Belarusian Commodity Universal Exchange. Commodity Logistics

Belarusian Commodity Universal Exchange (BUTB) was founded in 2003. The first trading on the market took place in June 2005. Today, the stock exchange trades in rolled metal products, forest products, agricultural, consumer goods. Since 2012, the derivatives market has been operating on the stock exchange, where commodity futures are presented, which allow hedging price risks and increasing the efficiency of entrepreneurial activity, making profit from changes in market prices. In the derivatives market section, futures for metal products and oil product price indices are presented. The company plans to further expand the boundaries of its activities and increase the number of available assets.

The exchange aims to constantly improve the level of service for participants in transactions. For these purposes, an improved system for automatic processing of trading results, price changes, the ability to work online, an electronic system for collecting applications was introduced. The founders of the exchange are the Republic of Belarus, Belarusbank, Belresursy, Beleximgarant.

Functions of the Belarusian Commodity Universal Exchange OJSC

The main functions of the exchange include the development of wholesale markets in the country, improving the efficiency of the economy, optimizing state regulation of trade on national and international markets, developing relations between sellers and buyers, increasing the efficiency of export of goods from Belarusian manufacturers, creating innovative technical solutions that contribute to increasing the transparency of entering into exchange transactions.

BUCE Benefits

The Belarusian Commodity Universal Exchange has the following advantages:

• Freedom of pricing, due to the ability to set real prices for goods formed through the influence of economic factors such as supply and demand.
• A wide range of assets, including over 400 items of goods (as of the beginning of 2014).
• The formation of healthy competition among sellers and buyers, which makes it possible to purchase goods at the best price.
• A simplified search process for suppliers and customers.
• Unlimited possibilities for concluding deals in a short time.
• Security and legal literacy in transactions.
• All exchange disputes and disagreements between participants in exchange transactions may be considered in arbitration.
• To control the quality of goods traded on the exchange, an examination is provided from independent companies.
• Provision of freight forwarding services to exchange participants.
• The qualified help of specialists.
• The possibility of public procurement without tenders, competitions and other formalities.
• The exchange provides an opportunity to develop intermediary services of brokers.
• Each exchange participant has the opportunity to conclude transactions in remote access mode.
• Free multi-functional software and training for traders.
• Providing information sources, training materials, analytical data, forecasts, marketing research for exchange participants.
• The wide geography of the branch network of the exchange, which makes it possible to conduct tenders in such cities as Mogilev, Grodno, Brest, Gomel, Vitebsk without leaving for Minsk. The branch network also covers the territory of other states (there are representative offices in Moscow, Riga, Vilnius).
• The provision of analytical services for the study of the state of commodity markets, the preparation of reviews by industry. Following the results of the held bidding, price quotations are compiled, and indices are calculated. All information is open and accessible to exchange participants, as they are published on the official website.
• The quarterly Bulletin Magazine is aimed at forecasting and analyzing the development of wholesale markets, collecting information about events in the country and the world, and the results of exchange sessions.

How to bid on the Belarusian Commodity Universal Exchange

Adults who have civil or labor relations with brokerage companies may be allowed to bid on BUCE. To register traders, an electronic digital signature (EDS) is required. After that, you need to fill out an application, certify it with an electronic digital signature and send it to the exchange administration. Original documents are provided to the certification center. Traders have the opportunity to undergo free full-time training. To obtain remote access to conduct trading on the exchange, you will need to download and install special software (digital signature, application filing system, trading modules), study the instructions for working on the exchange. In case of questions, there is always the opportunity to ask their representatives of the exchange by contacting the contact details indicated on the exchange’s website -

Name

In Russian:

* full: Open Joint-Stock Company Belarusian Universal Commodity Exchange,
  * abbreviated: Belarusian Universal Commodity Exchange OJSC,
  * abbreviation: BUCE.

In English:

* full: Open Joint Stock Company Belarusian Universal Commodity Exchange,
  * abbreviated: OJSC Belarusian Universal Commodity Exchange,
  * abbreviation: BUCE.

Form of incorporation

Public corporation.

Features of the legal status

OJSC “Belarusian Universal Commodity Exchange” operates in accordance with the Law of the Republic of Belarus dated January 5, 2009 “On Commodity Exchanges” and the Exchange Charter.

