|
There are several benefits to be derived from trading through a commodity exchange such as ZAMACE: - Reducing risks for both buyer and seller through our mechanisms which gurantee settlement (delivery and payment)
- All the deals are transparent, which is certainly not the case in other markets. Prices are published ensuring that both producers and consumers are getting the best price available at the time. Market information, not previously available, will also be accessible to all parties.
- The Regulations of ZAMACE govern the manner in which deals are transacted across the Exchange floor. Through this mechanism, the integrity of the member companies and the conduct of their brokers is monitored.
- In the event of a dispute arising and where the disputing parties are unable to resolve the issue amongst themselves, the ZAMACE Rules of Arbitration.
- Arbitration is governed by the Arbitration Act
- An Arbitrator after hearing both parties will issue a binding award.
- The benefit of this arbitration facility is enormous in saving both time and the costs involved of taking legal action through the courts. This will contribute to improved communication between parties involved.
- The Exchange ensures the maintenance of standards of quality, not only of the commodities themselves, but also of trading practices through its Regulations.
- An exchange such as ZAMACE provides a very cost effective marketing system, with the transaction costs involved being as transparent to both the buyer and seller as any other details, such as price of the commodity for example.
- ZAMACE Contracts, which must be signed by both parties and which are legally binding and are required to be lodged at ZAMACE in respect of each deal conducted, give much needed security, certainty and transparency to the parties involved in the transaction. These contracts cover the following things, amongst others:
- Quantity
- Quality
- Passing of ownership and risk
- Price
- Payment terms
- Inspection
- Transport
- Delivery and weights
- Packaging and packaging definitions
- Force majeure
- Analysis
- Demurrage
- Interest
- Arbitration
| | The Exchange will also benefit other sectors of the economy: - Stimulate the establishment of a warehouse/silo industry
- The opportunity for transport to be traded
- The opportunity for storage to be traded
- The opportunity for the seed industry to participate
- Financial sector can develop products that support the financial sector
- Increased production will lead to employment creation
- Increased production will stimulate an agro-processing industry
|
|
