Scroll down to view may of the more common questions users ask about the Exchange. In addition to this FAQ section, further information can be obtained using the Guide and Glossary links on the trading platform or by contacting Exchange staff during trading hours.
Welcome to the Live Trade Platform (TORS) operated by INSCX exchange, the world commodity exchange for trade in polymers, base oils. advanced materials and engineered nanomaterials. Here we list answers to the common Frequently Asked Questions (FAQ’s) concerning the Exchange for your information. Additional supports and clarifications can be obtained by contacting the office of the exchange Registrar or any member of the trading team. Tel: 44 (0) 203 137 5187 or via e-mail: firstname.lastname@example.org
INSCX exchange is a formal commodity exchange system functioning as a self-regulating organisation (SRO) listing materials for physical delivery, providing a range of industry support tools; from the exchange itself, through specialist auctions and tenders including non-commercial member merchant involvement, to execution and settlement. INSCX also offers a number of supports and services which are outlined on the main website. We are based in the United Kingdom and specific to price discovery and instruction of physical delivery trade as opposed to financial or speculative trade in the materials we list for trade. As a marketplace, INSCX exchange follows many of the conventions long associated with the commodities industry over many decades designed to ensure a neutral, open, and fair market for all participants. INSCX exchange is aimed to cater for the interests of producers, end-users and distributors of the various materials which are quoted.
The trading floor is an electronic communication network (ECN) accessible via https://inscx.com/trading to registered and approved users of the Exchange. On approval, users are issued a unique LOGON access to the trade floor. To register to access the Exchange applicants are invited to complete the online form via the link: https://inscx.com/register/
To register on INSCX, please go to https://inscx.com/register/ and complete all the information on the form and submit. After successful verification of furnished information, to access the Exchange you pay the annual subscription fee for the appropriate membership fee for the category of membership sought. Payment can be made online via this link: https://inscx.com/trading/subscribe/ On receipt of the subscription, the user is notified as authorized to access, trade (or both) on the Exchange platform and issued secure LOGON access.
For actual physical trade, payments are handled in accordance with supplier terms and conditions for a Reported Only trade which is a Bilateral trade type. Where the Exchange acts as counterparty between buyer and seller, payments are cleared against contract / on delivery through the Exchange clearing account system. When you are using our secure online payment page to subscribe for access to the live trade platform, as opposed to instructing actual physical trade, your payment is processed by a third party payment processor, who specialises in the secure online capture and processing of credit/debit card transactions. If you have any questions regarding secure transactions, please contact us.
The services provided by INSCX are: : Online Physical Trading : Auctions and tenders : Phone brokerage : Real-time Quotations : Physical Trade Execution : Trade Liquidity : Spot/Forward trade types : Trading chat : Clearing Account services
The Exchange is open live during market hours and can be used to obtain accurate price discovery in the commodity categories listed (see Using INSCX) or to instruct actual physical sale or purchase of same. Access for a buyer or seller to place trade on the Floor following registration and approval to use the Exchange, is first communicated to the specialist merchant member, or via the online order ticket function. The specialist merchant operates the trade desk of INSCX on an Agency basis posting offers and bids on a best price basis. On receipt, the specialist broadcasts the trade anonymously on the live trade floor, and the parties then who are interested in the deal contact the specialist to accept and/or bid against. The originator gets reflected all the offers and/or bids anonymously against the original order, where then he / she has the option to choose the best. Once the originator chooses the suitable counter to the trade, the specialist discloses both parties to one another where there is agreement on the particulars of the trade. All the negotiations are done online and the specialist provides any assistance required by the parties during the same. When a contract is made, the trade is reported by the specialist in nominee (anonymous) format to the general market, confirmed principal counterparty to one another ONLY. Where the specialist is a principal counterparty to the trade the Exchange manages trade settlement.
Commodity exchange systems have long had different categories of member. Typically, members are defined as Commercial and Non-Commercial member types. Commercial members are typically producers or end users, while non-commercial members are agency facilitators such as Merchants and principal traders trading on their own account.
The introduction of Broker Assisted Trading is of longstanding on all the world major exchanges. This concept of a non-commercial broker or merchant class of member was first introduced on exchanges to ensure the discipline and neutrality of the market for all participants, and is often used by parties who have the capacity to trade internationally for commodities, but do not wish to deal directly for various reasons. On INSCX exchange the term “Merchant” is used to describe broker activity in this regard. Merchants, including the specialist merchant (Exchange Trade Desk) act to facilitate and are authorised to trade as principal on their own account on a cleared funds basis.
