Article 1: terms and words used in this guideline have following meanings:
1-EOTC (Energy over the counter): it is energy products trading market which has EOTC trading system.
2-best purchase order: it is the purchase order with highest price.
3-best sale order: it is sale order with lowest price.
4-demand: readiness for purchasing commodity or registering purchase order in transactions system.
5-trading official session: it is a definite time period in which trading of commodities done according to the regulations of this guideline.
6-minimum order price change (tick size): the least allowed price change for the orders registered in the trading system.
7-minimum purchase: it is the lowest possible quantity of each product that a customer can buy.
8-minimum supply: the least allowed supply amount in each trading symbol according to the transactions.
9-maximum purchase: it is the highest allowed purchase from each trading symbol by a customer based on the regulations.
10-auction: it is a mechanism for commodity exchange based on the conformity of purchase and sale orders of customers, and considering the priorities determined in this guideline.
11-Force majeure events: external, unavoidable and unpredictable events in which the obligator, including seller and buyer, cannot fulfill the commitments.
12-delivery tolerance: it is the weight or quantity difference of delivered commodity to traded commodity.
13-EOTC trading system: it is a computer system for the operations related to the trading, including entering and registering purchase and sale orders, conformity of orders and conducting trading.
14-order: it is purchase or sale order submitted by the customer.
15-supply: readiness for selling commodity according to this guideline.
16-contract: it is an agreement for buying and selling some defined amount of commodity between buyer and seller through trading in EOTC.
17-cash contract: a contract in which payment of the commodity price and its delivery is done according to this guideline.
18-credit contract: it is a contract in which the commodity delivered during trading and its price paid based on this guideline.
19-futures contract: it is a contract in which the commodity will be delivered in a definite tine in future and its cost will be paid during trading based on this guideline.
20-premium contract: it is a contract in which a difference is agreed by the parties and they oblige to trade the commodity in a determined time in future (delivery, carry or lading) based on the actual price. The buyer will pay a part of contract price to the seller and the remained amount will be settled based on the conditions determined in the contract.
21-basic price: it is a specific price which seller declares in his request to supply commodity.
22- Bid price: it is a price declared by the customer in the bid to enter into the trading system.
23-base price: it is a price determined at the time of carrying, transfer, delivery or loading the commodity subject of the premium contract by the competent authority.
24-ending price: in the premium contracts, it is the sum of premium and base price used for final settlement of the trading.
25-customer: a person who requests to buy or sell commodity in the EOTC.
26-notice of closing date of offer: the closing date for issuing supply notice.
27-settlement affairs: required acts to settle trading, including payment of contract price for cash settlement, providing g instruments in credit settlement, and credit trading, according to EOTC format, and payment of fees and deductions, based on the regulations.
28-termination: coerced dissolution of a contract such that the contract becomes ineffective.
29-settlement and clearing: it is a process in which all rights and obligations of trading parties were calculated and settled according to the arrangement in this guideline.
30-delivery tolerance: allowed difference between the delivered commodity and traded commodity.
31-commodity purchase order: it is a document issued for the buyer and buyer can take the commodity by submitting it to the seller.
32-delivery duration: a time period in which the contract commodity is delivered according to the schedule in the supply notice and deadlines in this guideline.
33-supply limit: maximum supply limit by each supplier which is determined based on his guarantees in EOTC.
34-guarantee fund: a fund established in EOTC for guaranteeing funds settlement obtained by trading.
35-account statement: a report of trading account statement of each customer communicated to him according to the terms and conditions of this guideline.
36-quality control unit: EOTC quality control unit which controls the quality of traded commodities.
Article 2: EOTC trading is always done based on the competition and with auction method. Processing orders will be done according to the price, and if prices were equal, the priority of entering purchase order in the trading system will be considered.
Article 3: types of tradable contracts in stock exchange are as follows:
Article 4: offer notice includes following cases:
1-offered commodity specification (commodity analysis)
2-offered commodity volume
3-type of contract (in futures contract, maturity of commodity delivery and in credit contract, payment conditions)
8-contract price payment condition; in non-cash settlement, non-cash potion, and required documents for settlement
9-commodity delivery scheduling
10-commidity delivery place
12-international target market
13-base price and details of ending price calculation in premium contracts.