The main types of ongoing economic activities:

Organization and regulation of the commodity exchange market;
   organization of electronic wholesale trade in goods;
   conducting electronic auctions for public procurement of goods (works, services);
   creation of a derivatives market in the Republic of Belarus;
   market research and public opinion;
   legal activities;
   provision of legal services;
   the provision of logistics services;
   publishing activities;
   activities for the technical protection of information (including cryptographic methods, including the use of electronic digital signatures).

Location

Republic of Belarus, 220099, Minsk, ul. Kazintsa, 2-200.

Communication Details

Phone: (10 375 17) 224 48 25.
  Email: [email protected]
  Web site: www.butb.by

Date of formation

May 25, 2004

Short story

December 30, 2003
In accordance with Decree of the Council of Ministers of the Republic of Belarus No. 1719, a decision was made to create the Belarusian Universal Commodity Exchange OJSC.
June 16, 2004
  Decision of the Council of Ministers of the Republic of Belarus No. 714 “On measures for the development of exchange trading on commodity exchanges” was adopted, determining the procedure for conducting exchange transactions and other issues of organizing exchange trading in the Belarusian Universal Commodity Exchange OJSC.
June 2, 2005
  The first exchange trading (export of forest products) took place. From the same month, regular trading in metal products began.
january 2006
  Beginning of bidding for agricultural products section.
September 14, 2006
  The President of the Republic of Belarus signed Decree No. 577 “On Certain Issues of the Activities of the Belarusian Universal Commodity Exchange” Open Joint-Stock Company, pursuant to which the Government of Belarus approved the Development Program of the Belarusian Universal Commodity Exchange OJSC for 2007-2010.
july 2008
  The entry of the Belarusian Universal Commodity Exchange OJSC into the International Association of Exchanges of the Countries of the Commonwealth of Independent States (MAB CIS).
february 2009
  Beginning of work on the formation of exchange logistics, the main links of which are exchange carriers, exchange warehouses and exchange experts, including non-residents of the Republic of Belarus.
may 2009
  The work of the industrial and consumer goods section began, within which exchange trading participants were given the opportunity to carry out exchange transactions via the Internet on a wide range of goods. Currently, about 30 stock exchanges are registered in Belarus, Belgium, Bulgaria, Germany, Kazakhstan, Latvia, Lithuania, Poland, Russia, Ukraine and Estonia; 7 exchange carriers from Belarus, Lithuania and Poland; 6 exchange experts from Belarus and Poland.
May 26, 2009
  The First Deputy Prime Minister of the Republic of Belarus approved the Concept for the Establishment of an Derivative Commodity Market in the Republic of Belarus, which provides for the trading of commodity futures and options on the basis of the Belarusian Universal Commodity Exchange OJSC.
August 7, 2009
  The Law of the Republic of Belarus of January 5, 2009 No. 10-Z “On Commodity Exchanges” entered into force.
December 15, 2010
  The Development Program of the Belarusian Universal Commodity Exchange OJSC for 2011-2015 was approved, which envisages the construction of an exchange holding.
December 31, 2010
By Decree of the Council of Ministers of the Republic of Belarus No. 1923, the exchange was determined as the operator of the electronic trading platform for the implementation of government purchases of goods (works, services) at electronic auctions since 2011 (the organization and conduct of electronic auctions began on March 1, 2011).
march 2011
  The entry of the Belarusian Universal Commodity Exchange OJSC into the Association of Future Markets, AFM.
November 28, 2011
  The exchange has registered with the GS1 Bel Automatic Identification Association (a member of the GS1 International Organization, which is responsible for the standardization of accounting and bar coding of logistics units).
February 17, 2012
  An Agreement of cooperation was signed with the MICEX Electronic Procurement Marketplace, designed to develop cooperation in organizing and conducting trade and procurement procedures using electronic auctions.
May 18, 2012
  A Partnership Agreement was signed between the Belarusian Universal Commodity Exchange and the Russian Union of Metal Products Suppliers (RSPM), providing for mutual information communication between BUTB and RSPM, as well as mutual obligations for closer cooperation between producers and consumers of metal products of the two countries.
November 16, 2012
  Regular trading began in the derivatives market section of the exchange. The first instrument admitted to circulation in the section was the settlement futures contract for hot-rolled round steel. On February 4, 2014, the futures contract on rebar was put into circulation.
May 29, 2013
  An Agreement on cooperation in the development of exchange markets was signed with Eurasian Trade System Commodity Exchange JSC (UTS, Kazakhstan), within the framework of which integration of tenders will be carried out in order to facilitate trade and economic cooperation between exchange trading participants accredited to BUTB and UTS, and their customers. At the initial stage of integration, it is planned to organize trade in four basic assets that are strategic for the two countries - milk powder and wood from Belarus, wheat and ferrous metals from Kazakhstan,
August 29, 2013
  A Cooperation Agreement was signed with CJSC St. Petersburg International Commodity and Raw Materials Exchange (SPIMEX), which expands the range of futures contracts traded on BUCE through futures for the SPIMEX calculated Petroleum Product Price Index - Regular-92. The first trading in this futures took place on July 1, 2014.
March 6, 2014
  On the initiative and with the participation of BUCE, the International Association of Exchange Logistics and Brokers “BLB” was created, which included about 20 organizations from Belarus, Germany, Kazakhstan, Latvia, Poland, Russia and Ukraine, linking their activities with the exchange movement and interested in its development . Among the objectives of the Association are to make proposals on improving exchange legislation, to widely introduce into the exchange trading a complex of logistic services for bidders in order to service exchange contracts and create optimal conditions for the delivery of purchased goods to consumers.
April 24, 2014
  A Partnership Agreement was signed with the National Union of Dairy Producers (SOYUZMOLOKO) and a Cooperation Agreement with the Russian Union of Dairy Enterprises, providing for the further development of Belarusian-Russian contacts in the field of expanding the use of exchange trading instruments for the procurement and sale of dairy products and coordinated activities towards the formation of a single, stable dairy market in the context of the Eurasian Economic Union.

