AFEX Forward Contracts provide processors with a product that allows them to ensure the availability of raw materials for their activities as well as an ability to hedge price risk. It also gives the seller, typically a producer or trader, the opportunity to participate in the upward price movement of the commodity without undue exposure to market or price risks.
Commodity buyers/off-takers, especially processors and manufacturers require a reliable and sustainable source of funding to cover the purchase of commodities during the early stages of the harvest period to take advantage of the low prices and mitigate the expected upward trend in prices. ABCPs enable companies to raise short-term funds on a continuum through issuing of notes for subscription.
ETCs are investment vehicles (asset backed securities) that tracks and replicates the performance of an underlying commodity index including total return indices based on a single commodity. ETCs are similar to Exchange Traded Funds (ETFs) and are traded and settled like normal shares on their own dedicated sector. ETCs have dedicated market maker support enabling investors to gain exposure to commodities on Exchanges during trading hours.
AFEX's ComX is the electronic platform where securitized agricultural assets are traded. ComX is designed to provide the market with a user friendly and efficient shared-infrastructure, allowing clients of the exchange to put up trades themselves as well as allowing brokers to do so on their behalf.