15-minimum order price change (tick size)
18-added value tax
22-number of excess offer days
23-number of auction days in case of non-trading
Article 5-registration of commodity supply notice in EOTC system shall be done up to 16 hours.
1-ETOC, after authenticating the conditions of suppliers in terms of supply, guarantees and required deposits for supply, confirm or not-confirm offer by the customer.
Note 1: in the case of non-confirmation of offer notice, EOTC will inform the customer.
Article 6: all duties and obligations of contract parties are in line with the conditions of offer notice and regulations, and contract conditions cannot be modified after issuing offer notice.
Article 7: after issuing offer notice by EOTC, seller cannot avoid the delivery of commodity in the offer notice. If supplier does not offer the commodity, he is obliged to pay one in a thousand of offer value with basic price as the guarantee to buyers who had advance payment. This guarantee will be divided between buyers by EOTC according to their advance payments.
Article 8: steps for commodity trading are as follows:
1-regsitering sale order: seller shall register offer notice in the system until 16:00 P.M of each working day.
2-registering purchase order: since displaying commodity offer in EOTC system until displaying orders, it is possible to enter, change or delete the order by the customer.
3-displaying orders: the time for displaying orders declare in the released offer notice. In this step which lasts for 4 minutes, it is not possible to change or delete orders, or enter new order, and only entered orders into the system display. Buyers shall enter their orders into the system before this step and since starting this step, they cannot enter the order.
4-seller price: in this step which lasts for 2 minutes, the seller can increase his price up to 1% and reduce to their desired amount.
5-buyer price: in this step which lasts for 2 minutes, the buyer can edit his price. In this step, buyer can accept the seller price and cannot increase the price more than seller price.
If supply volume was higher than total demands of buyers who have accepted the seller price, trading will be done by seller price and with total demands of buyers who accepted seller price.
It is clear that if no buyer accepts the seller price, no trading will occur.
6-competition: if, at the end of buyer price step, total demands of buyers who accepted the seller price are higher than supply, the order enters into the competition. Conditions of this step are as following:
- Orders of sellers cannot be changes.
- Buyers cannot change the volume of demand.
- Buyers can only increase their demand price.
7-competition: the time for competition step is 2 minutes and trading is done with auction method. Processing of orders is based on the price priority, and in the case of equal prices, based on the order entering time into the system.
8-excess supply: if the supply volume was higher than demands of buyers who have accepted the price of supplier, excess supply can be traded in this step. Excess supply step begins from ending buyer price step and lasts to 16:00 PM of the same day.
The seller can declare the future days for continuing excess supply in the case of registering supply. In the case of transferring excess supply to the next working days, seller can delete excess supply from trading system.
Article 9: if auction holds for a commodity and no trading occurs because of the lack of enough demand, re-auction will be hold up to next three days that seller can determine this in the sale registration step.
Article 10: if a part or whole duties and responsibilities of relevant people in the trading was not possible due to the force majeure events, by the permission of competent authority, these people have no responsibility.
Article 11: in order to offer commodity in EOTC, suppliers are obliged to provide required cash and bank guarantees (unconditional) up to 6% of supplied commodity value to EOTC.
Article 12: for buying commodity in EOTC, the buyer shall provide required advance payment for EOTC before entering the order. Advance payment will be as following:
- In the case of cash payment, advance payment shall be 6% of purchase order value.
- In the case of providing guarantee, guarantees shall be 10% of purchase order value.
Article 13-trading settlement types are as follows:
1-cash settlement: in this method, contract price will be paid in cash form by the buyer to the settlement account during settlement duration.
2-agreed settlement: in this method, during settlement time, agreed settlement document will be confirmed by seller according to EOTC format and submitted to the clearing room by buyer along with other documents.
3-settlement with guarantee: the settlement with bank guarantee or opening letter of credit.
Note 1: in the settlement of trading with each of the abovementioned ways, taxes and compensations determined in this guideline shall be deposited in cash form and in deadlines to the declared accounts.
Note 2: submission of agreed document is considered as confirming settlement and related documents by seller. In this document, seller admits that he has received the price of contract.
Note 3: trading settlement way shall be inserted in the offer notice,
Article 14- trading settlement time is three days after trading.
