The approval process for completed trades
This important final stage in the trading process begins when trade negotiations are completed successfully. All completed trades enter the Clearing & Settlement process, by a compliance division within VINEX in collaboration with VINEX Support.
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.
On the immediate completion of a trade an Irrevocable Commitment is entered into by both parties. At the same time the details are forwarded to VINEX Clearing to ensure compliance with the Trading Rules of the exchange. There is also a review of the agreed terms and validation of both parties. Any irregularities or concerns are raised directly with the parties, initially by VINEX.
Following Clearing approval, the details are released to the Settlement team and the agreement documentation is generated. The documetation is first delivered to the seller for review, acceptance of the payment terms and signing. Then, the signed agreement is delivered to the buyer for final review and signing.
All completed trades are subject to two important conditions to protect both parties. These conditions need to be fulfilled before a Sale & Purchase Agreement can be executed.
- 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 technical specification, to receive an acceptance.
The status of a completed trade throughout this process is updated and displayed on each member's exchange dashboard.