11:17:33 PM | 28/12/2010
Vietnamese Deputy Prime Minister Nguyen Sinh Hung has agreed to pilot forward trading at the Buon Ma Thuot Coffee Exchange Center (BCEC) for one-year period from the date of operation.
The deputy PM asked local authorities to work with the Ministry of Industry and Trade to ensure operation of the BCEC in line with current regulations, the government said on its website.
This aims to provide more trading options for both traders and farmers and help standardize the local coffee market and minimize the time needed in making deliveries for importers.
Under the forward trading method, contracts are signed for future deliveries at a given price.
In October last year, Daklak Province authorities established a steering committee for launching the forward trading operation on the coffee center. The BCEC and local agencies have agreed on regulations for forward trading, forward contracts, settlement and deliveries.
The BCEC is testing the software system designed to support forward trading and systematizing regulations for the new trading method.
The BCEC, which was launched in Dec 2008, has so far mainly supported spot trading besides other traditional services like warehousing and quality checking for coffee traders.
The center currently has 21 enterprises registered as trading members and 40 farmers and agents registered as sales members. (chinhphu.vn)
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