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USE Commodities Exchange was incorporated in October 2020, with the Uganda Securities Exchange having received an approval from CMA to operate a Commodities Exchange in December 2021. With the establishment of a commodity segment on its trading platform, the USE aimed to create a marketplace for high-quality commodities, particularly grains. To advance this agenda, USE incorporated a new subsidiary, USE Commodities Exchange Limited (USE COMMEX), in 2020, offering
neutral third-party services to ensure delivery and payment with key value propositions:
Quality Assurance
Provide assurance of quality of what is being sold and holding it in storage on behalf of the seller, thereby guaranteeing quantity and delivery of the product to the buyer—this was a significant contributory factor that failed past attempts at setting up the exchange
Guarantee Payment
Operate a payment clearing and settlement system that enables correct amounts to be paid in FULL AND ON TIME
Agricultural Lending
Facilitate access to finance
through provision of credible
and de-risked collateral held
in form of a warehouse
receipt “commodity security”
Broader Market
Operate a trading system that
enables buyers and sellers
discover each other when they
need to trade – its features to
include a trading floor, brokers,
central depository/registry,
and electronic systems to
facilitate easy/remote access
by anyone.
Price Discovery and Market Information
Enable dissemination of timely
and credible market
information as soon as trades
are made so that it is possible
for anyone to make an
informed decision on how and
when to trade
Facilitate Trading:
Access real-time and historical market information for informed trading decisions market information for informed trading decisions..