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| TRADING
RULES |
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Trading
Floor Operating Hours:
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4 PM to 12 Noon Workdays – (Pacific
Standard Time (PST)) - Trading floor Open
for trading. Bids are accepted and posted to trading floor. Offers
will be accepted but not posted.
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12 Noon to 4 PM – Trading floor closed.
Offers posted to trading floor. Confirmation notices from previous
trading period sent to buyers and sellers and posted to trading floor.
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In order to accommodate orders from outside of
the Pacific Standard Time zone, the trading floor will open at 4 PM on
Sundays, providing, the following Monday is not a national holiday.
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A complete Calendar of trading days and operating
hours can be found at the top of each web page.
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| Offer
Postings |
Offers
are accepted 24 hours a day. All
offers are posted between 12 Noon and 4 PM on trading days.
Offers can be posted on the trading floor only by using the Offer Form. Upon
receipt of the Offer Form, a confirmation will be sent to the
seller/grower via fax or e-mail. The confirmation will verify information
as supplied by the seller/grower on the Offer Form. Only
after confirmation has been sent will rice be posted to the trading floor.
All offers are firm and exclusive
to CRE and it customers for the term stated on the Offer Form. This means that rice identified on the
Offer Form
cannot be offered or sold to another party during the time period
specified as “Length of Offer”. The minimum offer period is three (3)
trading days with a maximum offer period of ninety (90) trading days.
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Bid
Postings: |
| Bids
are received and posted only during
trading hours (4 PM through 12 Noon) for existing lots of rice, posted on
the trading floor. All bids
will receive a date and time stamp upon submission. All bids are firm
and subject to rules violation and penalty if confirmed and not
executed. They are irrevocable during trading hours. However, all bids
expire at the end of each trading day, unless they successfully purchase
rice.
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General: |
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Offers are confirmed and
the rice is sold when the minimum offer price is met or exceeded by a bid
or bids during the trading day. Offers will remain active during the
trading day in which the minimum offer price is met or exceeded until the
close of the trading floors at noon pacific time.
After trading closes for
the day, successful buyers and sellers will be notified by e-mail, fax or
telephone..
CRE will execute a contract with each successful buyer and seller,
and complete the transaction within ten (10) business days.
All transactions are final (Cash versus Documents), when payment is
made to, and warehouse receipts are received by CRE.
All transactions will be “in-store” at warehouse location,
first season storage charges paid.
CWA "SOP” Rules apply on
all commercial warehouse transfers.
All price postings will be stated
in US Dollars per hundredweight "over", or in addition to the
lower of USDA Loan Value or USDA World Market Price for the applicable
class and quality of rough rice, net of all commissions,
statutory fees and assessments.
CRE will qualify as first handler,
and invoice buyer for Rice Research assessments, and both the
seller/grower and handler shares of the California Rice Commission
assessments. CRE will show
payment of fees on seller/growers statement as “paid on behalf of the
seller/grower." If assessments were previously paid on any rice
offered it will be clearly shown on the offer form and CRE will not deduct
any assessments. The seller in this case will be liable for assessments
not paid if demanded by either agency.
The
buyer of Farm-Stored rice will pay one hundred percent (100%) of the
agreed price. Proceeds of the
sale will be deposited into a bank escrow account for the benefit of the
seller/grower. The
seller/grower will be paid ninety percent (90%) of the purchase price
prior to shipment, with the balance paid upon completion of shipment, and
calculation of a warehouse settlement using CWA “Standard Operating
Procedures”.
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GLOSSARY |
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Bid: (bid = buy) A tender to
buy a specific lot of rice listed on the trading floor, at a
specific price during the trading day.
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Bid Price:
Price per hundredweight (cwt) over, a buyer is willing to
tender, to purchase a specific lot, or lots of rice, posted on
the trading floor. Price is to be stated in US Dollars per hundredweight net
of all commissions and statutory fees and assessments.
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Expiration of Bids: All
bids expire at the end of the trading period (12 Noon).
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Offer:
(offer = sell) A tender to sell a specific quantity and quality
of rice, grown in a specific crop year, at a specific price, for
a specific time period (minimum of three trading days, maximum
of ninety trading days).
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Minimum Offer Price:
A price per hundredweight (cwt.) over, as specified on the Offer Form, that will cause CRE to confirm a sale,
should a bid price meet or exceed it.
Price is stated in US Dollars per hundredweight, net of
all commissions, statutory fees and assessments.
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Expiration for Offers: All
offers will expire, as per the term specified on the Offer Form, unless sold prior to expiration. |
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Over: Price
per hundredweight, in US Dollars, in addition to the lower of
USDA Loan Value, or USDA World Market Price for the applicable
class and quality of rough rice, net
of all commissions, statutory fees and assessments. |
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Firm: When
an offer or bid cannot be rescinded during the time period
specified. When an offer price is met or exceeded, execution of
the purchase/sale is mandatory under the trading rules of CRE. |
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