Electronic Trading Platform Product - Pellets Getting Started Guide v 1.1

Transcription

1 Electronic Trading Platform Product - Pellets Getting Started Guide v 1.1

2 CommErg provides this manual as is, makes no representations or warranties with respect to its contents or use, and specifically disclaims any expressed or implied warranties or merchantability or fitness for any particular purpose. CommErg reserves the right to make changes to the content of this manual, at any time, without obligation to notify any person or entity of such changes. No part of this manual may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or information storage and retrieval systems, for any purpose other than the purchaser s personal use, without the express written permission of CommErg. 2

3 Welcome to CommErg s Electronic Trading Platform for Wood Pellets Thank you for your interest in CommErg s Electronic Trading Platform (ETP) for Wood Pellets. We are a commodities broker specializing in energy products with Pellets being the latest addition to our growing product list. As a name passing broker we act as an intermediary for a wide range of participants within the industry. We do not take positions in the products traded on the CommErg Electronic Trading Platform. Our marketplace in energy products and power profiles is unique, transparent and cost efficient. It allows traders and analysts to easily access products, prices and market information. We are committed to providing our clients the best possible solutions combined with excellent customer service. Having more than a decade of a trading experience in the financial and commodity markets, we understand the need of our customers. CommErg is the only broker in the Wood Pellets Market that trades electronically. This Getting Started Guide will quickly teach you the key concepts for using the Electronic Trading Platform. You will be guided in a simple step by step process through the following topics: Getting Started Geographical Locations Incoterms Key Markets European Retail Certifications European Industrial Specifications Customize Your View Trading Wood Pellets on the Platform Reviewing your Transaction on the Platform Setting Up a Trader on the Platform Commerg Trading Platform This guide is intended to provide you an introduction to the CommErg Electronic Trading Platform. Please refer to the CommErg Electronic Trading Platform help file for a comprehensive explanation of all the features. We hope you enjoy the CommErg Electronic Trading Platform experience. 3

4 Getting Started Getting started on the CommErg Wood Pellets platform is easy. Firstly, you will have received an from Commerg containing information about the platform and its purpose. Additionally, you will be provided with a demo link and an and Password for access to the system. A Commerg broker will have set up the system for you to review, including the available markets, products, specifications, customer access and a list of organization which you may wish to trade with. This list of counterparties can be changed at any time, through notifying a Commerg Broker of you desired counterparties. All these functionalities are set-up by the Commerg Broker to support your trading needs. Login Initially you will be given access to the demo version of the ETP. Access to the live ETP will be granted upon completion of the broker contract and the commencement of Wood Pellets trading within Commerg. Weblink (Demo System): Weblink (Demo System): Password: (your as provided to CommErg) (Provided by ) Once you have entered your address and the system generated password, you have the choice to select Remember me [Tick Box]. If you would like the system to remember your password, select this tick box, if you do not wish the system to remember your password, do not select the Tick box. When you completed the above steps, move your mouse selection arrow to the log in button on the screen and left click [Right Handed Mouse] on the log in button. Once logged in the default screen is the Help screen. 4

5 Help Screen For simplicity, the help screen displays German Power screens, which can be identified by the products under the Trade Screen heading. The Help Screen clearly indicates the price, volume, and the instructions on how to manage and maintain your proposed transactions. Below the Trade Screen examples, there are four (4) additional sections which describe the functionality available to a user. Directly under the Trade Screen, displays a Legend of possible prices colours which can be displayed on the system. The colour coding of each example represents different Bid and Offer types and their explanation. To the right of the Legend on Price colours are the Actions instructions on trade execution on the system. A graphical representation of the Help Screen is provided below. To the right of the Actions instructions is the Order Entry Window. The Order Entry Window is the window which is created by the system when the user selects a product and would like to buy, sell or enter a transaction into the platform. At the bottom of the Help Screen is the Volumes which each transaction size is defined for execution on the Commerg Arena Platform. A graphical representation of the Help Screen is provided above. 5

