The AfMX® (in full, Africa Mercantile Exchange Limited) is a Nairobi based Commodity Exchange. It is the first fully diversified commodities exchange in Africa in terms of Product portfolio.
It is also the first mercantile exchange to be created in Africa. The Africa Mercantile Exchange was incorporated June, 2005, creating the Africa Mercantile Exchange Limited (AfMX®).
The “AfMX” was founded by Thungu Thuku with the mission to help Africa’s commodity market; manage the layers of risk associated with the production, processing, route to market, delivery and the subsequent payment for the commodities.
Over the years, the exchange’s growth has been marked by a consistent upward trajectory characterized with the offering of diverse financial instruments all practically designed to ameliorate the continent’s trade processes.
Since 2005, the exchange has constantly evolved with the adoption of innovative technology; such as the introduction of a host of cutting-edge computing systems and interfaces that enhance access to the market on hand held devices through the extranet.
In 2005, AfMX® became the first African commodities market to implement an automated system for the dissemination of market data and information online in real-time through a wide network of computer terminals. As at the end of 2007, AfMX® had developed a system of secure data storage providing online services for brokerage firms. The year 2010, saw the exchange unveil a novel system of electronic trading, known as After®. After® extends the potential volume of processing of information and allows the Exchange to increase its overall volume of trading activities.
Consequently; with the aim to deepen mass access of Africa’s traders to the futures markets, AfMX® introduced the “core trader”, an internet-based trading system that allows individual investors and proprietary traders to trade futures and options. The system enables users to execute buy and sell orders online. Currently, the AfMX® is a fully integrated electronic exchange.
Importantly, the exchange is proactively involved in the ongoing reforms of the continental financial system aimed at instituting standardized and transparent commodity futures, options and derivatives trading legislation. It is envisaged that the common law will promote the sound management of commerce in commodities; an important element of the continent’s valuable resources. The exchange also recognizes that a proper, modern and relevant regulatory regime consistent across the continent that is swiftly moving towards integration will enhance the integrity, efficiency, robustness and stability of continental trade.
Through self-regulation, the Africa Mercantile Exchange continues to play an institutional role. The exchange operates as a for profit company. Moreover; the exchange, in concert with the Government of Kenya is spearheading the intricate process to enact the laws that will institute and promulgate The Commodity Futures & Trading Authority(CFTA). This body will be charged with the regulation and oversight of the strategically important sector within commodity trade.
The Africa Mercantile Exchange is steadfastly involved in the development of strategic alliances with existing commodity futures and options exchanges globally in order to consistently avail to Africa’s producers, intermediaries and consumers the most useful, responsive and cost-effective solutions in risk management.
The exchange continues to demonstrate a home-grown edge in the design and provision of responsive products and services provided to the wider continental financial market and the general Kenyan economy.
The exchange has a pre-market session from 09:45am to 10:00am, a normal trading session from 10:00am to 5:00pm and a post-market session from 5:30pm to 7:00pm weekdays and holidays declared by the Exchange in advance.