The Belarusian Universal Commodity Exchange located in Minsk is the only centralized trading platform of the republic. Over the course of 12 years of work, it has shown a steady increase in the number of registered participants.
Branches of the exchange operate in all regional centers of Belarus. A representative office of this trading platform is open in the Russian Federation.
Destination
The main goal of the foundation of the Belarusian Universal Commodity Exchange was to create a single organized wholesale market for products of strategic importance to the economy of the republic. The management of the trading platform seeks to establish and develop partnerships with foreign counterparties, primarily with commercial companies from countries located in the post-Soviet space. The Belarusian Universal Commodity Exchange is a pilot project aimed at developing a mechanism for the functioning of a centralized market.
Activities
The first large-scale electronic trading platform of the republic considers its task to improve the transparent procedure for concluding transactions, create healthy competition and ensure free pricing based on real demand and supply.
The Belarusian Universal Commodity Exchange provides the general public with reliable information on the current value of various types of raw materials and industrial products. In addition, it provides statistics that reflect the dynamics of prices and the volume of transactions.
Wide choose
The Belarusian Universal Commodity Exchange has a number of features. The main unique features of the trading platform are a wide range of products, a flexible approach to the deadlines for fulfillment of obligations by buyers and sellers, as well as orientation to participants representing real business. Currently, the practice of using strictly standardized contracts is widespread on world exchanges. This means that only well-known types of goods with accurate and unchanged quality characteristics are allowed to bid. All parameters are carefully recorded in the specifications of the contracts. Such an order naturally leads to a significant limitation of the assortment of goods.
However, any electronic trading platform prefers to deal with clearly defined lots in terms of quantity and quality. The Belarusian Universal Commodity Exchange has chosen a different path. It permits the submission of applications for the purchase and sale of tangible assets, which, according to international standards, are considered unsuitable for organized trade. Examples include antiques and works of art.
Physical supplies
Other important features of the exchange are the lack of speculative capital and the active participation of small and medium-sized businesses. In the world, the tendency to conclude deals on trading floors is strengthened not for the purpose of buying or selling physical goods, but only for profit from changes in quotations. According to statistics, 99% of contracts on exchanges do not end with real deliveries of tangible assets. There are so-called financial futures that do not involve the shipment of cash goods.
The Belarusian Exchange is an exception to the global trend. It provides for various options for the supply of goods: immediate and delayed. However, the exchange does not create opportunities for pure financial speculation. This feature of the trading platform attracts small and medium-sized enterprises that are in search of an affordable market.
Registration of participants
OJSC "Belarusian Universal Commodity Exchange" is open for work with legal entities and individuals: both residents of the republic and representatives of other countries. You can choose the status of a direct bidder or carry out transactions through a broker. Those wishing to conclude contracts directly must provide a package of documents for accreditation on the exchange and receive an electronic digital signature that has the same legal force as a handwritten one. The Belarusian trading platform makes it possible to conduct transactions from anywhere in the world via the Internet. The exchange is developing an electronic document management system.
Organization of transactions
The main task of the intermediary is to ensure that the seller and the buyer fulfill the obligations stipulated by the contract. The Belarusian Exchange uses a simple and proven system that guarantees timely payment and shipment of goods. In accordance with the rules, both parties to the transaction deposit certain amounts of money into the accounts of the trading floor. The exchange blocks these funds, which become a guarantee ensuring the full and timely execution of the terms of the contract by both the seller and the buyer.
After receiving documentary evidence of payment and delivery, the auction organizer unlocks the cash deposits and returns them to the owners. In case of failure to fulfill obligations under the contract, the guarantee amount may be transferred to the injured party or withheld in favor of the exchange. In addition, sanctions are provided for violators in the form of fines and termination of admission to trading. Conflict situations between sellers and buyers are considered by the arbitration commission of the Belarusian Universal Commodity Exchange. It compares favorably with ordinary civilian courts by the tight deadlines for the proceedings.
Major industries
Purchases at the Belarusian Universal Commodity Exchange are carried out in the interests of both domestic and foreign markets. The turnover of the trading platform is formed mainly due to three sectors: metallurgy, the agricultural sector and forestry. For each of these product groups, transactions totaling several hundred million euros are made annually. The palm in terms of trading volume belongs to the products of the metallurgical industry. This is due to the high demand for this raw material in the domestic market of the republic. The annual needs of the giants of the Belarusian engineering industry are hundreds of thousands of tons of ferrous and non-ferrous metals. Large enterprises of heavy industry are key customers of the commodity exchange.
An important role in the economy of Belarus is played by the agricultural sector and forestry. The exchange serves as the main platform for the sale of products of these industries. The organized Belarusian product market is characterized by systematic development. The exchange is gradually establishing business contacts with foreign partners and integrating into global economic processes.