Tanzania Mercantile Exchange (TMX)

WELCOME! TMX is the first commodity exchange in Tanzania established and committed to provide a world-class commodity exchange platform for market participants to trade in a wide spectrum of spot and future commodity contracts driven by best global practices, technology, professionalism and transparency. Tanzania Mercantile Exchange (TMX) is the first commodity exchange in Tanzania. The exchange is established to help farmers, traders, exporters and other various market actors access domestic and global market and obtain a fair price in selling or buying of commodities. .

Exchange Overview

TMX was incorporated on 25th August 2014 to perform the business of a commodity exchange in Tanzania. The Exchange has been established as a public private partnership company. The first four shareholders of the company are the Treasury Registrar, TIB Development Bank, Public Service Pension Fund (PSPF) and the Tanzania Federation of Cooperatives (TFC). The Exchange is regulated by the Capital Markets and Securities Authority (CMSA) under the Commodity Exchanges Act, 2015.

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Vision and Mission

VISION:
To become the leading and most diverse and dynamic commodity market place in East, Central and Southern Africa.
MISSION:
To provide a modern, efficient, transparent and reliable market platform for commodities to serve the national development goals through state of the art technology and integrity.

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About Us

Tanzania Mercantile Exchange (TMX) is an organized marketplace, providing a platform where buyers and sellers come together to trade, assured of quality, quantity, payment, and delivery. TMX firmly believes that it would achieve its main objective when a Tanzanian farmer would be able to choose his cropping pattern based on spot and futures prices disseminated by the Exchange, rather than the practice of sowing a crop based on current prices.

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Tanzania Mercantile Exchange (TMX) maintains a Central Depository or Registry of warehouse receipts which guarantee product integrity. Manual Receipt issued under the Warehouse Receipts Act, 2010 will be immobilized into Depository Receipt. The Tanzania Mercantile Exchange (TMX) Central Depository is the sole entity authorized to and responsible for issuing Depository Receipt, printing copies of receipts, transferring legal title, and canceling receipts. The Depository Receipt issued by the TMX Central Depository represents legal title to the deposited commodity. The Depository Receipt is transferable and negotiable on the TMX through the function of the TMX Central Depository.

The Central Depository will maintain separate accounts for every depositor. The Exchange Central Depository will provide the following services: Create Depository Receipts;

  • Maintain and edit required depository receipt data;
  • Maintain a register of Depositors
  • Effect settlement of contracts traded on the Exchange by transferring Depository Receipts between holders;
  • Issue Delivery Note after transfer of Depository Receipt;
  • Void or cancel Depository Receipts;
  • Reconcile records daily
  • Tanzania Mercantile Exchange (TMX) believes that fairness of commodity trading and adequate protection for its participants (buyers and sellers) members is essential for a quality market and prerequisite for price discovery. The main activities of Tanzania Mercantile Exchange (TMX) market surveillance operations are to preserve the integrity of price discovery process by monitoring the market to detect and deter the following:

  • Market manipulation practices- an act by a market participant or a group to deceive in prices or volume of a commodity.
  • Insider trading – commodity trading made by TMX employee, Board member or affliate based on insider information.
  • Misstatement – Rumors or false information to mislead the public in making a commodity trading decision.
  • Tanzania Mercantile Exchange (TMX) shall employ the use of software models for generating real time price, volume, alerts for each trading member’s unusual trade activities. The software will have a capability to link transaction prices and trades volumes in each commodity traded in real time, and in the past and if there is unusual changes in trading pattern will alert the market surveillance team.
  • Market surveillance team will investigate all unusual trading pattern and pass on evidence in a report to the Tanzania Mercantile Exchange (TMX) Compliance team for further action if there was suffcient evidence that the exchange’s rules have been breached.
  • For efficient clearing & settlement of trades, Tanzania Mercantile Exchange (TMX) employs an automated clearing and settlement system with the Exchange’s Clearing Banks. TMX’s clearing and Settlement assumes a Central Counter Party (CCP) risk for all members’ trades. It establishes the net obligations of each member, informs the members of their daily net obligations and transfers cash funds and commodity ownership among members. TMX identified settlement banks includes:
    1. NMB Bank
    2. CRDB Bank

    More banks will be added

    Settlement Guarantee Fund will be made up by deposit or contribution by broker / dealer to the SGF. Tanzania Mercantile Exchange (TMX) will prescribe the norms from time to time, the procedures, the terms and conditions governing SGF, which may, inter-alia, specify the amount of contribution. SGF is a pool of assets used as a guarantee to the successful settlement of all trades executed on the exchange. In the event of a Broker / Dealer being unable to pay for his commitments, the SGF shall be used to meet the payment obligation of such intermediary. The SGF is intended to avoid the default of one Broker / Dealer producing a “snowballing” effect of defaults among other Broker / Dealer and their customers. In the unlikely event of a default, the SGF will act as an essential element of a comprehensive settlement-risk-containment system. Creation of an SGF provides the Exchange Clearing, Settlement and Depository framework with the resources to meet its obligations, even when a participant fails to make good on a payment obligation.

    Tanzania Mercantile Exchange (TMX) is an organized marketplace, providing a platform where buyers and sellers come together to trade, assured of quality, quantity, payment, and delivery. TMX began operations in 2018, with a goal to increase access to markets for buyers and sellers of commodities in Tanzania. TMX firmly believes that it would achieve its main objective when a Tanzanian farmer would be able to choose his cropping pattern based on spot and futures prices disseminated by the Exchange, rather than the practice of sowing a crop based on current prices.
    It is envisioned that Tanzanians will have graduated from a least developed country to a middle income country by the year 2025 with a high level of human development. The economy will have been transformed from a low productivity agricultural economy to a semi-industrialized one led by modernized and highly productive agricultural activities which are effectively integrated and buttressed by supportive industrial and service activities in the rural and urban areas.
    TMX was incorporated on 25th August 2014 to perform the business of a commodity exchange in Tanzania. The Exchange has been established as a public private partnership company. The first four shareholders of the company are the Treasury Registrar, TIB Development Bank, Public Service Pension Fund (PSPF) and the Tanzania Federation of Cooperatives (TFC). The Memorandum and Articles of Association (MEMARTs) of TMX among others, make provision for the TMX company to have an authorized share capital of Tanzania Shillings fifty billion (TZS 50 billion) to be subscribed for by investors from the public and the private sector at 49% and 51% respectively. The Exchange is regulated by the Capital Markets and Securities Authority (CMSA) under the Commodity Exchanges Act, 2015.