The Trading Manual provides instructions on how to start trading on the fuel exchange market. It contains a list of brokers, i.e. member companies of the Czech Moravian Commodity Exchange Kladno, which provide trading participants with a comprehensive information service and represent them when closing fuel exchange trades.
The manual also informs how an applicant becomes a trading participant, how purchases and selling of commodities take place, and what happens after the trading is over.
Pursuant to Act 229/1992 Coll., on the Commodity Exchange, those interested in trading on the commodity exchange utilize the services of a mediator (referred to as a broker in exchange terminology) for trading.
A broker is a member company of the Czech Moravian Commodity Exchange Kladno (CMKB) that the commodity exchange permitted to represent other participants and mediate closing of trades when trading on the exchange.
Those interested in trading on the exchange will therefore first choose a broker and conclude with the broker a contract on intermediation 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 of trading is registration of the participant at the CMKB Registration Center. When registering, the participant is already represented by the broker with whom he or she entered into an intermediation contract.
The conditions for registration are simplified into the following acts:
The applicant will fill-in a Request to be entered into the Register of Trading Participants, and a Power of Attorney for representation when concluding exchange trades and submit them signed to the broker.
The applicant will submit other relevant documents if the Exchange Registration Center requests as such.
When registering, the broker will pay a one-time fee for registration and for a ticket on behalf of the applicant, and then re-invoice the costs to the applicant.
Upon registering, the applicant becomes an authorized subject of trading (trading participant).
The requester (client) will submit a purchase order to his or her broker in an agreed manner. The broker or one of its brokers will send the broker-authorized Trading Order to the Exchange’s electronic system. The Registration Center of the exchange will then assign the registered auction to the Agenda of the Auction and assign it a date. The exchange will then publish the Agenda of the Auction (so-called listing), at the earliest 25 business days and at the latest 5 business days (for monthly, multi-month, annual and multi-year contracts), or 1 business day (for daily contracts) before the date of the exchange meeting (business day).
Brokers represent the requester (client) during the course of the electronic demand auction. If the demand is matched with the offer during the course of the auction (the last valid price bid of the supplier), the Registration Center will close the trade.
The broker or one of its brokers will register its client (supplier) for trading in the relevant module of the electronic system of the exchange for the current exchange meeting (business day). If the demand is matched with the offer during the course of the auction (the last valid price bid), the CMKB Registration Center will close the trade.
If a trade is closed, the exchange will issue a closing sheet that has the legal power of a purchase agreement.
The broker will inform the participant that the broker is representing of the result of the trading, or about a successfully-concluded trade. After concluding a trade, the broker will send to the trading participant a closing sheet confirmed by the exchange.