When names are used in Belarus: "Commodity Exchange","Universal Exchange" or "BUTB", know that we can only talk about one organization. It's Open joint stock company"Belarusian Universal Commodity Exchange" or JSC "BUTB". There are only two enterprises in the Republic that have exchange status: BUSE OJSC and the Belarusian Currency and Stock Exchange (BVSE OJSC). But the object of the latter’s work is only finance. Exchange trading in goods, raw materials and other material resources takes place exclusively on the platform of BUCE OJSC.
For those who have access to the Belarusian Commodity Exchange professional interest, will require some special knowledge, they should definitely study the current legislation of the Republic of Belarus, enter into agreements with the Exchange or with one of its regular participants. Primary information on this matter can be obtained on the official website of BUTB - http://www.butb.by/ and from the exchange employees live
Here we will try to give general knowledge about the Commodity Exchange, outline the range of its operations, so that the unprepared reader can determine his vision of this organization.
By whom, when and why was the Belarusian Universal Commodity Exchange created?
OJSC BUTB was founded in accordance with Resolution of the Council of Ministers of the Republic of Belarus No. 1719 dated December 30, 2003. The republican press mentioned that the prototype for the creation of a Commodity Exchange in Belarus was the State Commodity and Raw Materials Exchange of Turkmenistan. It can be assumed that the sample selection was not random.
First of all, let's remember Belarusian Universal Commodity Exchange is state project , and not the result of private initiatives to regulate already established commercial relations. The founders of the Exchange were only government organizations, personal leadership is also in the hands of civil servants. The first goal of BUCE was the creation of an organized market in the Republic of Belarus. Other goals included increasing efficiency wholesale trade; strengthening the stability of the economic system and, again, optimizing state control mechanisms in the field of wholesale trade.
There is, without a doubt, sufficient justification for this approach. A significant part of wholesale transactions with raw materials and finished products occurs between state and commercial enterprises. Avoid violations in such a situation, especially pricing policy, very difficult. And controlled exchange trading helps determine a more or less equilibrium price, informs about its changes, and makes the market “more transparent.” Without the Exchange, there is a possibility that some interested parties will not receive sufficient information about potential buyers and sellers, products and prices. From this we can conclude that exchange trading provides not only a control, but also a direct economic effect.
How is the Belarusian Universal Commodity Exchange organized?
BUTB OJSC, like any other organization, has a legal address: Republic of Belarus 220099 Minsk, st. Kazintsa, 2, room 200.
The Exchange has an official website:http://butb.by , it is more convenient to obtain most of the current information about the work of BUTB from the website. His home page looks like this:
OJSC "BUTB" also has branches in all regional centers, in Russian Federation and the Republic of Latvia.
For any questions, please contact the Exchange representative offices. But before you do this, you should understand that Belarusian Universal Commodity Exchange is an electronic exchange. All actions, including trading, are carried out using computers on an electronic trading platform. Even operations carried out at the Exchange's central office in Minsk are completely computerized. Myself trading floor looks like this:
It follows from this that physical presence is not necessary to work at the Belarusian Universal Commodity Exchange. Remote access is sufficient, which is exactly what most bidders do.
Main activities of the Belarusian Universal Commodity Exchange
There are a number of instructions in the legislation regarding which transactions, with which goods and, starting with what volume, must be carried out through trading at BUCE. Large production and trading enterprises They are aware of this; these restrictions usually do not apply to small ones, but you can check the list of regulated transactions on the BUCE website.
In addition to large wholesale transactions, it is necessary to carry out some purchases for government needs through the Exchange. Sale of state property, in established by law cases, is also carried out through the Exchange.
The Belarusian Universal Commodity Exchange itself provides the following information about the main types of transactions carried out:
- Trade in metal and metal products. Here we are talking about ferrous and non-ferrous metals as raw materials for further processing, scrap or products. This category also includes coal and coke, and electrical products.
- Trade in timber and timber products. The range is very wide, from standing timber and services for its procurement, to cardboard and paper.
- Product trade agriculture. More than half of the list of items consists of raw materials for further processing: meal, cake, feed and vitamin additives, as well as milk powder and whey. Flour, cereals, cheeses, cottage cheese and meat are also included, but there is special control over export sales.
