Over the Counter (OTC)

Definition:

  • One of both Shippers creates Trade Proposal and states the counterparty.
  • The shippers agree on a capacity trade in advance (bilaterally outside of the platform), registration, confirmation and validation is done on the PRISMA platform.
  • Price and conditions of the trade are agreed upon by the parties in advance.
  • Counterparty is notified as soon as the Trade Proposal has been submitted and validated.
  • Counterparty can respond to the Trade Proposal, the Request/Offer is considered as the confirmation of the counterparty.


Rules that apply for OTC deals:

  • The counterparty that accepts or rejects the deal cannot change the price
  • The vendor can also send the OTC request to several parties



Initiated by Selling Shipper
Initiated by Buying Shipper
OTC
Offline negotiation on price & conditions
•Selling Shipper registers transaction
•Buying Shipper only confirms
Offline negotiation on price & conditions
•Buying Shipper registers transaction
•Selling Shipper only confirms



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 was submitted, it is automatically accepted
  • FCFS proposals are anonymous until the deal has been confirmed



Initiated by Selling Shipper
Initiated by Buying Shipper
FCFS

  • Binding offer by Selling Shipper at fixed price
  • Countered with (partial) Response by Buying Shipper


  • Binding request by Buying Shipper at fixed price
  • Countered with (partial) Response by Selling Shipper



FCFS Process Chart



Call for Orders (CFO)

Definition:

  • 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.

Rules that apply to Call for Orders:

  • 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.



Initiated by Selling Shipper
Initiated by Buying Shipper
CFO
•CFO started by Selling Shipper
•Buying Shipper proposes (partial) Response & price
•Response evaluation by Selling Shipper
CFO started by Buying Shipper
•Buying Shipper proposes (partial) Response & price
•Response evaluation by Buying Shipper


CFO Process Chart





Additional Secondary Features: Trader Lists

  • Trader lists can be used to restrict secondary trading to a defined number of counterparties
  • Trader lists help shippers to restrict trading in accordance with their company’s  requirements (e.g. in terms of credit worthiness)
  • When creating a trade proposal or placing a response shippers can decide whether they would like to apply a trader list in their trade proposal / response
  • It is possible to prepare a number of trader lists in advance


Limitations

  • A trader list has to have at least three entries
  • Once a trader list is used, it can be withdrawn but no other list can be applied to the same trade proposal or response
  • Once a trader list is applied, additional entries (shipper companies) may be added to the list
  • Entries may only be removed after the trade proposal or response has reached a final status (e.g. expired or finished)



Steps on the UI: Trader Lists

  • Trader lists allow you to create groups of 3 or more shippers that you like to be able to participate in secondary trading for you proposals / responses




Additional Secondary Features: Trading Conditions

  • Shippers can choose standard trading conditions provided by PRISMA (EFET standard contract) or attach their own trading conditions to the product.
  • Individual trading conditions can be uploaded to the platform. Those documents are then available during the creation of a trade proposal.