Management of the Exchange has set a strong chain in place to regulate its affiliates whether members or clients, while it safeguards the interest of all market participants at trading management, membership management, formation of market safeguards.

i) Clearing and Settlement Dept.( CSD)

In protecting the financial integrity of the marketplace, MEXM together with its own Clearing and Settlement department, adopts a financial and operational safeguard system that is comparable to the best international standards. This system is designed to provide the highest level of safety with very early detection of unsound practices on the part of any Member or Clients. Protection against market defaults are imperative and remain the ultimate goal of the clearing system.

ii) Audit, Compliance & Surveillance (ACS)

The ACS has the overall responsibility of upholding the integrity of MEXM futures markets. The division carries out a wide range of duties through its carefully selected and competent audit division which include daily and regular monitoring of the market and Members, regular visits to Members' offices for field inspection, audits and monitoring of the activities on the trading.

The duties of the ACS can be classified into the following major areas:

- Audit and Compliance

Responsible for detecting violations of the Rules and the Bye-Laws, Conducts routine and surprise inspections and audits on Members, as well as reviewing the adequacy of their internal controls.

- Financial Surveillance

It’s responsible for detection of failure on the part of by Members in meeting the minimum financial requirements. It conducts regular monitoring of members' financial positions and clients' funds in segregation. Submission of Periodic net-worth certificates to MEXM, maintenance of minimum capital level in member deposit accounts, regular inspection of member's office and their documentation, periodic compliance report submission by members are the necessarily followed by exchange to ensure financial capabilities of the members. Early warning levels are established to facilitate more intensive monitoring where necessary, on the Members' financial positions.

- Market Surveillance

Responsible for detection of any adverse situation that may threaten the orderly trading or liquidation of contracts on any MEXM futures markets to avoid possible market disruptions. It also conducts uninterrupted monitoring of spot prices of commodities in various markets and prices of substitutes of the underlying commodity of the futures contracts, as well as the open positions of traders.

iii) Segregation of Clients' Funds

Exchange is managing a segregated account with its bankers. All client margins coming to the members shall be deposited in this account. Members are required to maintain a specific bank account for dealing with the exchange. This account will be used transfer of clients margin funds intended for trading. As a part of managing highest compliance levels, clients fund withdrawals shall be paid preferably to the bank account of the client.

vi) Management of Exchange:

Mercantile Exchange of Madagascar SA (MEXM) incorporated as a Public Limited Company organized under Laws of Madagascar in ……………………………………….MEXM is governed by best corporate governance practices adopted by global corporate sectors. Audit and financial administration system ensures globally accepted best audit practice in industry. Head of the institution has successful professional track record of managing commodity exchange in other part of globe too. Professionals are our backbone, Transparency is our day-to-day practice. Technology is our stem. Commercialization of market to benefit the farmers’ is our goal. Management of risk is our motto.

Shareholders of MEXM:

Committee based management system:

Various functions of the exchange are governed by specialized committees working within the exchange. These committees are comprised with senior staff members of the exchange and they manages various day to day functions of exchange, in tandem with concerned with departments as their name indicates.

Committees:

• Member Services Committee.
• Surveillance Committee.
• Trading, Clearing and settlement committee.
• Disciplinary committee.