- Sales of industrial products, including finished consumer goods, are also carried out on the Exchange. The list of items allowed for trading includes rubber, textiles, and musical instruments. The list of products is very wide, but there are no such strict requirements for mandatory sales through the exchange, as there were in previous categories.
- Electronic auctions. In this way, purchases are made for government needs and for other organizations at their own expense. Government procurement is quite clearly regulated by law; other enterprises make independent decisions.
- Market research and publishing activities. They are not working in these directions. third parties, but the BUTB employees themselves. They collect and analyze information about stock exchange transactions. Based on them, some indicators are derived: stock indices, activity ratings, reviews, etc. Some results are published on the official website of BUCE OJSC as current information, some - in periodicals of the Exchange. Customized ones are available for an additional fee. information services. You can find out more about this from the employees of BUTB OJSC.
General information about the results of exchange transactions can be published on the official website in the following form:
How to start working on the Belarusian Universal Commodity Exchange
All those who have relations with BUTB OJSC first go through several general stages of preparation. Beginners can be advised to do the following:
- Clarify whether their activities include commercial transactions that must be carried out on the Exchange. This point must be justified by legislative acts.
- Find out which transactions that do not require exchange registration will be more profitable to conduct through BUCE. To do this, you will have to study the list of transactions carried out on the Exchange.
- Get some introductory information about the operation of the Exchange. Here it is useful to study the information from its website, especially the list of trades and goods, the given acts of laws and regulations. It would be appropriate to start with a glossary of terms.
- If the decision to cooperate with BUCE OJSC has been made, determine the format of participation. Namely: is it worth turning to an intermediary, i.e. broker, or act on your own.
- If you decide to limit yourself to the services of a broker, it will be enough to conclude an appropriate agreement with him, pay for the services and use the results without worrying about liability for violating exchange rules.
- If you plan to work with the Exchange on your own, then:
- It is necessary to study the rules of the Exchange and the penalties for violating them.
- Conclude a direct agreement with the Exchange.
- Receive an electronic digital signature (EDS).
- Install software on computers.
- Select and prepare personnel to work at the Exchange. OJSC BUTB offers free training services for future traders.
In practice, most enterprises train their stock trading specialists in 1-2 days without outside help. Usually, already trained employees teach newcomers. With this approach, they receive a limited set of specific knowledge about the required operations.
OJSC "Belarusian Universal Commodity Exchange" (BUCE) is one of the largest organizations in the Republic of Belarus, the main function of which is to assist Belarusian enterprises in selling their products for export and providing assistance to foreign companies in entering the Belarusian market.
Currently, BUCE is a unique electronic trading platform in the Republic of Belarus and one of the largest commodity exchanges in Eastern Europe, is a member of the International Association of Exchanges of the Commonwealth of Independent States and the Association of Futures Markets.
BUCE sees the main goal of its activities in increasing the efficiency of trade turnover between Belarusian and foreign companies, establishing friendly and partnership relations between countries and creating a favorable image of the country.
Over the past 8 years, BUCE has accumulated extensive experience in organizing wholesale trade in the market of the Republic of Belarus, significant work has been carried out to introduce advanced computer technologies for carrying out electronic trading, qualified personnel work.
BUCE regularly conducts tenders in the following areas:
Metal products:
- ferrous metals (domestic market, import)
- scrap and waste of ferrous metals (export)
- non-ferrous metals (domestic market, import)
- scrap and waste of non-ferrous metals (export)
- cable and wire products (domestic market, import)
- coke (domestic market, import)
- coal (domestic market, import)
- ·products of RUE "Belarusian Metallurgical Plant" (export)
Forest products:
- round timber (domestic market, export, import)
- lumber (domestic market, export)
- wood panels (export, import)
- plywood (export)
- paper, cardboard (export, import)
- fuel briquettes (export)
- ·resin, rosin (export)
Agricultural products:
- ·milk powder (export)
- technical casein (export)
- · cow butter (export)
- whey (export)
- cottage cheese (export)
- canned milk (export)
- cheeses (export)
- sunflower and soybean meal (import)
- rapeseed oil and rapeseeds (export)
- leather raw materials (export)
- cotton fiber (import)
- ·rye flour (export)
- ·meat (export)
Industrial and consumer products
Electronic exchange trading in industrial and consumer goods is conducted in Russian and English languages daily around the clock via the Internet and provide the opportunity to purchase and sell the entire range of industrial and consumer goods.