Article 15-all settlements shall be done as following:
1-trading settled in a cash form: payment of contract price, fees and deductions
2-trading settled with agreed method: submitting agreed settlement document according to ETOC format and attached documents, payment of fees, deduction and advance payments
3-trading settled with guarantee: submitting guarantee, LC and other documents according to EOTC along with fees and deductions.
Article 16-if settlement is done with delay and up to 5 days after settlement date, buyer shall pay 0.2% of contract price for each day delay. This amount shall be paid to EOTC account for seller. Payment of this fund to seller is done through EOTC and after deducting obligations of seller in EOTC.
Article 17: if buyer does not settle up to 5 days after settlement date, the trading will terminate and the buyer is obliged to pay 5% of trading value as compensation along with other approved costs, including trading fee.
Article 18: in all contracts in EOTC, if buyer objects the quality of delivered commodity, he shall declare his objection along with related documents to EOTC up to one month. After expiring this deadline, no objection will be accepted by buyer.
Article 19-if seller avoids to deliver the commodity for any reason, he is obliged to pay 5% of contract price as termination compensation along with other approved costs, including fee. In this case, compensation and fees subject of this paragraph will be provided from guarantees or credits of sellers in EOTC.
Article 20: the seller is oblige to deliver the traded commodity in the delivery tolerance to the buyer/
Note 1: if the quantity of delivered commodity is in positive delivery tolerance limit, settling the funds caused by delivery tolerance will be done before delivery of the last commodity by buyer to seller. In the case of commodity delivery with positive tolerance and non-payment, the responsibility of delivering the last cargo is on the seller and EOTC has no responsibility in this regard.
Note 2: if the quantity of delivered commodity is in the negative tolerance limit, the seller is obliged to settle with buyer up to 3 days after the delivery of the last commodity. Otherwise, buyer can submit the request for collecting the related fund along with documents to ETOC up to 6 working days. This amount will be paid from funds or guarantees of sellers in EOTC.
Article 21-in the case of non-delivery of a part or whole commodity according to the schedule declared in the offer notice and conditions inserted in this guideline, the buyer can submit his request along with positive documents indicating delay in the delivery by seller to ETOC and asks for delivery with delay or termination of not-delivered part.
Note: in the case of not presenting request subject of this article to EOTC up to 10 days after ending delivery date, obligations of parties are deem fulfilled by parties.
Article 22-in the case of submitting termination request according to this guideline and non-delivery of the commodity by seller to EOTC, the seller is obliged to pay the original price of undelivered amount, termination compensation and other approved costs, including fees.
Note: compensation of terminating this article is 5% of undelivered commodity value to the contract price, plus 0.1% of undelivered price by counting days to the seller account.
In the case of submitting delivery request with delay, according to this guideline and confirming non-delivery of commodity by seller to EOTC, seller is obliged to pay 0.1% of undelivered price of contract by counting days for delay days between end of delivery and commodity delivery date as delay compensation.
Note 1: delivery with delay is possible up to 20 days of delivery deadline. In the case of non-delivery by seller, the buyer can ask for termination of trading up to the end of 20 days to EOTC. In this case, trading will be terminated and paid fund will be considered as delay compensation.
Note 2: in the case of not presenting termination cancel to clearing house up to the last day of 20 days, obligations of parties are deemed fulfilled by parties.
Note 3: delay compensation subject of this article will be calculated until the declaration of buyer or seller for delivery of commodity and confirming it with EOTC. This compensation will be paid up to the end of 20 days deadline of this article.
Note 4: in the case of non-delivery of a part or whole commodity, fees will not refunded to the seller.
Article 23-if schedules determined in this guideline are concurrent with holidays, those days will not be considered and the first day is the working day after holiday.
Note: in calculating daily compensation, holidays will be considered as non-holidays.
Article 24-if an agreement has achieved between buyer and seller and their legal representatives about the payment of contract price, commodity delivery, or other conditions which are out of conditioned declared in the offer notice and regulations, agreements are invalid and it will done according to the regulations, settlement, final settlement and contract delivery.
Article 25-if non-fulfilment of obligation of parties was caused by force majeure events, seller and buyer or both of them have no responsibility about paying funds, compensations and fines subject of this guideline.
Article 26-fee for trading in EOTC (purchase or sale) is 0.25% of contract price.
Article 27-value of trading for determining fines, compensations and fees will be calculated based on the basic price declared by the seller during offer registration.