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.