6 Pellets Once you have reviewed the Help Screen, move the mouse and left click on the Pellets on the left side of the screen. This is the menu which lists various markets available for Trade on the Commerg Arena Platform. The key market a Pellet User is the Pellets Tab. A graphical representation of the Pellets Screen is provided below. When you review the Pellets Market screen, the European and US Wood Pellets market has been broken down into key markets. The Commerg Trading Platform is easily customised for each User if required. There are 25 pre-defined markets in the system, and your Commerg Broker can customise Market conventions for any User to ensure that their specific market characteristics can be presented. The structure of these markets relates to the global trade of wood pellets and incorporates both geographical location, the commercial terms of trade (Incoterms) and the currency that the market trades. 6

7 Geographical Locations The following locations have been identified as the major markets which will be covered on the ETP: ARA (Ams, Rott. Antewerp): NWE (North East Europe): NYH (New York Harbour): NEE (North East Europe): MED (Mediterranean): Scandinavia: Pacific: The Ports of Antwerp/Rotterdam/Amsterdam UK, Netherlands, Belgium, Germany, Northern France & Denmark. Port of New York Harbour, USA Estonia, Latvia, Lithuania, Poland, Russia Ports in the Mediterranean Sea Norway, Sweden, Finland, Iceland, Russia South Korea, Japan, China. Incoterms The Incoterms rules or International Commercial Terms are a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC) that are widely used in International commercial transactions or procurement processes. A series of three-letter trade terms related to common contractual sales practices, the Incoterms rules are intended primarily to clearly communicate the tasks, costs, and risks associated with the transportation and delivery of goods. The allocation of costs between a buyer and a seller, under each contract specification type are represented outlined below: Incoterm 2010 Export customs declaration Carriage to port of export Unloading of truck in port of export Loading on vessel in port of export Carriage (Sea/Air) to port of import Insurance Unloading in port of import Loading on truck in port of import Carriage to place of destination Import customs clearance Import taxes EXW Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer FOB Seller Seller Seller Seller Buyer Buyer Buyer Buyer Buyer Buyer Buyer CIF Seller Seller Seller Seller Seller Seller Buyer Buyer Buyer Buyer Buyer DDP Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller EXW Ex Works The Seller makes the goods available at his/her premises. This term places the maximum obligation on the buyer and minimum obligations on the seller. The Ex Works term is often used when making an initial quotation for the sale of goods without any costs included. EXW means that a buyer incurs the risks for bringing the goods to their final destination. The seller does not load the goods on collecting vehicles and does not clear them for export. If the seller does load the goods, he does so at buyer's risk and cost. If parties wish seller to be responsible for the loading of the goods on departure and to bear the risk and all costs of such loading, this must be made clear by adding explicit wording to this effect in the contract of sale. 7

8 The buyer arranges the pickup of the freight from the supplier's designated ship site, owns the in-transit freight, and is responsible for clearing the goods through Customs. The buyer is responsible for completing all the export documentation. Cost of goods sold transfers from the seller to the buyer. FOB Free on Board The buyer must advance government tax in the country of origin as commitment to load the goods on board a vessel designated by the buyer. Cost and risk are divided when the goods are actually on board of the vessel. The seller must clear the goods for export. The term is applicable for maritime and inland waterway transport only but NOT for multimodal sea transport in containers (see Incoterms 2010, ICC publication 715). The seller must instruct the buyer the details of the vessel and the port where the goods are to be loaded, and there is no reference to, or provision for, the use of a carrier or forwarder. The seller pays for transportation of goods to the port of shipment, loading cost. The buyer pays cost of marine freight transportation, insurance, unloading and transportation cost from the arrival port to destination. The passing of risk occurs when the goods are in buyer account. The buyer arranges for the vessel and the shipper has to load the goods and the named vessel at the named port of shipment with the dates stipulated in the contract of sale as informed by the buyer. CIF Cost, Insurance and Freight Seller must pay the costs, insurance and freight to bring the goods to the port of destination. However, risk is transferred to the buyer once the goods are loaded on the vessel. DDP Delivered Duty Paid This term means that the seller delivers the goods to the buyer to the named place of destination in the contract of sale. A transaction in international trade where the seller is responsible for making a safe delivery of goods to a named destination, and pays all costs in bringing the goods to the destination including import duties and taxes. The seller bears the risks and costs associated with supplying the goods to the delivery location and is responsible for paying the duty and other customs clearing expenses. The seller is not responsible for unloading. Currencies EUR: EUR Equiv. USD USD Equiv. Euro Currency Market. Transact in EURO and defined as the Common Currency of the European Union. Euro Equivalent Priced Market. Transact in EURO, GBP, DKK, RUB and other currencies including the EURO. This facilitates transactions in various currencies and destinations with the countries surrounding and including the European Union. United States of American Dollar. This facilitates transactions in various currencies and destinations with various countries entitled to use the United States of American Dollar. United States of American Dollar Equivalent Market. This facilitates transactions in various currencies and destinations with various countries. 8

