CWT gets go-ahead to operate physical commodity exchange in Indonesia

It will be branded as Asia Commodity Marketplace.

With the intention to offer an organised market place for local producers and international market participants, Singapore mainboard-listed CWT Limited's financial arm revealed its receipt of regulatory license from the Indonesian Regulators to operate a Physical Commodity Exchange and a dedicated Clearing House in the foreign land.

The exchange, which will be branded separately as Asia Commodity Marketplace (ACM), envisions an organised market where participants can transact directly and negotiate anonymously over an electronic platform.

The license was issued to CWT's financial services arm Straits Financial Group.

"This allows market participants to access a larger pool of counterparties to trade physical commodities and settle the transaction through the Clearing House," the group said in their announcement.

More so, CWT claimed that market participants can expect cargoes to be delivered through secured bonded warehousing facilities, both inland and along major seaports in Indonesia.

According to the ACM CEO, Arwadi Setiabudi, the license would give the group a chance to revolutionise practices of physical trading in Indonesia.

This would be "by connecting buyers directly to the production source; and more importantly, for the transaction to be backed by a central clearing counterparty for risk mitigation,” he said.