BUCE and SPIMEX plan to cooperate in analytics, logistics

The Belarusian Universal Commodity Exchange and the Saint Petersburg International Mercantile Exchange (SPIMEX) are planning to cooperate in analytics and transport logistics.

Exchange of analytical data on prices in the exchange and OTC commodity markets, cooperation in the field of commodity exchange logistics were the two main items on the agenda of the talks between representatives of BUCE and SPIMEX.

In particular, it is proposed to organize mutual access to up-to-date information on prices for key commodity items represented on BUCE and SPIMEX, including ferrous and nonferrous metals, timber, oil products and energy carriers. The price data, after appropriate processing, may be used by the information services of both exchanges to prepare analytical reports and may become part of information products intended for distribution among exchange trade participants.

In the future it may be possible to implement a joint project to create a single exchange information agency within the framework of the Union State, which would aggregate data on the results of trading on the Belarusian and Russian exchanges, providing market participants with reliable information about the dynamics of quotations for the most demanded commodities.

“An important role here is played by the indicator of representativeness of the data, so it is advisable to establish an exchange of price information on the goods that have a significant share of exchange sales. For example, in Belarus it is ferrous metals and their products. About 20% of their total turnover in the country falls on exchange trades. Even higher level of representativeness is typical for exchange quotations on oilseed meal, as well as roundwood and sawn timber. In case of SPIMEX it is oil products, petrochemicals and energy carriers,” said Deputy Chairman of the BUCE Board Aleksei Matsevilo who supervises the analytical department of the Belarusian exchange.

As for logistics and transportation, the main goal of interaction between BUCE and SPIMEX in this area is to ensure timely guaranteed delivery of exchange-traded goods to the buyer with minimum costs for both parties to the transaction. BUCE and SPIMEX bidders are considering the possibility to jointly use the logistics and information infrastructure of the Russian Railways, with which the Saint Petersburg International Mercantile Exchange maintains close partnership relations.

The delivery scheme used at SPIMEX for oil products trading can be taken as a basis. It presupposes the presence of the so-called commodity delivery operators, which keep records and control fulfillment of transactions in exchange trade. As a result, the seller receives guarantees of goods delivery, and the buyer can track in real time the location of products purchased on the exchange at all stages of their transportation.