On INSCX the auction process prior to trade agreement is conducted anonymously live on the dealing floor and voice-supported by the specialist trade desk of the Exchange. Parties remain anonymous to one another up to the point where a deal is confirmed. The Parties concerned with the trade (buyer/Seller) find out whom the trade has been conducted with only when they have agreed to trade. The general market does not learn the identity of the trading parties and receive only a nominee notification that a trade in a given commodity has occurred at a given price for a given volume. This raises the issue of counter-party risk. All counterparties on INSCX are fully vetted as capable of performance in advance and fully funded, using cleared funds deposited into the Exchange clearing account system managed through several UK banking institutions. The Exchange does not permit credit transactions although the specialist can provide liquidity to support approved producer (and other seller members) where there is delay between contract agreement and physical delivery. Selling members of the Exchange may apply to be pre-approved for liquidity to the specialist merchant.
INSCX permits 2 primary trade types. 1. Bilateral: This is a trade agreed between a registered seller and buyer bound by the terms of trade of the seller, and once executed reported by the seller to the Exchange. 2. Agency: This is a trade where the Specialist Merchant (the Trade desk of the Exchange) has acted on an Agency basis buying/paying a seller match-selling/delivering to a buyer. Any contract which is created using the Exchange on an Agency basis is also legally binding on the parties agreeing to the trade in question.
A preview of any bid (buy order) / offer (sell order) can be seen by clicking the Ref. ID (left column) adjacent the commodity listing on the live trade platform. Clicking the Ref. will load an order ticket where the member can see all bid /offers anonymously pertaining to that commodity listing. Detail exposed by the Order Ticket are: Commodity, Quantity, Bid Price /Offer Price, Last Trade, Volume to date, daily change. Details as to the originator identity of any Bid / Offer remains anonymous disclosed only to the specialist who has accepted the order for placement and to any party agreeing a subsequent trade.
A user can monitor, alter or cancel any order they have placed on the platform during the trading session. Alterations and cancellations are first transmitted by voice or electronically to the Specialist who then process the request accordingly.
No. INSCX is specific to a prerequisite number of physical commodities ranging from nanomaterials, polymers, base oils, TiO2 and specialty minerals. Additional commodities can be requested for listing at the discretion of the Exchange.
Yes. INSCX levies tariffs on some, but not all categories of member. Full details are available on the corporate website: https://inscx.com/inscx-exchange/
The Exchange can be used to either trade or just access market data or both. Many members can opt simply to use the platform for data access only.
The cost of Agency trading on INSCX (termed clearing or merchant fees) varies depending on the commodity traded and is based on a % value of the transaction. An Agency trade is where the Specialist (Trade desk) acts to make payment to the seller against contract, match selling to the buyer agreeing to trade. Clearing frees are payable equally split between buyer and seller on trade completion. The % of clearing fees commences at 0.10% and are capped by the Exchange at 1%. NOTE: Where a buyer or seller chooses a particular merchant to instruct a trade, the Merchant is also authorised to charge a fee commensurate with the clearing rate levied by the Exchange.
Where a trade is agreed on a bilateral basis (direct between a seller and a buyer), the seller is charged a nominal reporting fee by the Exchange. This cost is disclosed on advance of any trade instruction.
Trade on INSCX is reported anonymously in nominee form through the Specialist merchant (the Exchange trade desk) citing Commodity, Trade Type, Quantity, Basis and Price only. Details of counterparty to a particular trade remain anonymous to the general market, known only to the parties to a given trade. When a trade is agreed, the specialist “Prints” the trade in nominee format on the NEWS Alert section of the trade platform. On the individual commodity Order Ticket, last trade and volume to date updates accordingly.
A key function of commodity exchange systems is price discovery and knowledge of the last traded volume and price is critical to enabling that function. It is for this reason that trades are reported and broadcast anonymously on INSCX so market participants can assess trade interest in a listed commodity without the identity of the buyer or seller being disclosed.
A Reverse auction is a term used to when a buyer for purchase of a commodity they require wishes to purchase at the best price without having to negotiate with each seller individually. On posting of the buyer BID, the sellers offer the best price the item as per their capacity. In most cases the lowest offer will secure the order, unless the buyer increases the bid to accept the best offer. Reverse Auction means placing an enquiry for the items required. On receipt, the specialist merchant of INSCX enters the BID details necessary for a seller to be able to contemplate placing an offer. The target price for the commodity in a reverse auction is the highest price that the buyer is willing to BID. This enables the buyer to locate the minimum offer without incurring any costs or extended efforts for finding and negotiating a trade. As soon as the instruction to BID is broadcast on INSCX, all the other members registered for that commodity can monitor the BID while viewing the particular commodity on the live trade platform. The specialist will also flash the BID in the Trade Alert section and via e-mail to registered users. The interested members can then load an order ticket to send their respective offers to the specialist who will post on a low-to-high basis. At each stage where buyers / sellers wish to adjust their respective Bids / Offers, these can be conveyed to the specialist for amendment.