Exchange trading takes place simultaneously on trading floors in Minsk and all regional centers of the Republic of Belarus (Brest, Vitebsk, Gomel, Grodno, Mogilev). In June 2010, a representative office of BUTB was opened in Moscow.
Most convenient form participation for foreign companies is exchange trading via the Internet. By installing the appropriate software on a personal computer, BUCE's foreign clients have the opportunity to participate in exchange trading from anywhere in the world, which saves time, money and effort.
The effectiveness of exchange trading is confirmed by the fact that a significant number of foreign companies participate in trading. As of December 31, 2013, 12,975 companies were registered with BUCE, including 2,774 non-residents from 56 countries.
Advantages of trading with Belarus through the exchange:
) Free pricing. The exchange allows you to set real market prices for goods, formed on the basis of supply and demand during exchange trading, depending on market conditions.
)Large assortment of exchange goods. More than 3,000 items of goods are put up for exchange trading.
)Creating a competitive environment for buyers and sellers. More than 12,900 companies from the Republic of Belarus and 56 countries of the world take part in exchange trading.
)Simplification of the procedure for searching for potential suppliers and consumers of goods. Exchange trading allows you to avoid the cost of searching for counterparties, since potential buyers (sellers) are present in significant numbers on one trading platform.
) Favorable accreditation conditions. Companies accredited on the exchange bear the costs only of paying the exchange fee depending on the amount of transactions made (accreditation, job training, access to BUCE information resources and use software are free).
) Conclusion and design large quantity transactions in a short period of time. In just a few minutes during exchange trading, you can agree on the terms of exchange transactions with one or more counterparties, as well as draw up all the documents necessary for concluding contracts.
)Calculations and ensuring the fulfillment of obligations. As a means of ensuring the fulfillment of obligations under exchange contracts, instruments such as
bank or exchange guarantee;
insurance certificate;
cash deposited into the exchange account in an amount sufficient to pay for the cost of exchange goods for a specific exchange transaction.
)Exchange arbitrage. All disputes and disagreements that arise in the course of fulfilling obligations under concluded agreements are resolved by the Exchange Arbitration Commission, eliminating the need to go to court.
)Expertise. To ensure unconditional compliance with the requirements for product quality, the exchange has entered into cooperation agreements with independent expert organizations, allowing our clients to use their services and obtain the necessary conclusions using the appropriate methods.
)Transport and forwarding services. To ensure high quality transportation when moving goods purchased at exchange trading, the exchange has entered into agreements with leading Belarusian cargo transportation operators.
) Consultations with specialists. If you have any questions, you can personally (by phone, Internet) consult with exchange specialists (lawyers, brokers, trading department employees).
)Quotation of prices for commodities. Due to the high concentration of supply and demand, stock quotes objectively reflect the state of the market and serve as a guide for market participants when concluding transactions.
Dear Sirs!
The Belarusian Universal Commodity Exchange acts in the Republic of Belarus as the core of the organized commodity market. In modern market conditions, the exchange mechanism has an advantage over other forms of trade and is the most effective due to the high concentration of supply, equal availability of goods for all market participants, openness of trading operations and their publicity. In conditions of free competition in exchange trading, based on real supply and demand, a fair price for goods is achieved.
BUCE held its first trading on June 2, 2005. By that time, only 15 organizations were accredited on the exchange. Currently, our client base is over 19,000 members, with more than 3,900 of them represented by companies from 59 countries.
Since 2008, the exchange has been a member of the International Association of Exchanges of the CIS Countries (IAB CIS). On our initiative, in October 2010, a Committee for commodity markets, whose work is aimed at creating favorable conditions for international trade using modern exchange technologies, including under conditions of an increased degree of guarantee of the execution of concluded foreign trade contracts.
In 2011, BUCE became a full member of the world’s leading Association of Futures Markets (AFM), participation in which contributes to the dissemination of business information about the exchange in the international exchange community, and also opens up new horizons for the intensification of exchange trading, strengthens international cooperation ties, and expands the opportunities of Belarusian enterprises to search for potential trading partners abroad and enter new export markets, promote the image of not only the exchange, but also Belarus as a whole among foreign companies involved in exchange trading.
Branches of the Belarusian Universal Commodity Exchange operate in all regional centers of the republic, and in 2010 in Moscow, on the premises of the All-Russian Exhibition Center, a Representative Office of the exchange in the Russian Federation was opened, the main task of which is to expand business ties and search for development partners various directions activities of the exchange in Russia and regions cooperating with the exchange. Based on the positive experience of the Representative Office, we are working on creating similar structures in other countries. For example, our representatives are already working in Latvia, South Africa, and Bulgaria. Companies in Germany also express a desire to perform this function.
Thus, in a fairly short time, the Belarusian Universal Commodity Exchange has become not just a well-known, but a reputable company with which business representatives seek to cooperate, since objectively it is one of the leading electronic trading platforms in Europe. Achieving this status is facilitated by the constant improvement of legal and software and hardware support for exchange trading, a wide range of services offered by the exchange, in particular, exchange logistics, an electronic trading platform for purchasing at electronic auctions, information services, the constant expansion of the list of exchange goods, the introduction of new tools.
In the near future, on the basis of the Belarusian Universal Commodity Exchange, it is planned to create a holding company, which will include the exchange itself, a settlement and clearing center, branches, representative offices, information technology and, in general, the entire exchange infrastructure. The creation of such a holding will further secure the exchange’s status as one of the most important economic institutions of the Republic of Belarus and will help increase the competitiveness of Belarusian participants in exchange trading on the global commodity market.
This is one of the largest organizations in the Republic of Belarus, the main function of which is to assist Belarusian enterprises in selling their products for export and providing assistance to foreign companies in entering the Belarusian market.
Currently, BUCE is a unique electronic trading platform in the Republic of Belarus and one of the largest commodity exchanges in Eastern Europe, and is a member of the International Association of Exchanges of the Commonwealth of Independent States and the Association of Futures Markets.
BUCE sees the main goal of its activities in increasing the efficiency of trade turnover between Belarusian and foreign companies, establishing friendly and partnership relations between countries and creating a favorable image of the country.
Over the past 8 years, BUCE has accumulated extensive experience in organizing wholesale trade on the market of the Republic of Belarus, significant work has been done to introduce advanced computer technologies for electronic trading, and it employs qualified personnel.
BUCE regularly conducts trading in the following areas:
1. metal products:
o ferrous metals (domestic market, import)
o scrap and waste of ferrous metals (export)
o non-ferrous metals (domestic market, import)
o scrap and waste of non-ferrous metals (export)
o cable and wire products (domestic market, import)
o coke (domestic market, import)
o coal (domestic market, import)
o products of RUE "Belarusian Metallurgical Plant" (export)
2. forest products:
o round timber (domestic market, export, import)
o lumber (domestic market, export)
o wood panels (export, import)
o plywood (export)
o paper, cardboard (export, import)
o fuel briquettes (export)
o fuel pellets (export)
o resin, rosin (export)
3. agricultural products:
o milk powder (export)
o technical casein (export)
o cow butter (export)
o whey (export)
o cottage cheese (export)
o canned milk (export)
o cheeses (export)
o sunflower and soybean meal (import)
o rapeseed oil and rapeseeds (export)
o leather raw materials (export)
o cotton fiber (import)
o rye flour (export)
o meat (export).
In accordance with the legislation of the Republic of Belarus, OJSC "Belarusian Universal Commodity Exchange" performs the functions of an operator of an electronic trading platform (ETP) for carrying out government procurement in electronic format ( electronic auctions and requests for price proposals), as well as for the procurement and sale of industrial and consumer goods.
According to the Resolution of the Council of Ministers of the Republic of Belarus dated March 15, 2012 No. 229 “On improving relations in the field of procurement of goods (works, services) through own funds» the possibility of using electronic auctions for procurement at the expense of organizations’ own funds is provided.
ADVANTAGES OF THE EXCHANGE ELECTRONIC TRADING PLATFORM
- intelligent functionality containing recommendations and automatic control functions;
- intuitive interface;
- free training work on the ETP, access to training materials for accredited users;
- provision of free consulting and technical assistance at all stages of the procurement;
- the opportunity to participate in large centralized procurements conducted by the organizers;
- work in various Internet browsers according to the procedures for requesting price proposals announced on the electronic trading platform of the exchange; currently no fee is charged to participants.
