Glacex Commodities Protocol
Note: Glacex provides a trusted independent third party role, instructing its lead advisors - CMS Cameron McKenna (CMS) - to fulfil relevant aspects of the transaction. Mutual NDAs will be in place between Glacex and buy side / sell side introducers, Sellers of title and Buyers of title. Buy side and Sell side introducers MUST formally disclose to Glacex the Buyer and Seller details. Glacex passes this information on to CMS to enable them to achieve KYC and AML when instructed.
Buy side/Sell side introducer MUST properly disclose the deal parameters. For example, Buyer requires/Seller has for sale 25,000 MT per month of ICUMSA 45 sugar on a minimum 12 month contract. The Buyer’s/Seller’s target price is $475.00 per MT. Buyer wishes the product delivered CIF to (Port of Unloading). Seller offers product FOB at (Port of Loading). Maximum vessel size is 12,500 MT.
There are market accepted standard commissions for individual commodities. The Glacex Protocol is very simple:
• 1/3 of the commission pot to the Buy side
• 1/3 of the commission pot to Glacex (for facilitation etc etc)
• 1/3 of the commission pot to the Sell side
* Note: Glacex - and its advisors - facilitate and police the transaction. Collectively we have hundreds of years of commercial experience across many business sectors.
We instruct CMS to prepare a simple and proper Profit Share Agreement which will be appended to the transaction’s contract documentation.
1. Seller of title initial actions
• ‘Seller of Title’ engages* with CMS Cameron McKenna (CMS) as ‘Seller’.
• CMS do KYC (Know Your Customer) and AML (Anti Money Laundering) checks. Seller passes these checks
• Seller lodges $25k in CMS client account to cover their half of the CMS legal fees in drawing up the Sales/Purchase Agreement. If fee is less, CMS rebate the balance to the seller.
• Seller provides PoP (Proof of Product) to CMS who confirm to counter party (Buyer and/or their attorneys) they have received satisfactory PoP. * Note: Seller of title can use their attorneys to liaise directly with CMS using this protocol (ie attorney to attorney) if they wish. Or the Seller can interact directly with CMS.
2. Buyer of title initial actions
• ‘Buyer of Title’ engages* with CMS Cameron McKenna (CMS) as ‘Buyer’.
• CMS do KYC and AML checks. Buyer passes these checks
• Buyer lodges $25k in CMS client account to cover their half of the CMS legal fees in drawing up the Sales/Purchase Agreement. If fee is less, CMS rebate the balance to the Buyer.
• Buyer provides PoF (Proof of Funds) to CMS who confirm to counter party (Seller and/or their attorneys) they have received satisfactory PoF. * Note: Buyer of title can use their attorneys to liaise directly with CMS using this protocol (ie attorney to attorney) if they wish. Or the Buyer can interact directly with CMS. 3. Glacex actions
• CMS confirm to Glacex they are satisfied that Buyer and Seller have demonstrated commercial/financial capability and capacity to progress and successfully conclude the commodities transaction.
• Glacex contact the Buyer and Seller via telephone (or Skype or GoToMeeting) to introduce ourselves and to obtain verbal confirmation that BOTH parties wish to engage
• Upon confirmation of desire to engage, Glacex instructs CMS to compile/ author contract documentation.
• CMS liaise directly with Buyer/their attorneys and Seller/their attorneys to achieve a mutually satisfactory contract
• As each deal is different and will have unique characteristics, Glacex will issue a Deal Timetable once all the parameters have been disclosed by the relevant parties.
• If necessary, break and/or breach penalties may have to be in place. Note: If face to face meetings are needed/preferred they will occur @ CMS Cameron McKenna’s headquarters in London.
Please click here to confirm your acceptance of the above Commodities Protocol and to register your element of the transaction. Please fill in the Register Form. The Acceptances fields are in the middle of the form