A Forward auction is a term used when a trade is initiated by a seller for sale of the commodity which they can supply at the best price without having to negotiate with each buyer individually. The buyers in response can post BIDS against the seller OFFER and the highest quote stands most likely to get the deal provided the seller accepts. Forward Auction means placing an order for commodity that the seller can supply. A registered member of INSCX can place an OFFER using the Order Ticket which is transmitted to the Specialist and/or telephone/e-mail through the instruction. The minimum price for the commodity in forward auction is generally the lowest price that the seller is willing to accept. This enables the seller to locate the maximum quote without incurring any costs or efforts for finding and negotiating with buyers. As soon as the offer is broadcast anonymously on INSCX, all the other members registered for that commodity can monitor the OFFER while viewing the particular commodity on the live trade platform. The specialist will also flash the best OFFER in the Trade Alert section and via e-mail to registered users. The interested members can then load an order ticket to send their respective BIDS to the specialist who will post on a high-to-low basis. At each stage where buyers / sellers wish to adjust their respective Bids / Offers, these can be conveyed to the specialist for amendment and are visible on the live trading platform.
INSCX is a self-regulating organisation (SRO) governed by the laws of contract in the United Kingdom and international chemical registration requirements. The Exchange is not a speculative market and is strictly open only to commercial-users. INSCX also enforces additional rules particular to trade in each listed commodity, the rules particular to the commodity in question. These terms are available from the Exchange registrar on request specific to the commodity category in question.
When a deal is agreed, the deal settles in accordance with supplier terms and conditions (Bilateral Trade Only) which are uniform for a given commodity and approved by the Exchange. For Agency trades, settlement is in accordance with terms stipulated by the Exchange. Knowledge of these terms and conditions can be made known in advance of any trade instruction that may lead to a trade agreement, the agreed trade often referred to as a Bargain.
The Exchange specialist merchant can provide access to logistical, customs clearance and materials inspection services where required.
Transactions can be major multi-currency but permitted only in the currency of trade specified for each commodity listing.
No. The obligation to perform is binding on both parties to an agreed trade. Where there is dispute, the Exchange offers an arbitration facility, costs borne by the party initiating the dispute awarded on resolution to the aggrieved party.
For many users it may take time to become familiar with protocols and procedures followed by INSCX. Users are invited to view the Guide and Glossary tabs on the trading site for further guidance and welcome to request further tutorials from Exchange registrar and/or the Specialist merchant members of INSCX.
The specialist merchant acts to manage the trade platform and accept instructions from members to trade on the platform on a best-price basis. On INSCX exchange the specialist merchants are NCM Global Limited, a 100% wholly owned subsidiary of INSCX exchange and in respect of nanomaterials, Nanoshel (UK) Limited, a sales/trading merchant of the Exchange. (See Dealers Tab)
This is a term used to describe a situation in which the spot or cash price of a commodity is higher than the forward price. Backwardation is associated with supply shortage in the commodity concerned.
This is a term used to describe a situation in which the spot or cash price of a commodity is lower than the forward price. Contango is associated with an oversupply in the commodity concerned.
The Exchange can be contacted during UK and North American business hours via online form, phone or e-mail using the link: https://inscx.com/contact-us/
Producers can use INSCX for a variety of reasons outlined in points 1-6. Firstly, 1. To access price and market data for the categories they wish to trade or observe, e.g. Polymers, Base Oils, TiO2 and nanomaterials. 2. To submit anonymous sell orders SPOT and/or Forward at prices they choose. 3. To access technical analysis tools such as charting. 4. To report trades anonymously to the Exchange dealers to aid better and more credible price discovery. 5. To trade on a cash versus contract basis with their approved end user customers should they choose. 6. To secure more business as any orders from cash customer submitted to the Exchange Specialist to purchase for example polymers, can only be conveyed to producers who are actual members of the Exchange.
Buyers can also use the Exchange for a variety of reasons. For example, buyers can use INSCX to access market data producers and buyers provide to the Exchange to aid credible price discovery, or to instruct trade anonymously on a front month (SPOT) or Forward basis assured of supplier performance.