In accordance with Act No. 229/1992 Coll., On Commodity Exchanges, as amended, those parties who are interested in trading on the Commodity Exchange will utilise the services of an agent for trading, who, in exchange terminology, is denoted as a Broker.
The Broker represents a member company of the Czech Moravian Commodity Exchange Kladno (the CMKB) that has been authorised by the Exchange Chamber to represent other participants who are trading on the Commodity Exchange and to mediate the concluding of deals.
Therefore, those who are interested in trading on the Commodity Exchange will first select a Broker and conclude a contract for the brokerage of commodity exchange trades.
Dr. Vrbenského 2040, 272 01 Kladno
Ing. Petr Havelka, Chief Broker
tel.: +420 312 292 870; mobile: +420 602 104 054; e-mail: email@example.com, www.fsk.cz
Ringhofferova 115/1, 155 21 Prague 5 – Zličín
Ing. Miloslav Ryšavý, Chief Broker
mobile: 721 834 818; e-mail: firstname.lastname@example.org, www.prospeksa.cz
MM TRADER CZ, a.s.
Arbesova 492, 272 01 Kladno
Miroslav Sochor, Chief Broker
tel.: +420 312 276 067; mobile: +420 602 127 335; e-mail: email@example.com, www.mmtrader.cz
The second step prior to initiating trading is the registration of the trading participant at the CMKB Registration Centre. From that time onwards s/he will be represented by the Broker with whom s/he concluded a contract for the brokerage.
The registration conditions are streamlined to comprise just the following steps:
By completing this registration the applicant becomes an entity that is authorised to trade (hereinafter referred to as the trading participant or the participant).
The trading participant will forward the purchase order to his/her Broker in the manner agreed.
The Brokerage Company, represented by its Brokers, send this order, as an Auction Application, to the Exchange Registration Centre. The Exchange Registration Centre includes this registered auction in its Schedule of auctions on the secondary market in argarian commodities in the relevant trading session. The sequence of the auctions (described as the “listing”) will then be published, not later than two days prior to the date of the trading session.
Brokers also represent the trading participants when the actual electronic auction is taking place. If, during the course of the electronic auction, supply and demand match (based on the last valid price proposal), the Registration Centre records that the transaction has been concluded.
The trading participant informs the Broker in the agreed manner regarding his/her intention to participate in the trading. The Brokerage Company, represented by its Brokers, signs on behalf of its client to trade on the specific trading day. Additionally the Brokers also represent the client at the actual auction. If, during its course, supply and demand match (based on the last valid price proposal), the CMKB Registration Centre records that the transaction has been concluded.
If a deal is concluded the Exchange issues a note that has the legal validity of a business contract and the Brokers, together with the Exchange, confirm it.
The Brokerage Company, represented by one of its Brokers, shall notify the participant that it represents, in regard to the successful conclusion of the transaction and subsequently sends him/her a closing note confirmed by the Exchange.
The Broker shall also notify the participant in the event of the failure to conclude the transaction.