Membership Admission

To be member of exchange there should be some criteria that should meet. Criteria are based on financial soundness, compliance point of view and education background. For each type of membership criteria are as follows:

Exchange memberships are offered through its offices as well as on-line through the website of Mercantile Exchange of Madagascar. The intended applicant will register with the website and receive an application form which he can complete on line and submit for Exchange Approval.

The Membership Department of the Exchange will conduct a complete due diligence of the applicant as per the compliance formalities set forth in the Exchange Bye laws. The Department will also determine the sources of funds used by the applicant to purchase the membership, using Anti-Money Laundering (AML) guidelines accepted by the Madagascar. After complying with the due diligence procedure about the applicant’s bona fides and background, the applicant will be notified that he is either accepted or rejected for membership. If accepted, the applicant may sign a membership agreement and transfer the membership fee as per the procedure to one of MEXM bank accounts or can pay by cheque.

When the applicant’s funds have been received, the applicant will be assigned a member number and given access to the Clearing House whom he may then contact to set up a trading account.

Sales of Memberships

For the first three years of operation of the exchange, memberships may only be purchased from the exchange itself. A member wishing to sell his membership during this period may contact the exchange which could in turn sell it back to a new member or auction the membership. He will then receive the price, for his particular membership, which is prevailing at the time, After expiration of the first three years , the exchange will stop issuing membership by application and facilitate a secondary market in which the intended buyer or seller will have an option to buy or sell his/her membership at market rates.

Costs and Fees

Following is a table which lists the prices and ancillary fees associated with each membership.

SN	Membership Type	Membership fee (+VAT)	Application fee(part of membership fee)	Annual Subscription fee	Miscellaneous
1	Clearing Membership	MGA225.000.000,00	25% of Membership fee	15% of prevailing membership fee
2	Market maker membership	MGA180.000.000,00	25%of membership fee	15% of prevailing membership fee
3	Introductory Broker membership	MGA8.000.000,00	25% of membership fee	15% of prevailing membership fee
4	Institutional membership	MGA25.000.000,00	25% of membership fee	15% of prevailing membership fee
5	Individual membership	MGA 30.000.000,00	25% of membership fee	15% of prevailing membership fee

Application and admission procedure: