Brief Trading Guide

Trading on the Czech Moravian Commodity Exchange Kladno

(hereinafter the CMKB or Exchange)

According to the CMKB Statute, persons are authorised to trade on the CMKB, who are members of the Exchange or persons, who are authorised to produce or manufacture goods, which are a subject of exchange trades, or to trade with these goods.

With regards to an exchange member, it is possible to conclude exchange trades directly, i.e. only by means of his assignee (broker), who is a natural person, a member of the exchange authorised to conclude trades in his name.

If you are concluding trades as a non-member of the exchange, hence as a person authorised to exchange trading, these trades must be concluded using one of the brokers, with whom you will conclude the respective proxy agreement..

Trade on the exchange is subject to exchange rules. Prior to launching trade on the exchange, the interested person – the member directly and the interested person – the non-member of the exchange by means of their contractual broker, submits documents to the Registration Centre of the CMKB (hereinafter the RC), which are required for the respective exchange section.

The RC of the exchange shall perform an evaluation of the submitted documents and it is authorised to verify the authenticity and truthfulness of the documents. Based on the evaluation of the submitted documents, the exchange RC registers the interested person as a registered authorised subject of trading. RC exchange registration can only be performed once.

Once registration has been performed, the exchange RC issues the authorised subject of trading, a confirmation on his registration, on allocation of a registration number, on data concerning the closest upcoming exchange meeting, which the person authorised in trading may attend.

Prior to the event of the exchange meeting the authorised subject of trade is obligated to pay out an admission fee to all ensuing exchange meetings.

The contracting broker ensures the process of registration in the exchange RC, represents his client in trade in accordance with his client´s orders and also provides the respective information server.

Trading on the exchange is periodical, trading takes place exclusively at exchange meetings. The dates of exchange meetings on individual commodities are published on the CMKB website and website of individual brokers. Trading with general commodities takes in electronic or presence exchange floor.

Once the exchange trade is closed, the exchange creates a contract note, which among others contains data on the contracting parties of the exchange trade, description of the commodity, payment conditions and confirmation from the exchange. The contract note substitutes the purchase contract of contracting parties.

Settlement of the exchange trade is deemed as the physical delivery from the side of the supplier against the financial performance of the purchaser, in accordance with the conditions stated in the contract note.

All disputes of concluded exchange trades will be decided with final force at the International Arbitration Court of the Czech Commodity Exchange.

Exchange fees are paid from concluded trades in accordance with the Fee regulations of the Exchange.