Branches and Representative Offices

Branches of the exchange operate in the regional centers of the Republic of Belarus (Brest, Vitebsk, Gomel, Grodno, Mogilev). A representative office of the exchange is open in the Russian Federation (Moscow), representatives in Lithuania (Vilnius), Latvia (Riga), Bulgaria (Sofia), Sweden (Stockholm), the Republic of South Africa (Johannesburg) work.

Managment structure

The supreme body is the General Meeting of Shareholders.
  Governing Body - Supervisory Board.
  The executive body is the Management Board.

Management Features

In accordance with the Law of the Republic of Belarus “On Commodity Exchanges”, exchange activity is not licensed.

Shareholders

The total number of shareholders is 7.
  The total number of authorized shares is 2,540,586.

Chairman of the Supervisory Board

Minister of Commerce of the Republic of Belarus Valentin Sergeyevich Chekanov.

Chairman of the Board

Salikov Arkady Semenovich.

Capital
  (as of January 1, 2014, thousands of US dollars)

Statutory fund - 1 852.

Subsidiaries and affiliates
  (as of January 1, 2014)

UE Center for Exchange Information Technologies (CBIT) www.cbit.by) The main activity is the development of exchange technology software.

UE "Certification Center" BUTB "  (Minsk, Republic of Belarus www.ecp.by) The main activity is the provision of electronic document management implementation processes, the provision of services for the distribution of public keys for verifying electronic digital signatures.

BirZheks CJSC  (Minsk, Republic of Belarus). It provides brokerage services for transactions of sale of industrial and consumer goods, timber, agricultural and metal products.

UE “Center of exchange services, Mogilev”  (Republic of Belarus www.cbu.by) Created on the basis of the Mogilev branch of BUTB. It provides brokerage services for transactions of sale of industrial and consumer goods, timber, agricultural and metal products. Organizes electronic auctions at Belarusian and Russian sites.

Traded Instruments

* metal products (ferrous and non-ferrous metals and products from them, scrap and waste of ferrous and non-ferrous metals, coke, coal, electrical products);

* forest products (round timber, lumber, plywood and fiberboard, chipboard, MDF, OSB, paper products, fuel wood chips, fuel briquettes and pellets, wood harvesting services, products for the manufacture of windows and doors);

* agricultural products (skimmed milk powder, whole milk powder, whey powder, butter, cheeses, cottage cheese, canned milk, technical casein, sunflower and soybean meal, vegetable oils and oilseeds, feed additives, wheat and rye flour, meat, leather raw materials, endocrine-enzyme raw materials, plant protection products);

* industrial and consumer goods (a wide range of goods from office supplies and foodstuffs to complex lathes and machines);

* futures contract for the rental of high-quality rolled steel round;

* futures contract for rebar;

* The futures contract for the SPIMEX Petroleum Product Price Index - Regular-92.

As of January 1, 2014, the list of goods admitted to exchange trading totals about 400 items.