9 Key Markets Incorporating both key the geographical locations and the commercial terms of trade, Commerg has defined the following markets and products representing 16 key tradable markets. The markets are easily adjustable and can be specified upon request. Initial markets are selectable from below. CIF ARA (EUR) CIF BUSAN (USD Equiv.) CIF SOUTH HAMPTON (GBP) CIF GENOA (EURO) FOB NWE (EUR Equiv.) FOB NYH (USD) FOB NEWPORT (USD) FOB AARHUS (DKK) EXW NWE (EUR Equiv.) EXW St. PETERSBURG (EUR Equiv.) EXW MED (EUR Equiv.) EXW East Coast USA (USD Equiv.) DDP NWE (EUR Equiv.) DDP NORTH EAST EUROPE (EUR Equiv.) DDP MED (EUR Equiv.) DDP SCANDINAVIA (EUR Equiv.) Below is a representation of a market CIF NWE (EUR Equiv.). The Pellet products are displayed under the Product Name. The Products include Industrial Pellets and European Standard products ENPlus certified products. 9

10 European Retail Certifications The European Retail Market has defined the key Wood Pellet specifications and Product Limitations into a number of Categories. The Retail Wood Pellet categories available on the Commerg Wood Pellet platform are: ENplus-A1 ENplus-A2 EN-B Table 1: Wood types that are permitted to be used for wood pellet production ENplus-A1 ENplus-A2 EN-B Stem wood Whole trees without roots Chemically untreated residues from the wood processing industry Stem wood Logging residues Bark (1) Chemically untreated by-products and residues from the wood processing industry 1.1 Forest, plantation and other virgin wood Chemically untreated by-products and residues from the wood processing industry Chemically untreated used wood (2) (1) From sawmill activities and cork residues. (2) Demolition wood is excluded. Demolition wood is used wood arising from demolition of buildings or civil engineering installations. 10

11 ENplus-handbook 11

12 European Industrial Specifications I1 Industrial I2 Industrial I3 Industrial 12

13 Customize your view The Pellets Button at the top of your screen contains a settings icon which unveils Edit, Delete and Copy functionality which will enable you to customize your view. By selecting the Edit option the following screen will appear: Here you can add new modules from the drop down menus as well as removing modules if you wish. Don t forget to save after you have made your changes. 13

14 Trading Wood Pellets on the Platform Placing an invitation to Sell Once you are ready to trade, an invitation to trade can be initiated by clicking on either the bid or the ask cell of the desired Product within the desired market. When a user clicks on the Bid cell, the following trade screen will appear. Enter the desired bid price, the volume that you wish to buy and whether it is an all-or-nothing or an indication price. Once you have validated the Price, Volume, Code and are willing to execute the invitation with the specified transaction detail, hit the Confirm button. Other traders operating on the platform will now see this invitation to transact and can respond to your invitation. The Ticker Screen will show the contract which has been entered into the platform. 14

