The sellers of cotton fiber on UZEX are 13 regional companies of "Khlopkoprom". All mutual payments under transactions are made through the exchange's Clearing Chamber in accordance with UZEX trading rules.
Cotton realization through the exchange supposes the following mechanism:
1. To participate in trades you should make a contract and deposit the amount at the rate of 2% of the prospective volume of the transaction on the individual account at Clearing Chamber. These funds are the guarantee for fulfillment of the transaction.
2. According to the results of the exchange trades both party receive a contract registered on the exchange and which is required to be registered at the authorized organs of the Republic of Uzbekistan.
3. The buyer is to carry out preliminary shipping inspection and make a deposit completely covered the amount of the transaction within 15 banking days.
4. The received funds of the buyer is blocked on the special accounts at Clearing Chamber and released only in case of performance of contract or returned to the buyer in case of non-fulfillment of the contractual obligations through the seller's fault. Clearing Chamber gives the seller shipment instruction and documentation package in accordance with established procedure under the terms of the contract (time and conditions of delivery) after receiving funds.
5. Upon receiving documentation package that confirms delivery of goods, Clearing Chamber enters 97% of funds in the settlement account of the seller and withholds 3% for probable reclamation concerning spoilage inside a bale.
6. In case one of the parties has not fulfilled the contractual obligations, the exchange imposes a penalty at the rate of 2% in favour of the injured party.
7. After passing property rights to goods, the owner of goods has the right of free putting them at the repeated exchange trades.
Котировка на 20.01.2010: $1556,62* (77,625)
* Cotton fibre grade 1 type 5 class Urta (basic active)
