Electronic Silo Certificates Announcement
After receiving market feedback, ESC is pleased to announce a revised pricing structure effective 01 February 2007.
The major changes include reflecting a sliding scale in order to not prejudice smaller tonnage certificates; charges are upfront to avoid confusion and the charge will not apply to legal paper certificates (where participating silo operators elect to continue managing legal paper certificates themselves and not use ESC to manage paper where they choose to become purely electronic, discussed below). In addition certain innovations are planned including auto-paper confirmations and telephonic transfer ability through a dedicated call centre that leverages sms functions for authorisation.
Pricing
The current pricing model of a flat fee per certificate was introduced several months ago after prior feedback that the market found difficulty with the previous per ton and per trade costing model, hence the move to a simple per certificate once off pricing. However the current flat fee does not equitably deal with the small volumes certificates. Accordingly the following change will be implemented effective 1 February 2007:
Scale
| Once off per certificate: |
|
| 0 – 25.999 tons R 20 |
(25 ton certificates fall into this category) |
| 26 – 50.999 tons R 40 |
(50 ton certificates fall into this category) |
| 51 – 100.999 tons R 80 |
(100 ton certificates fall into this category) |
| > 101 tons R180 |
|
Other:
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All fees will be charged on issue only with immediate effect (thus eliminating the charge on cancellation taken by some operators on non-Safex certificates that caused confusion). |
| • |
ESC charges a participating silo operator based on certificates issued. Silo operators will determine how they engage with clients directly. The per ton issue costs levied by the individual silo operators are for the account of each silo operator, and is outside the scope of ESC. The silo operator still initiates, authorises and creates the electronic certificate and ESC then manages the post-issuing process. |
| • |
Pricing applies to Safex and non-Safex electronic certificates. |
| • |
No system or registration fees to participants and end users. |
Paper certificates and other points
| • |
No ESC fee will be charged to silo operators on the legal paper certificates issued by the silo operator themselves. |
| • |
Individual silo operators will determine whether they wish to continue dual legal paper and electronic certificate systems. Where a silo operator has determined that they wish to become completely electronic and not deal with legal paper certificates, ESC will make a facility available to manage legal paper certificates on their behalf. The silo operator will outsource their back office legal paper function to ESC. For silo operators who will become completely electronic, their certificates will first be in electronic format (and the electronic fee will apply), including where users wish to have a legal paper certificate (which will be materialised and later dematerialised by ESC for electronic delivery back to the silo operator). |
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New features to be included are telephone based transfers and an option for auto-paper fax confirmation on issue of an electronic certificate. Although not legally tradable, the instant hardcopy fax on issue will greatly assist producers. |
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The process dealing with legal paper certificates originating from an electronic format will be circulated in due course and will be centralised for collection at ESC. |
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Conversion of formats between paper and electronic and vice versa in the same denominations will not have an ESC fee applied. |
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Roll over’s regarding marketing seasons for Safex certificates in the same denominations for the purpose of bringing storage up to date will not have an ESC fee applied. |
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The absolute independent and confidential nature of the information is guaranteed |
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As most industry participants are aware, Notice A655A was circulated earlier this year announcing the JSE accepts and delivers electronic silo certificates in completion of futures contracts to all participants of the ESC system. |
For more information about ESC please visit www.silocerts.co.za,
e-mail support@silocerts.co.za or
call Sanet Donk
or Susan Van Niekerk on 011 797 5591/7. |