15 All-or-Nothing An All or Nothing Offer is an offer to trade only the total amount of Volume which is specified in the invitation. If a trade offers an All or Nothing transaction, which is Industrial I1 40 mm USD190, 10,000 tonne in CIF ARA, then the offer can only be executed for the full volume. Participants on the platform are able to negotiate price, location and delivery through a Commerg broker before execution of the transaction, although the volume is fixed in the residual contract. Indication An Indication Offer is an offer to trade an amount of Volume at an indicative price. If a trade offers an Indication transaction, which is Industrial I1 40 mm USD190, 10,000 tonne in CIF ARA, then the offer can be executed for partial volume. Participants on the platform are able to negotiate price, volume, location and delivery through a Commerg broker before execution of the transaction, although the volume is fixed in the residual contract. Placing an invitation to Buy Once you are ready to trade, an invitation to trade can be initiated by clicking on either the bid or the ask cell of the desired Product within the desired market. When a user clicks on the Bid cell, the following trade screen will appear. Enter the desired offer price, the volume that you wish to sell and whether it is an all-or-nothing or an indication price. Once you have validated the Price, Volume, Code and are willing to execute the invitation with the specified transaction detail, hit the Confirm button. Other traders operating on the platform will now see this invitation to transact and can respond to your invitation. All-or-Nothing An All or Nothing Bid is an offer to trade only the total amount of Volume which is specified in the invitation. If a trade bids an All or Nothing transaction, which is Industrial I1 40 mm USD190, 10,000 tonne in CIF ARA, then the bid can only be executed for the full volume. Participants on the platform are 15

16 able to negotiate price, location and delivery through a Commerg broker before execution of the transaction, although the volume is fixed in the residual contract. Indication An Indication Bid is an offer to trade an amount of Volume at an indicative price. If a trade bids an Indication transaction, which is Industrial I1 40 mm USD190, 10,000 tonne in CIF ARA, then the offer can be executed for partial volume. Participants on the platform are able to negotiate price, volume, location and delivery through a Commerg broker before execution of the transaction, although the volume is fixed in the residual contract. The Ticker Screen will show the contract which has been entered into the platform Ticker Screen (All Tab) There are three tabs across the Top of Ticker Screen. The All Tab shows all transaction which have been entered onto the platform, this includes all transaction proposals from all participants on the system. Ticker Screen (Own Tab) The Own Tab shows all transaction which have been entered onto the platform from the Traders and or sale persons which has been logged into the platform by that user name. Ticker Screen (Company Tab) The Company Tab shows all transaction which have been entered onto the platform from the all Traders and or sale persons from your company. 16

17 Reviewing your Trades on the Platform Once you have executed a transaction, offer or bid, the user can click on My Deals in the Trades section. The user will see the following screen appear. The screen details the transactions which have been executed or proposed by the sales person and / or trader. Across the screen are the complete details relating to each transaction, including any confirmation on transactions executed. The confirmation spreadsheets are provided to the user in PDF, Excel and csv. Additionally, the user can click on Company Deals in the Trades section. The user will see the following screen appear. The screen details the transactions which have been executed or proposed by the company as a whole. Across the screen are the complete details relating to each transaction, including any confirmation on transactions executed. The confirmation spreadsheets are provided to the user in PDF, Excel and csv. 17

18 Setting up a Trader on the Platform When setting up your personal information in the system, the User selects the Profile Tab and the following screen appears. The User should enter the details to ensure that the Commerg Broker is about to contact them with specific Bids, Offers, and / or Invitations on a particular transaction. Commerg currently uses Yahoo and Skype, as well as telephone to contact its clients to ensure that the communication channels are open for the quick exchange of information. The Shared Buttons on the right hand side of the screen indicates that the information can be shared and is shared with the Commerg Broker only. The User can enter the following information: First Name Last Names Telephone Number Skype Account Yahoo Account Change Password Confirm Change Password Language can be selected, and in the Commerg system the current options are English and Dutch, this supports the communication channels between the Commerg Broker and the company representatives. 18

19 Commerg Trading Platform Commerg is pleased to provide you this simple User Manual on the Commerg Wood Pellets Brokerage Platform. Commerg is pleased to offer multiple products and some other products available for trading on the platform are: USA sourced Wood Pellets European Industrial Wood Pellets European Retail Wood Pellets Long- Term Electricity (i.e. German, Dutch, Belgium, Switzerland, and other countries upon request) Short-Term Electricity (i.e. German, Dutch intra-day Electricity and stability auction markets) European Gas European Energy Spreads Electricity Profiles (Variable Volume and Price products) Exotic OTC Electricity Options Off-Standard Energy Products 19