The Warehouse Receipt. Delivery Documentation - ASX 24 Greasy Wool Futures October 2010

Transcription

1 The Warehouse Receipt Delivery Documentation - ASX 24 Greasy Wool Futures October 2010

2 Using this Guide This guide explains the Warehouse Receipt. Key subjects covered include Delivery Documentation The Delivery Period The Delivery Cycle The Warehouse Receipt Endorsement and claiming physical wool ASX Contact Details

3 Delivery Documentation Sellers holding open positions in a Greasy Wool Contract at expiry must have the wool physically stored in an ASX Approved Warehouse. To effect delivery against an open short position there are three sets of documents that need to be submitted by the Seller to their Clearing Participant, who in turn submits them to ASX Clear (Futures). They are; AWTA Test Certificates (original), AWEX Appraisal Certificates (original), and Warehouse Receipts (issued by the Approved Warehouse once the above documents are sighted). Detailed explanations of the other documents can be accessed by clicking on the links.

4 The Delivery Period Greasy Wool Futures contracts expire on the third Thursday of the contract month at 12pm. The delivery period for the contract commences on the Friday prior to the third Thursday of the contract month. If that Friday does not fall on a business day, the delivery period will commence on the business day immediately preceding that Friday. Trading in the contract continues each day during the delivery period. Sellers can decide to tender (deliver) against a sold contract on any day during this period.

5 The Delivery Cycle Seller Approved Warehouse Original Delivery Documents Seller s Clearing Participant Buyer Buyer s Clearing Participant

6 Warehouse Receipt The Warehouse Receipt (WR) is a negotiable instrument that is required to make delivery against ASX Wool Futures. It details the location of the Approved Warehouse and the particulars of the wool being delivered. A WR can only be created if the wool resides in an ASX Approved Warehouse. It is the responsibility of the ASX Approved Warehouse at which the futures delivery is intended to be made to issue the WR. Each warehouse location has an individual Warehouse ID. 1. Seller requests Warehouse Receipt from Approved Warehouse 2. Approved Warehouse, once AWEX Certification and Applicable AWTA Test Certificates are sighted and cross checked, issues WR to Seller. If the seller is delivering against a number of sold (short) futures contracts, the ASX Approved Warehouse must issue a separate WR for each futures parcel of wool being delivered. For example, if there were 3 contracts being delivered from the same store, 3 separate WR would need to be created. If the seller is delivering wool from multiple warehouses, the seller is allowed to obtain a maximum of four WR for each futures contract being delivered. The multiple warehouses must be within the same state. It is the seller s responsibility to inform the Approved Warehouse operator whether or not Wool Tax has been paid. If Wool Tax is not declared, this is recorded on the Warehouse Receipt and it will be deducted from the final selling price.

7 Warehouse Receipt Front

8 Warehouse Receipt Back

9 Warehouse Receipt Front SFE box marked for Greasy Wool deliveries. Name of Approved Warehouse ID for Approved Warehouse Location Company who requested the Receipt Date Receipt Issued Authenticate Receipt by Approved Warehouse Authorised Signatory Information identifying wool over which this Warehouse Receipt relates.

10 Endorsement The Warehouse Receipt is a negotiable instrument that can be freely traded outside the futures market operated by ASX. Ownership must therefore be noted by endorsing the back of the receipt. To out turn physical wool from the store, the Warehouse Receipt must be endorsed by the owner of the wool (the buyer) and then returned to the Approved Warehouse.

11 Endorsement Process 1. Seller endorses the Warehouse Receipt and gives the Warehouse Receipt to their Clearing Participant. 2. Clearing Participant endorses the Warehouse Receipt and tenders it to ASX Clear (Futures) for possible Delivery. 3. ASX Clear (Futures) endorses the Warehouse Receipt. 4. If the Seller tenders the wool (delivers) then ASX Clear (Futures) allocates the Warehouse Receipt to the Clearing Participant for the Buyer. 5. The Buyer Clearing Participant endorses the receipt and either: Re-tenders the Warehouse Receipt to ASX Clear (Futures) (on the client s instruction to re-tender), or Passes the Warehouse Receipt to the Buyer who signs to accept the endorsement. The Buyer may then collect the Wool from the Approved Warehouse when the original Warehouse Receipt has been endorsed and returned to the Approved Warehouse. The Buyer may also sell the Warehouse Receipt privately. Where the wool has been delivered outside the futures market, that is, the negotiable Warehouse Receipt has been transferred privately, there will be no ASX Clear (Futures) or Clearing Participant signatures.

