BELARUSIAN UNIVERSAL COMMODITY EXCHANGE

Belarusian Universal Commodity Exchange (BUCE) is the only commodity exchange in the Republic of Belarus and one of the largest spot exchanges in Eastern Europe, which is primarily focused on the spot market (all transactions are closing which actual delivery of commodities to their buyers).

All trading sessions are held by electronic means via Internet, which enables a sustainable growth of exchange turnover, a steady inflow of clients and gradual expansion of the client geography.

At the present moment client base of BUCE counts more than 29 000 companies – participants from 70 countries, which annually conclude transactions of more than 4 billion EURO.

BUCE trading commodities
1.    Metal products. Ferrous metals (over 400 thousand tons a year, 20% of the entire national market), non-ferrous metals (about 20 thousand tons), coal (about 40 thousand tons), coke (in excess of 20 thousand tons), electrical products.
2.    Agricultural products. Casein, milk powder, butter, cheese, cottage cheese, butter and canola rapeseed, flour, cereals, hides of cattle, cattle meat and pork, sugar, and salt.
3.    Timber. Round wood, pulp wood, sawn wood, plywood, chipboard, fiberboard, paper, pellets, fuel briquettes and chips.
4.    Industrial and consumer goods. The electronic subsystem of auctions with industrial and consumer goods works on-line around the clock and allows to sell and buy goods of the widest range from anywhere in the world where there is the Internet, both with the help of a special purpose software or an interface of an Internet browser. A distinctive feature of this trading subsystem is a possibility to place additional textual and graphical information about the product in the application.
5.    Oil products and petrochemicals. All range of oil products and petrochemicals from Belarusian enterprises is available at BUCE platform.
The list of commodities eligible for trading at the exchange encompasses some
3000 commodity items.  

BUCE operation principles
Currently, exchange and electronic auctions are conducted electronically through specially designed trading subsystems, including the use of the remote access of traders to the BUCE trading system via the Internet.

The right to trade at BUCE belongs to legal entities, who are residents and non-residents of the Republic of Belarus.

Trading is anonymous. In the case of a transaction, parties get contact information of each other, enter into and register at BUCE within the prescribed by the rules period the contract for the supply of goods on conditions of a transaction concluded at the auctions. In the case where one of the parties refuses to conclude a transaction, it incurs sanctions established by BUCE rules.

Parties shall pay the exchange fee upon the conclusion of a transaction equal to
0.1-0.5% of the amount of the transaction, depending on the trading platform.

Companies are entitled to trade on their own as participants of exchange trades (after their accreditation) or use the services of authorized brokers.

BUCE auctions with metal, timber, agricultural products
Exchange auctions in the sections of metal, timber, agricultural products are carried out in strict accordance with the Rules of the exchange trade and Regulations of exchange auctions in the relevant section according to the scheduled auctions with goods included in the List of goods admitted to the exchange trade.

To be able to participate in the auctions via the remote access one must install special software that is downloaded free of charge from the website by accredited participants of the exchange auctions.

Section of industrial and consumer goods
Along with organization of traditional electronic exchange auctions in the sections (product groups) of metal, timber and agricultural products there is a section of industrial and consumer goods.

Electronic subsystem of auctions with industrial and consumer goods works on-line around the clock and allows to sell and buy goods of the widest range from anywhere in the world where there is the Internet, both with the help of a special purpose software or an interface of an Internet browser.

A distinctive feature of this trading subsystem is a possibility to place additional textual and graphical information about the product in the application.

A new version of the system of auctions with industrial and consumer goods is to be put into operation, where there is construction of supply and demand registers with the help of a global classification of products (GPC) with a synchronized Belarusian classification of industrial and consumer goods (ОКРБ 007-2007) and a classification of the commodity nomenclature of foreign economic activity of the Customs Union.

Electronic auctions for public procurement
Belarusian legislation provides for mandatory use of electronic auctions for public procurement, as well as purchases at their own expense by state enterprises of the predominant majority of goods (works, services). One of the operators of electronic trading platforms that have the right to conduct electronic auctions in the Republic of Belarus is BUCE.

Exchange brokers
Exchange brokers perform for their clients all necessary steps and procedures for participation in exchange trading, and the conclusion of transactions. Exchange broker may conduct transactions:

on behalf of clients at their expense,
on their own behalf at the expense of clients,
on behalf of clients at his own expense.

Relationships between exchange brokers and BUCE are regulated with the exchange service contract. Relationships between exchange brokers and their clients are regulated with other contracts (contract of agency and etc.).

Analytics
For the purpose of effective monitoring and objective analysis of the situation on the exchange markets of the Republic of Belarus and abroad, the BUCE markets a number of information and analytical products that, due to the high concentration of supply and demand, reflect the market condition and provide guidance to market participants when they conclude transactions.

Branch offices and agencies abroad
BUCE has established its branch offices in all 6 districts of the Republic of Belarus.
Foreign brokers of BUCE also work in Lithuania, Latvia, Ukraine, Poland, Kazakhstan, Russia, Turkey, Hungary, Israel, China and Germany.

Contact person for cooperation: Alexander Bashliy, Head for Foreign Relations: tel.: +375 17 309 32 88, mob.: +175 29 111 87 16, email: a.bashliy@butb.by.