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Organizing trading for Government Procurement Interventions on Grain Market in 2002-2003
Organizing trading for Government Procurement Interventions on Grain Market in 2002-2003
Taking part in government procurement intervention for regulating the grain market in 2002-2003, National Mercantile Exchange (NAMEX) provided organizational and consulting support for Central Russian Universal Exchange (CRUE) in preparing and conducting exchange trading during the period of government interventions.
NAMEX provided:
- Development of rules and regulations, governing relations between Trading Participants (hereinafter referred to as Traders) and Trading Places;
- Consulting of Trading Places concerning documents, submitted by Traders, and reporting/formalization of trading results;
- Consulting for Traders concerning trading procedure;
- Highly qualified broker for conducting trading sessions together with CRUE.
Key indicators of government procurement intervention on grain market in 2002-2003 were the following:
- Trading Period — from November 13, 2002 till January 22, 2003.
- Total quantity of sold grain was 2,834,100 tons for the sum of 4,941,803,600 RUR.
- Number of Repositories (authorized enterprises, selected for storing the grain of Governmental Intervention Fund) — 140.
- Total number of accredited participants — 343.
Organizing trading for Government Procurement Interventions on Grain Market in 2004
In 2004 National Mercantile Exchange (NAMEX) has won the tender (together with Central Russian Universal Exchange (CRUE)) for conducting governmental interventions on grain market in 2004.
National Mercantile Exchange has been acting as an Administrator of Exchange Trading, as well as provided:
- Availability of software, required for conducting trading sessions;
- Installation of required hardware for Workstations, their connection to a digital trading system (Grain Trading System — GTS) and uninterrupted functioning of Trading Place in Moscow (at CRUE location);
- Technical connection of remote Trading Places at other Exchanges to GTS;
- Accreditation and registration of Traders at remote Trading Places;
- Technical access for all Traders to GTS;
- Technical and administrative support of trading sessions;
- Reporting/formalization of trading results in GTS;
- Clearing and settlement of accounts by trading results.
NAMEX organized 6 Trading Places in St.Petersburg, Rostov-on-Don, Nizhniy Novgorod, Samara, Yekaterinburg and Novosibirsk. During trading session Traders made their bids in a digital trading network, which covered all grain-producing and grain-processing regions of Russia. Access for regional Traders to trading sessions has been provided by Saint-Petersburg Currency Exchange (SPCEX), Rostov Currency and Stock Exchange (RCSE), Nizhegorodskaya Currency and Stock Exchange (NCSEX), Samara Currency Interbank Exchange (SCIEX), Urals Regional Currency Exchange (URCEX) and Siberian Interbank Currency Exchange (SICEX).
While organizing and conducting trading session, where governmental interventions on grain market in 2004 have been made, NAMEX worked in collaboration with Moscow Interbank Currency Exchange (MICEX), which acted as the main Technical Center.
Functional diagram of governmental procurement interventions on grain market in 2004 is shown below in Figure1.
Figure 1
Key indicators of governmental procurement intervention on grain market in 2004 were the following:
1. Trading Period — from 18.02.2004 till 26.07.2004.
2. Total quantity of sold grain was 1,552,881 tons for the sum of 5,959,505,880 RUR, including:
| Exchange |
Trading Turnover (Quantity and Value) |
| Metric Tons |
RUR |
| 1. NAMEX, including sold via Trading Places at the following Exchanges: |
857,395 |
3,373,328 810 |
URCEX (Yekaterinburg) |
93,730 |
379,720,950 |
NCSEX (Nizhniy Novgorod) |
115,325 |
474,142,900 |
SICEX (Novosibirsk) |
391,896 |
1,604,592,450 |
SPCEX (St.Petersburg) |
104,970 |
346,001,750 |
RCSE (Rostov-on-Don) |
41,415 |
167,788,950 |
SCIEX (Samara) |
110,059 |
401,081,810 |
| 2. CRUE |
695,486 |
2,586,177,070 |
3. Number of accredited Participants (Traders) - 307, including:
| Exchange | Number of Participants (Traders) | Share (%) in Total Quantity |
| 1. NAMEX, including sold via Trading Places at the following Exchanges: |
192 |
62.5 |
SPCEX (St.Petersburg) |
10 |
3.25 |
RCSE (Rostov-on-Don) |
20 |
6.51 |
NCSEX (Nizhniy Novgorod) |
23 |
7.49 |
SCIEX (Samara) |
26 |
8.46 |
URCEX (Yekaterinburg) |
23 |
7.49 |
SICEX (Novosibirsk) |
90 |
29.3 |
| 2. CRUE |
115 |
37.5 |
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