12 The endorsement process Seller s Clearing Participant Seller Approved Warehouse Buyer Buyer s Clearing Participant

13 Seller Endorsement Seller A Clearer B 1. Seller A fills in their company name under from and nominates the company name for the Clearer B to whom the receipt will now be sent for endorsement. Clearer B is the seller s Clearing Participant. 2. An authorised signatory for Seller A signs here and sends to Clearer B.

14 Seller s Clearing Participant Endorsement Seller A Clearer B Clearer B ASX Clear (Futures) 1. An authorised signatory for Clearer B signs here and dates the Receipt. 2. Clearer B fills in their company name under from and nominates ASX Clear (Futures) to whom the receipt will now be sent for endorsement and processing. 3. An authorised signatory for Clearer B signs here and then sends to ASX Clear (Futures).

15 ASX Clear (Futures) Endorsement Seller A Clearer B Clearer B ASX Clear (Futures) ASX Clear (Futures) Clearer C 1. An authorised signatory for ASX Clear (Futures) signs here and dates the receipt. The wool, assuming it meets the delivery criteria, is entered into Deliverable Stock. 2. Following tender, ASX Clear (Futures) fills in their company name under from and nominates Clearer C, to whom the receipt will now be sent. Clearer C is the clearing participant for the buyer who has taken delivery.

16 Buyer s Clearing Participant Endorsement Clearer B Seller A Clearer B ASX Clear (Futures) Clearer C ASX Clear (Futures) Clearer C Buyer D 2. Clearer C fills in their company name under from and nominates Buyer D, to whom the receipt will now be sent for endorsement. Buyer D is the new owner of the wool. 1. An authorised signatory for Clearer C signs here and dates the receipt. 3. An authorised signatory for Clearer C signs here.

17 Buyer s Endorsement Seller A Clearer B Clearer B ASX Clear (Futures) ASX Clear (Futures) Clearer C Clearer C Buyer D 1. An authorised signatory for Buyer D signs here and dates the receipt. The Warehouse Receipt is now the property of Buyer D. Buyer D can now either; sell the Warehouse Receipt to another buyer either through the futures market or privately, or claim the wool as described on the Warehouse Receipt from the Approved Warehouse. The wool will only be out turned on presentation of the original receipt to the Approved Warehouse.

18 Private Sales Prior to admission to Deliverable Stock with ASX Clear (Futures) (ASXCF), should you wish to sell your futures parcel of wool privately rather than deliver against a futures position, you must endorse the Warehouse Receipt to the buyer. If the wool has already been admitted to Deliverable Stock, ASXCF may be holding your documentation. Your Clearing Participant (CP) will need to lodge your Safe Accommodation Receipt (SAR) with ASXCF requesting the release of your documentation. The Warehouse Receipt will be endorsed to your CP who will endorse it over to you, so that you can then endorse it over to the buyer. If the new buyer wishes to leave the wool as Deliverable Stock, they must endorse the Warehouse Receipt to their CP for re-submission to ASXCF.

19 Warehouse Receipt/s Check List Description Acceptable Parameters Date of Issue Number of Bales in Wool Lot Brand/Description Bale Number Wool Tax Withheld Less than 1 year prior to admittance Equals number of bales on IWTO Test Certificate. No more than 1 wool lot may have 3 bales or less. Equals Bale Number and Description on IWTO Test Certificate Yes If no, note down for Registry lodgement process. Warehouse Signed Clearing Participant Signed (back) Number of warehouses Less than or equal to 4 in the same state

20 Further information Contract Specifications Delivery Information Dougal Hunter Manager Agricultural Derivatives ASX Limited Office:

21 Disclaimer This material contains information only. The information is for education purposes only and any advice should be sought from a professional adviser. If you are seeking advice (including a recommendation or opinion) about a financial product you should consult an Australian Financial Services Licensee. To the extent permitted by law, no responsibility for any loss arising in any way (including by way of negligence) suffered by anyone acting or refraining from acting as a result of this material is accepted by ASX. This disclaimer extends to any private discussions or correspondence with the presenter of this information. This document is a guide only. If any discrepancy exists between the document and either the Deed for Approved Warehouse or the Operating Rules for ASX 24 and ASX Clear (Futures), the Deed and Operating Rules prevail ASX Limited ABN