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Retail Market – General Commodities Ring

In the General Commodities Ring, buying or selling auctions are conducted for any listed product whose trading frequency does not justify its inclusion in a specific trading ring, such as electricity, construction materials, cereals, or natural gas.

Among the currently traded underlying assets are:

Food products: Carbonated or still mineral water, bakery products, meat products, dairy products, canned foods, etc.

Solid fuels for heating: Firewood, briquettes, pellets, sawdust, etc.

Chemical products for various fields: technical urea, de-icing agents, calcium chloride, polymers for water treatment, chemical fertilizers for agriculture, etc.

Various products for vehicle fleet maintenance: tires, technical engine oils, antifreezes, etc.

Precious metals: gold, silver, platinum, palladium, etc.

The main advantages resulting from accessing the General Commodities Ring within the Retail Market (Spot) refer to:

  • Competitive price – obtained in an organized framework, as a result of the direct interaction between supply and demand. Using the price negotiation mechanism within the open-outcry auction or the electronic auction provides the possibility for bidders to further improve prices compared to their initial financial offers. If the prices obtained do not fall within the proposed cap, there is the possibility to negotiate their reduction with the bidder ranked first within the same session, without the need to restart the entire procedure;
  • Shorter timeframe for conducting procedures – the order is scheduled for trading within a maximum of 7 days from the date of issuance;
  • BRM quotations – provide the advantage of a reference system for benchmarking against market prices in transactions carried out through BRM;
  • Exchange Guarantee System – proper performance of the contract based on this system used, as well as as a result of the careful selection of bidders before they are admitted to trading;
  • Large number of bidders, due to the significant quantities traded at the overall market level;
  • Time and additional effort savings related to the sale or purchase of products;
  • Elimination of bureaucracy related to traditional public procurement procedures by standardizing commodities and reducing the number of required and submitted documents.

Access and Trading Methods on the Retail Market (Spot) – General Fungible Products Ring

1. Complete the Initiating Order, according to your situation and specifications.

ATTENTION!

In the General Commodities Ring, the product’s own price is auctioned, including transport but excluding VAT! In procurement/sale procedures for multiple products for which a single auction is organized, the total contract price will be auctioned, also including transport but excluding VAT!

2. Establish the procedure schedule with the General Commodities Ring Manager or the BRM Terminal Director you belong to

Your trading session (auction) will take place either on the BRM electronic trading platform or in a physical meeting at the organizing Terminal’s headquarters. It will be scheduled within a maximum of 7 calendar days from the date of publication of your Initiator Order. To postpone this deadline for a period between a minimum of 4 and a maximum of 15 working days, please submit a written request to the ring manager.

3. Submit the Initiator Order along with the Award Documentation to BRM (Headquarters or organizing Terminal).

It is recommended that the Award Documentation include:

  • Terms of Reference – your technical conditions and specifications for the supply of products in the future supply contract.
    • Appendices with delivery locations
  • Supply Contract (draft) – your conditions and specifications from a legal and economic perspective.
  • Participation Forms – to be completed by any potential bidder

4. BRM publishes your Initiating Order and sends the Invitations to Participate.

If you submit the Initiating Order and the Award Documentation by 16:00, the procedure will be published the same day.

If you submit the documents after 16:00, the procedure will be published the next day. For this reason, the procedure schedule may be subject to changes. Full responsibility for any changes to the procedure schedule lies exclusively with the ordering customer.

5. Publicity period

Between the publication date of the procedure and the Deadline for Submission of Offers, any potential bidder may submit requests for clarification and/or amendments to the Award Documentation, to the addresses and within the deadlines specified in the Initiating Order. Full responsibility for drafting and sending responses to clarification requests regarding the Award Documentation lies exclusively with the ordering customer.

6. Registration of bidders for the procedure and submission of offers

Any potential bidder must submit the requested documents by the deadline specified as the Deadline for Submission of Offers, as follows:

  • Opposite-Side Order – to the ring manager and to the address of the organizing Terminal
  • Proof of posting the Exchange Guarantee – to the ring manager and to the address of the organizing Terminal
  • Offer Documentation (documents requested by the initiating customer) – to the addresses of the initiating customer or to the address of the organizing Terminal

7. Evaluation and qualification/rejection of offers

The evaluation of the documents requested through the Award Documentation (pursuant to Law 98 or 99/2016) within the submitted offers, as well as their qualification or, as applicable, rejection from the price trading stage, is carried out by the evaluation committee of the customer initiating the procedure. Full responsibility for qualifying or rejecting the received offers lies exclusively with the ordering customer.

8. Electronic Trading Session

It is divided into 3 stages, as follows:

  • Stage I: Opening of the Session – Bidders enter starting prices – Approximate duration: 15 minutes
  • Stage II: Free Trades – Bidders improve the prices entered in Stage I – Approximate duration: 15 minutes
    • The prices of the bidders and of the initiating customer are visible to all participants throughout the session
    • The initiating customer’s price may be challenged by any bidder, thereby launching the trade. Execution time: 2 minutes
    • The price of the bidder who launched a trade may be counter-challenged by any other bidder. Counter-challenge time: max. 2 minutes
    • If the order that launched a trade is not counter-challenged within 2 minutes of launch, the trade is executed and can no longer be challenged.
  • Stage III: Closing of the Session – Bidders can no longer modify prices. The Initiating Customer accepts/rejects the best price.

Attention! If operational malfunctions occur during Phases 1 and 2, immediately take a screenshot (not a phone photo) of the error message from the application menu and send it immediately to the ring manager you are working with. Then contact your point of contact, either at BRM or at your assigned terminal. Complaints not accompanied by the supporting screenshot will not be considered!

9. Completion of the procedure. Documents issued following the trading session

  • Trading session report – signed by all participants in the respective procedure:
    • The Initiating Customer
    • Bidding Customers
    • Session coordinator
  • Exchange Contract (for sessions concluded with award) – signed by:
    • The Initiating Customer
    • The Customer Winning the Auction
    • Session coordinator

10. Completion of the procedure. Return of guarantees. Payment of the BRM commission

  • Complete a Guarantee Refund Request and submit it to the ring manager.
  • If the company you represent is a party to the executed transaction, pay the BRM commission into the account specified on the invoice you receive after signing the Exchange Contract.
  • If you posted the guarantee via Payment Order, you may also pay the amount on the commission invoice by offsetting it against the amount transferred to the guarantee account. In this case, request the Mutual Debt Settlement Agreement from the ring manager. The difference will be transferred back by BRM to the account specified by you.
  • If the company you represent is not a party to the recorded transaction and has no outstanding debts to BRM, BRM will transfer the amount back to the account specified by you, within the timeframe specified in the Guarantee Refund Request.