Key Information Technology

* electronic trading systems for sections of forest products, metal products, agricultural products, derivatives market, industrial and consumer goods;
  * electronic system for collecting applications for participation in exchange trading;
  * the opportunity to participate in tenders from workplaces of the central trading platform of the exchange and workplaces in branches and representative offices;
  * the ability to work with electronic trading systems in remote access via the Internet;
  * An automated system for processing the results of exchange trading and price quotes;
* electronic trading platform for public procurement of goods (works, services) at electronic auctions.

Information and analytical services

The exchange provides informational and analytical services for the study and monitoring of the state of commodity markets, prepares market and industry analytical reviews. Based on the results of exchange trading, he quotes prices and calculates commodity indices.
  The above work is carried out on a regular basis, relevant information is posted on the official website of the exchange.

Magazine "Exchange Bulletin"  Belarusian Universal Commodity Exchange OJSC is published quarterly. The main topics of the newsletter are: information on stock market news, stock trading results, stock quotes, analysis and forecasts of the development of commodity markets, legal advice, practical recommendations on the most efficient use of stock trading to organize a business and search for new markets, etc.

In addition, the Belarusian Universal Commodity Exchange OJSC issues an electronic publication every month “Exchange Commodity Market Overview”, which includes analytical materials on the state of the exchange market, quotes and trading results, as well as comprehensive information about the activities of the exchange.

Belarusian Exchange, commodity trading on an electronic platform - a place where a buyer and a seller from the metallurgical, woodworking and agricultural fields meet to conclude transactions via the Internet.

Site performance

In 2016, more than 410 million euros were sold at the forest products site of timber and its products. And more than 446 million euros amounted to trade in the metal products section.

Who can become a member

The right to participate in trading in the status of a visitor or broker can be obtained:

• legal entities and individual entrepreneurs of the Republic of Belarus;
• foreign and international legal entities;
• organizations that are not a legal entity;
• by individuals.

Learning Documentation

Those who appreciated the advantages of trading on BUCE and have a desire to trade on an electronic platform need to study a number of documents:

1. First of all, familiarize yourself with the range of commodities.
2. Then, devote time to familiarizing yourself with the interpretation and clarification of concepts and terms that are used in the regulatory legal acts of the Belarusian Commodity Exchange.
3. Familiarity with the Belarusian legislation will help to avoid mistakes and violations, which will make trade efficient and profitable.
4. The Belarusian Exchange, whose product sections have their own regulations, has made them available for review on their website.
5. Get the concept of exchange fee rates in different trading sections in order to take them into account when planning expenses.
6. On the Belarusian Exchange, commodity trading transactions are controlled by a special department, which minimizes trade-related risks. Familiarization with the methods of influence on contractors who do not fulfill their obligations in full and on time, it is advisable to conduct before the start of work.

7 steps to ...

If you still want to proceed with specific actions, then you need to go through seven preparatory procedures for trading on the Belarusian Commodity Exchange.

1. Decide on your status. You can take part in the auction as a visitor or broker. Visitor status gives you the right to trade for yourself. The status of a broker adds to the visitor’s rights the right to provide intermediary services as a professional.
2. Having decided on the first position, the legal entity - the participant of the Belarusian Exchange on the commodity platform - represents traders, i.e. employees of their company, who will be given the right on behalf of the visitor to participate in the auction and conclude transactions.
3. Since the peculiarity of electronic trading is the execution of transactions through Internet services, it is necessary to go through the procedure for obtaining a digital signature, which has the strength of a person’s own signature.
4. Provide the necessary equipment, a computer (or several) with the necessary characteristics and appropriate software. A specialized program for direct participation in transactions on the Belarusian Exchange with a trading platform is provided for free.
5. Provide for consideration documents required for accreditation, after approval of which an exchange service agreement is signed between the exchange and the applicant organization. It defines all financial, legal, technical and procedural relationships between the parties.
6. Carefully study the structure and contents of the personal section (virtual office of the trader) and instructions for work.
7. Get familiar with the structure of the exchange website and the information on it, so that during the bidding process you can quickly find the required one.

Now you can begin the process of developing your business, that is, buying and selling goods in the area of \u200b\u200binterest.

Belarusian Universal Commodity Exchange OJSC (BUTB) was established in accordance with the Decree of the Council of Ministers of the Republic of Belarus dated December 30, 2003 No. 1719 “On the Belarusian Universal Commodity Exchange”.
   The first tenders (export of forest products) took place on June 2, 2005. Regular trade in metal products began from the same month. Since January 2006, tenders for the agricultural products section have begun.

