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SEC issues new rules for warehouse, collateral management

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SEC releases rules to permit crypto trading in Nigeria

SEC issues new rules for warehouse, collateral management


 

The Securities and Exchange Commission (SEC) has released new rules covering warehousing and collateral management among others.

A statement titled ‘SEC releases rules on Warehousing and Collateral Management’ said every warehouse that stores commodities to be traded on a registered exchange shall apply to be registered by the commission.

It added that the commission shall maintain a register of all registered warehouses which shall be published on its website.

The statement read, “A warehouse applying for registration, going by the rule, shall submit proof of ownership or registered-lease deed or rent agreement, along with disclaimer from the owner of the warehouse/property providing waiver of ownership regarding Commodities stored in such warehouse, in case of leased or rented warehouse.

“Present evidence of construction in compliance with the National Building Code, present evidence of compliance with relevant federal and state regulations relating to the operation of warehouses, and have facility(ies) appropriate for storage of commodities.

“Other requirements are that the warehouse should have appropriate security arrangements in place, have adequate trained staff with expertise and knowledge of scientific storage of commodities, have requisite equipment for weighing and quality measures of commodities, as well as have comprehensive insurance cover for the building, equipment, stock and other items as may be necessary.”

The rule also stated that the warehouse should be located in a place with access to infrastructure to support its operations and have sufficient space for parking and movement of large vehicles, have an efficient system for loading/unloading of commodity including a proper mechanism for segregation of different kinds/quality of commodity.

The statement directed the owners to submit a Standard Operating Procedure and undergo several procedures for acceptance of commodities to be deposited and delivery of commodities.

The rule said that for a Collateral Management Company to be registered by the commission, an application shall be filed to the SEC accompanied by the relevant documents.

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