AHCX IN BRIEF

AHCX is a marketplace where buyers and sellers can transact trade of commodities with an assurance on quality, delivery and payment. The Exchange is committed to ensure that the market is assisted with a modern market institution that brings in much needed integrity, by providing a guaranteed mechanism, for the quality, quantity and payments. Further it makes the market efficient, by introducing standardized contracts and trading systems. AHCX is a fully electronic market, bringing in transparency and empowering the farmers by disseminating market information in real time to all market players; and at a later stage, the Exchange will provide the market with options for risk management by offering futures trading.

AHCX has five key operations:

• Quality Grading and Certification
• Electronic Warehouse Receipting (Collateral management)
• Trading floor operations
• Clearing and settlement ( Clearing House operations)
• Market Information Dissemination (Real time and discrete)

  In addition, the Exchange has several major support functions:

• Market Research & Development
• Member Client Management
• Compliance & Arbitration
• Market Surveillance and intelligence
• Risk Management, including a Settlement Guarantee Fund

The AHCX model is based on a holistic and integrated approach in linking all of its business and support operations into a single technology platform. The integrated AHCX system is a cohesive approach powering the end-to-end operations from membership to quality certification in laboratories to collateral management to trading to clearing and settlement to market information dissemination.

AHCX Vision

Transforming agricultural marketing and empowering Malawi by providing a state of art, efficient, fair and transparent platform for trading in commodities and other assets in competitive and Innovative manner, whilst upholding global standards.

AHCX Business Process

1. Deposit and Issuance of Electronic Warehouse Receipt

• The seller bringing the deposit to the warehouse.
• samples and grading
• The Goods are weighed and the Deposit Acknowledge slip is generated.
• This detail is then exported to the exchange Warehouse depository for issuance of Electronic Warehouse receipt.

2. Trading

• The traders access the trading floor for the trade.
• Order matching based on the open outcry system.
• Filling an order ticket and submitting it to the exchange back office.

3. Clearing & Settlement

• After all the trading session, clearing House finalizes the amount payable by the buyer and receivable by the seller.
• Exchange will generate an automated statement for debit and credit of settlement accounts of the respective members.
• This file will be sent electronically to the bank the next day
• The settlement system will also inform the Warehouse Depository to make the title transfers.

4. Delivery

• The buyer to inform the exchange about his intention of picking up the delivery.
• Warehouse supervisor prepares the delivery
• Loading of commodity finishes the process.

Trading Commodities

1. Non GMO Maize (grades 1 to 3). All varieties
2. Soya Beans (grades 1 to 3). All varieties
3. Ground Nuts ( High protein or High oil Variety) Grades 1 & 2
4. Rice ( grades 1 and 2) all varieties
5. Sugar Beans (Red Speckled beans grades 1 and 2)
6. Red Kidney Beans (Grades 1 and 2)
7. White Haricot beans (Grades 1 and 2)
8. Pigeon peas (grades 1 ,2, and 3)
9. Cow peas (grades 1 and 2)
10. Sunflower (grades 1 and 2)