Information for fruit and vegetables business in CIS
Meeting of the Board of Directors of Exchanges - Members of the Pilot Project at Prydniprovska Commodity Exchange
On May 27, 2003 a meeting of the Board of Directors of Exchanges - Members of the Pilot Project was held in Dnipropetrovsk.
The following reports were heard at the meeting:
"State of development of Pilot Project for introduction of commodity derivatives screen trade";
"List of the documents to be discussed and approved";
"The opportunities of integration of the developed system of exchange trades into the world system of trading agricultural commodities";
"Prospects of integration of the Pilot Project members with information agency APK-Inform";
"Guarantees, provided by an insurance company, in execution of forward exchange contracts";
"Technical state of preparedness of the screen trading system in the process of test operations".
The meeting participants discussed and, taking into account the notes and proposals of the discussion, approved the following:
the formats of forward, pre-paid forward and sales/purchase option exchange contracts;
responsibility insurance contracts for execution of forward contracts, agricultural commodities (of the following crop), transportation of loads and sales/purchase of mortgaged property;
formal contract of the exchange with authorised elevator/storehouse;
the rules of interaction of the screen trades participants;
the schedule of work with commodity derivatives exchange trade members in regions.
Interaction of the system participants (Dnipropetrovsk, Zaporizhzhya, Kherson, AR of Crimea) was demonstrated during preparation of the screen exchange trades and at the actual trades.
The meeting has issued the following orders:
to consider draft documents, providing interaction of the trades participants with Clearinghouse and the Authorised Bank;
to develop cost estimate at the stage of test an commercial operations of the screen trade system;
to study possibilities of placing financial reserves of the Insurance company in the Guaranty Fund of Clearinghouse.
Proposals have been accepted concerning the schedule of work with commodity derivatives exchange trade members in regions.
Head of the Board of Directors of Exchanges - Members of the Pilot Project V. F. Kameko