Secondary market - OTC, FCFS, CFO

Modified on: Tue, 20 Jun, 2023 at 4:30 PM



There are three types of trading procedures in the secondary market. Each TSO, besides establishing whether to allow secondary tradings for a shipper, also decides if and which types of procedures to allow at his network points.

Over the Counter (OTC)

  • Prices and conditions are agreed upon by the parties in advance off the platform.
  • Only afterward one of the shippers creates a trade proposal, either to sell or to buy, on the PRISMA platform, indicating its counterparty.
  • The counterparty is notified as soon as the trade proposal has been submitted and validated.

  • Registration, confirmation and validation are performed on the PRISMA platform.
  • Counterparty can only respond to the Trade Proposal. The resulting Request/Offer is considered to be the confirmation of the counterparty.
  • The counterparty that accepts or rejects the deal cannot change the price.
  • The vendor may send the OTC request to several parties.

OTC Process Chart

First Come First Served (FCFS)

  • The price of the proposal to buy or sell is considered as the fixed price the buyer/seller is willing to pay/sell for.
  • Once the request or offer has been submitted, it is automatically accepted.
  • FCFS proposals are anonymous until the deal has been confirmed.

FCFS Process Chart

Call for Orders (CFO)

  • Price of the proposal to buy/sell is considered as max./min. the buyer/seller is willing to pay/sell for.
  • The party who created the trade proposal can wait for more requests or offers to come.
  • The party who created the trade proposal can select the requests or offers he accepts from all received requests or offers.
  • CFO proposals are anonymous until the trade has been confirmed; this implies that the trade cannot be negotiated.
  • When placing a request, the buyer can set a maximum price he is willing to pay.
  • When placing an offer, the vendor can set a minimum price he is willing to accept.
  • Both the buyer and the vendor have to set the maximum amount of capacity that they request/offer.

CFO Process Chart

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