2005 as the first derivatives exchange in the Middle east and North Africa (MENA) region. The exchange is owned by the Dubai Multi Commodities Centre.

7. Chicago Mercantile Exchange(CME)

  It is a global derivatives market place based in chicago and located at 20 S.Wacker Drive. The CME was founded in 1989 as the Chicago Butter and Egg Board, an agricultural commodities exchange. Originally this exchange was a non-profit organistion.

8. Commodity Exchange Bratislava

It is formerly BMKB, then BCE and now CEB is a European Commodity Exchange made for organising market with commodities according to adjudication of Ministry of Economy of the Slovak Republic.

9. Chicago Board Options Exchange (CBOE)

The CBOE located at 400 south Lasalle Street in Chicago, is the largest U.S. options exchange with annual trading volume that hovered around 1.27 Billion contracts at the end of 2014. CBOE offers options on over 2200 companies, 22 stock indices, and 140 exchange traded funds.

10. Zhengzhou Commodity Exchange (ZCE)

  It established in 1990, is a future exchange in Zhengzhou, one of the four futures exchanges in China. The ZCE is under the vertical management of China Securities Regulatory Commision.

11. Ice Futures Exchange

  Intercontinental Exchange is an American company that owns exchanges for financial and commodity marketplaces. This includes ICE futures exchanges in the United States, Canada, and Europe, the NYSE, equity options exchange and OTC energy, credit and equity markets.

Among all these exchanges its better to do investment in DGCX, CBOE, ZCE.