ADVANTAGES OF TRADE WITH BELARUS THROUGH THE EXCHANGE
Free pricing. The exchange allows you to set real market prices for goods, formed on the basis of supply and demand during exchange trading, depending on market conditions;
A large assortment of exchange goods. More than 3,000 types of goods are put up for exchange trading;
Creating a competitive environment for buyers and sellers. More than 12,900 companies from the Republic of Belarus and 56 countries of the world take part in exchange trading;
Simplification of the procedure for searching for potential suppliers and consumers of goods. Exchange trading allows you to avoid the cost of searching for counterparties, since potential buyers (sellers) are present in significant numbers on one trading platform;
Favorable accreditation conditions. Companies accredited on the exchange bear the costs only of paying the exchange fee depending on the amount of transactions made (accreditation, job training, access to BUCE information resources and use of software are free);
Concluding and processing a large number of transactions in a short period of time. In just a few minutes during exchange trading, you can agree on the terms of exchange transactions with one or more counterparties, as well as draw up all the documents necessary for concluding contracts;
Calculations and enforcement of obligations. As a means of ensuring the fulfillment of obligations under exchange contracts, instruments such as a deposit, a guarantee from a bank or exchange, an insurance certificate, funds deposited into the exchange account in an amount sufficient to pay the cost of exchange goods for a specific exchange transaction are used;
Exchange arbitrage. All disputes and disagreements that arise in the course of fulfilling obligations under concluded agreements are resolved by the Exchange Arbitration Commission, eliminating the need to go to court;
Expertise. To ensure unconditional compliance with the requirements for product quality, the exchange has entered into cooperation agreements with independent expert organizations, allowing our clients to resort to their services and obtain the necessary conclusions using the appropriate methods;
Transport and forwarding services. To ensure high quality of transportation when moving goods purchased at exchange trading, the exchange has entered into agreements with leading Belarusian cargo transportation operators;
Consultations with specialists. For all questions that arise, you can personally (by phone, Internet) consult with exchange specialists (lawyers, brokers, trading department employees);
Quotation of commodity prices. Due to the high concentration of supply and demand, stock quotes objectively reflect the state of the market and serve as a guide for market participants when concluding transactions.
MAIN RESULTS OF EXCHANGE TRADING IN 2015
The exchange turnover of OJSC Belarusian Universal Commodity Exchange in 2015 increased by 26%. In 2015, the volume of transactions concluded on the Belarusian Universal Commodity Exchange increased to Br20.2 trillion, which is 26% more than the same period last year. At the same time, the electronic trading platform for industrial and consumer goods demonstrated the highest growth rates. The site’s turnover increased by 69%, and the number of bidders reached 600. Positive dynamics was ensured thanks to the active placement of applications for sale by domestic exporters. As a result, the volume of export transactions increased 4 times, amounting to more than Br1 trillion.
Growth in value and volume indicators also occurred in other product sections. In particular, in the metal products section, exchange turnover in value terms exceeded Br8.4 trillion (plus 29%), in physical terms - 492 thousand tons (plus 6%). “The greatest demand among bidders was for ferrous and non-ferrous metals and products made from them, scrap and metal waste, and electrical products.
The forest products section ended the year with a turnover of Br7.3 trillion, which is 29% more than in 2014. Almost half of the section's turnover came from export transactions. Thus, in 2015, over 3.2 million cubic meters of round timber worth Br1.4 trillion and 848 thousand cubic meters of lumber worth Br1.7 trillion were sold to foreign consumers.
The agricultural products section also recorded an increase of 8% compared to 2014. The positive dynamics are due to an increase in supplies of milk powder to the Russian market, as well as increased demand from Belarusian agricultural enterprises for meal and feed additives.
One of priority areas BUCE's activity in 2016 will be trade in services. So far, only timber harvesting services are sold through the exchange. In 2015, 6.8 thousand transactions (4.4 million cubic meters) worth Br618 billion were concluded. However, taking into account the changes to the law “On Commodity Exchanges” that came into force last year, it is possible that exchange trading will soon be possible will sell or buy other types of services, including exchange logistics services.
WHAT IS NEEDED TO PARTICIPATE IN THE BIDDING?