22.07.2013, 16:42 32485

Food Contract Corporation sells grain in the order-driven anonymous auction regime

All participants of the auction are anonymous at that - until the actual concluding of the deal no one can know its counteragent.

Almaty. July 22. Kazakhstan Today - The National Company Food Contract Corporation JSC (Food Contract Corporation) proceeded to participation in the grain trades in the "Order-Driven Anonymous Auction regime" (ODAA), held by the Eurasian Trade System (ETS) commodity exchange, according to the press service of the Food Contract Corporation.

As the Prime Minister's official website reported, the difference of the ODAA from the ordinary anonymous auction is that participants have the opportunity to trade from the long side as well as go short during the trading session (trading day). Large number of buyers and sellers may participate in the auction simultaneously, each of them having the right to make bids to buy and sell more than once. All participants of the auction are anonymous at that - until the actual concluding of the deal no one can know its counteragent.

The ODAA is the next stage of development of the mechanisms of the exchange trade, already used by almost all the large grain stock markets of the world (Chicago Mercantile Exchange, International Futures Market of France - MATIF, London Commodity Exchange etc.) and is aimed to ensure the market with a transparent and independent indicator of the market price based on the balance of supply and demand.

In the nearest future participants of the Kazakhstani exchange trade shall be obliged to bid a minimum of 15% of the total own exchange turnover of goods in the ODAA regime. This requirement is set by the Decree of the Government of the Republic of Kazakhstan, which comes into effect in the near future.

Taking account of this, as well as the recommendations of the ETS Exchange committee on grain, Food Contract Corporation made the decision to participate in the trades in the ODAA regime within its strategy of developing the exchange market of grain and pending forthcoming amendments to the legislation.

We would like to remind that to ensure the maximum transparency of the procedures of sales of grain, equal access of the potential buyers and to develop the exchange trade, starting from October 2012 Food Contract Corporation began and continues open sales of wheat at the exchange by means of anonymous exchange auctions.

In December 2012 at the initiative of the Food Contract Corporation at the ETS exchange the Committee on grain was established. It is aimed at assisting in the formation of necessary conditions for the further development of the grain market in the republic, based on the experience of the actual exchange trades, including introducing new perspective exchange tools, one of which is ODAA.

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