Contract Approval Process
The approval process for completed trades
This important final stage in the trading process begins when trade negotiations are completed successfully. It is managed by a compliance division within VINEX in collaboration with the responsible Regional Manager.
To ensure VINEX delivers a valued and consistently reliable service, all trades are checked for compliance against the Trading Rules of the Exchange so that each trade can be executed unconditionally to the complete satisfaction of both parties.
Clearing Process
On the immediate completion of each trade an Irrevocable Commitment is generated and forwarded to the buyer and seller. At the same time the details are forwarded to Clearing to ensure compliance with the Trading Rules of the Exchange. There is also a review of the agreed terms and validation of the parties. Any irregularities or concerns are raised directly with the parties, initially by the VINEX Regional Managers.
Settlement Process
Following approval, the details are released to the Settlement team. Completed trades are subject to several important buyer and seller conditions to protect both parties. These conditions need to be fulfilled before a Sale & Purchase Contract can be executed.
Conditions
- Buyer: Completed trades are conditional on acceptance of a final sample and technical specification declaration prior to distribution of the contract. Depending on the product traded, this condition may be waived in part or full at the discretion of the buyer.
- Seller: Completed trades are conditional on the seller’s acceptance of the payment terms negotiated during the trading process. This condition applies for 7 days from the time the seller receives the completed trade details.
The Clearing and Settlement process is usually completed within 7 – 21 days and is most influenced by the length of time it takes for the supplier to despatch a final sample and receive an acceptance.
The status of a completed trade throughout this process is updated and displayed on your Dashboard.