The main founder of the exchange is the Republic of Belarus (shares transferred to the Ministry of Trade of the Republic of Belarus) The supreme governing body of the exchange is the General Meeting of Shareholders. The management of the exchange between the meetings of shareholders is carried out by the Supervisory Board, headed by the Minister of Trade of the Republic of Belarus V.S. Chekanov Executive body - board. The chairman of the board is Salikov Arkady Semenovich.

EXCHANGE OBJECTIVES

• transition of the republic to an organized wholesale market for goods
• development of the country's wholesale market and increasing the efficiency of trade
• improving the mechanism of state regulation in the field of domestic and foreign wholesale trade, increasing economic stability and security of the republic, increasing its economic potential

BASIC OBJECTIVES OF THE COMMODITY EXCHANGE

• promoting the development of an organized goods market
• increasing the efficiency of export of goods of Belarusian manufacturers and the sustainability of their material and raw materials
• simplification of the process of searching for sellers and buyers of goods
• creation of a trading mechanism with the most transparent system for concluding exchange transactions in accordance with established rules
• providing bidders with a range of logistics services for moving purchased goods to consumers

BASIC FUNCTIONS OF THE COMMODITY EXCHANGE

• creation of conditions for exchange trading
• exchange trading
• registration of exchange transactions
• organization of the examination of the quality of exchange goods in cases provided for by the rules of exchange trade in a commodity exchange
• identification of demand and supply of goods
• price quote
• the study of factors affecting the dynamics of stock prices.

ELECTRONIC TRADING SYSTEM

The technical basis for conducting electronic exchange trading on the Belarusian Universal Commodity Exchange is a unique Automated Trading Support System (ASOT).
  ASOT is designed for the comprehensive automation of all necessary operations on the trading floors of the commodity exchange based on the use of modern information technologies.
ASOT is a hardware-software complex that provides all the basic procedures of exchange technology: input, storage, processing of trade information, conclusion of exchange transactions, calculation of exchange quotations, etc.
  ASOT provides specialized exchange trading of agricultural products, forest products, metal products, as well as electronic trading of industrial and consumer goods of any assortment.
  The main objective of ASOT as an exchange instrument is to increase the intensity (productivity) of exchange trading, i.e. in providing exchange trading participants with the opportunity to make more exchange transactions in a shorter period of time. This problem is solved in ASOT using the mechanisms of parallel holding of many similar exchange auctions, in each of which bidders can participate simultaneously.
  The electronic “heart” of ASOT is the Data Processing Center (DPC), designed to ensure the stable operation of software applications that automate the basic technological processes of exchange activity with operational characteristics sufficient for the effective implementation of these processes.

EXCHANGE LOGISTICS

In 2011, the Belarusian Universal Commodity Exchange began to provide bidders and potential customers with a new service - exchange logistics.
  It was created in partnership with the legal entities that have received the status of “Exchange Carrier”, “Exchange Warehouse” or “Exchange Expert”. The Exchange assigned the organization and execution of logistics services to LLC “Exchange Logistics Broker” (www.broks.by), created for this purpose.
  At the first stage of development, exchange logistics provided customers with services for moving goods already purchased from the seller’s warehouse to the consumer.
  However, after registering stock warehouses abroad, its capabilities expanded significantly. First of all, the seller directly on the trading floor got the opportunity to formulate offers with the price of delivery of goods to the address of stock exchanges outside the Republic of Belarus. This has greatly expanded the geography of exported goods. In this case, the buyer already in the bidding process sees the cost of the goods in the country of destination and gets rid of the worries of transporting the goods and the risks associated with it.
The exchange offers Belarusian producers to sell their goods at no additional advertising costs in Russia (Moscow, Novosibirsk), Kazakhstan (Almaty), Estonia (Muaga port), Latvia (Riga and Liepaja ports), Lithuania (Klaipeda port), Germany (g Frankfurt an der Oder), Poland (station Lososno), Bulgaria (the city of Plovdiv), Belgium (the city of Gistel). At the same time, stock exchanges as organizations interested in obtaining a client for further services in storage of goods, their registration, packaging, labeling and other operations, are ready to advertise the goods offered, organize their post-sale service and provide internal logistics. As a matter of fact, today it is 16 representatives of exchange goods and technologies abroad.
  They provide an opportunity not only to increase the export of Belarusian goods, but also to sell goods between other states on the trading floors of the Belarusian Universal Commodity Exchange.