User:Spimex/Spimex

Saint-Petersburg International Mercantile exchange (SPIMEX) – is a legal entity aimed at forming the wholesale market by establishing and regulating the exchange trade carried out in a form of electronic auctions hold at the pre-agreed premises and in time subject to SPIMEX regulations.

Exchange trade is mainly targeted onto the development of price-forming mechanisms applied to a variety of goods denoted for the exchange auctions on the market. The traditional price-forming mechanism pursues the following scheme: sellers and buyers cooperate on anonymous basis, i.e. not seeing one another. Some declare their goods for sale, pricing the offer; others announce their intention to buy, forming the price of demand. The Seller wants to sell the goods at the ceiling charge, and the Buyer aspires to mark the price down. Nevertheless the Seller’s intention to encash the goods forces to reduce the offered price, and the Buyer’s desire to buy forces to increase the price demanded. At a certain time the proposed prices intersect and close a transaction, reflecting feasible market conditions on the given goods. It is the most translucent and true mechanism to sell the goods at a fair price.

In order to meet the demand of the major dealers on the Russian market of oil products and provide a fair price-forming mechanism through a planned trade system and a complex of information services, SPIMEX has formed a sector of Oil Products based on an integrated technological platform.

Clearing services at SPIMEX are implemented through a designated organization. In fact it’s an acknowledged world-wide practice for the scheme of technological and operational infrastructure building. Formed by the specialized project offices of Gazprombank and RDK (JSC) the working group diligently and proactively developed a process flow scheme establishing a clearing company with a modern clearing and payment system for the organized market of goods and derivative products highly competitive with the existing international clearing houses. Applying these process flow schemes RDK (JSC) fulfills a clearing function, handles the principle of “delivery versus payment”, operates as a depositary for the warehouse certificates for different types of goods, guarantees transactions with securities and in whole provides the basis for the system of modern risk management and transactionsforumspb guaranteeing.

The process flow scheme has at least two essential differences from those applied at the present moment.

First of all, the settlement of payments within the clearing procedures is planned through the interaction with the major Russian banks which guarantee high quality and constant servicing for SPIMEX trade participants.

Secondly, the scheme is very flexible and it allows developing effective interaction with SPIMEX and other trading venues as well as with various supervisors of deliveries of a wide range of goods. In addition to oil products SIMEX intends to establish the trading floor for metals, grain and construction materials The Company founders are: “Transnefteproduct”, “Gazpromneft”, “Rosneft”, “Transneft”, “Zarubezhneft”, “Surgutneftegaz”, “Agency of strategical investments”, “Tatneft”, “NOVATEK”, “Transoil”, “RM Processing”, “Surguteks”, “VTB-Invest”, “Jester”, “Russian Railways”, “Modern commercial fleet”, “Russian-German leasing company”.

One of the first-priority directions of the company activities is to organize the Futures Contract trade on commercial assets, and form, on its base representative market prices for the Russian goods. July 5th, 2010 is the date when the Section of Derivatives Market began to work.

December 17th, 2010 first delivery futures contracts bidding took place in this section on summer diesel oil for three and six months. Contract size – one tone, minimal delivery consignment made up sixty tone. Shipping is carried out by rail transport, from oil-refining plants, situated in Moscow, Nizhny Novgorod, Ryazan, Yaroslavl and Samara. Contract price tied up to the railway station, that is situated in Vladimir, goods delivery, in it’s turn, is carried out by recalculation of the price to the basis of real shipping, taking into account the transportation expenses. According to the results of pre-delivery trading session, contracting parties pairs for oil-products delivery were formed, such companies as: “Management company ”Trans-oil”, “Alor Invest”, “Novotek-Trading”, “G D Commodities”, and the clients of “BD “Otkritie” – “Investpro” took part in the session.

The total volume of positions opened by trading participants amounted to 300 tone of summer diesel oil. In addition to 240 contracts, supply contracts have been executed for delivery of basic asset from refineries, that are situated in Nizhny Novgorod and Ryazan until April 16, 2011; the other contracts were executed on calculating basis, in accordance with the accounting price of the futures contract registered in the last trading day-22.830 rubles per ton.

For the first calendar month in Section of Derivatives Market, around 733 transactions were made, with a total volume of 37,8 thousand contracts or 832,5 million rubles. The right for participation acquired twenty four companies, from among the most active representatives of Russian trade market, the largest financial brokers and investment companies.

Commodities traded

 * Gasoline
 * Coal
 * Crude oil
 * Heating oil