The Indonesia Commodity and Derivatives Exchange (ICDX) put forward several new initiatives to boost participation by international tin buyers at the ITRI China Annual Tin Reception in Sanya. Chief Product and Services Officer Stella Lukman invited feedback on a proposed new Bulletin Board system allowing sellers to deal direct with individual customers outside the auction system and a low cost Small/Medium End-User membership scheme.
ICDX already allows one-to-one business through so-called Bonafide Trades, which are permissible based on the benchmark TINPB300 contract after certain volume conditions have been fulfilled and at a minimum $50 premium to the auction price on the day. The new Bulletin Board system will be linked to the TINPB200 contract, and ICDX proposes to issue daily listings of which of its 22 seller members are able to offer metal, based on the volume of tin they have traded through the auction system in the previous five days and having sufficient tin deposited in exchange warehouses.
The S/M End-User scheme is aimed at tin users purchasing less than 250 tonnes per year, who have to provide information on historical and planned purchases and other company information and are subject to on-site inspections. Those qualifying are exempt from the exchange’s normal $30,000 joining fee and have reduced membership fees. S/M End-Users can use the regular auction system, arrange one-to-one deals in TINPB200 through the Bulletin Boards and have a special system for buying TINPB300 from individual suppliers subject to a yearly maximum volume.
