Jul 13 2010
The Integrated Nano-Science + Commodity Exchange (INSCX exchange) operates to provide the world’s only source of accredited, compliant and validated engineered nanomaterials available on any exchange. INSCX will transform the commercial sustainability of nanomaterials by providing Nanomaterials (SHE) accredited suppliers with the most direct route to market in a manner which meets the trade performance and material integrity requirements of commercial purchasers and downstream users of nanomaterials and nano-enabled commodities.
INSCX will deliver to competing interest a transparent marketplace for price and liquidity discovery. The preliminary series of Products scheduled for listing and services provided by INSCX exchange will be continually expanded and developed to enhance trade functionality, deliver new products and market data services.
The Market Steering Committee of INSCX exchange has authorised issuing the following series of global calls to nanomaterials suppliers, purchasers, commercial wholesale intermediaries and member states.
1. Nanomaterials Suppliers
Call to global nanomaterials suppliers to register with the exchange to be permitted right to supply for physical delivery (SHE) accredited, compliant and validated nanomaterials to INSCX Grade ECMS (Exchange Contract Materials Specifications). All INSCX Grade (ECMS) specifications will qualify for Indemnification (Insurance), IP Provision (Pricing of IP Value into the listed price), Trade Finance Support to enable supplier upscaling), Syndication of Fill (Single and/or Multiple Supply), Nominee Reporting and Assured Delivery Versus Payment (DVP). Supplier Grades: Suppliers wishing to supply Principal Contract Materials Specifications (PCMS) in addition to INSCX Grade ECMS contracts may apply to the exchange listing committee for consideration. Accepted Supplier Grades will qualify for features as standard associated with INSCX Grade ECMS Contracts. Permitted Trades: Cash (Spot), Forward (Future), Option (Traditional Option). Registration: Suppliers must first register their organisation completing the exchange Preliminary Registration Questionnaire (PRQ) available from the website or via request to: [email protected]
2. Nanomaterials Purchasers
Purchasers using INSCX exchange are guaranteed independent characterisation of materials Certified Good Quality (CGQ) and Assured Delivery versus Payment on CGQ issuance as determined by the independent characterisation agency contracted to the exchange. Purchasers are also guaranteed all materials exchanged through INSCX are insured, in compliance with Intellectual Property rights where appropriate and sourced from suppliers accredited to Nanomaterials (SHE) Accreditation standards. Purchasers seeking to source from the exchange similar to all applicants to use exchange facilities register completing the Preliminary Registration Questionnaire (PRQ) available from the website or via request to: [email protected] On completion of registration filing commercial suppliers and purchasers will be instructed to open a customer account with an Approved member firm of the exchange for the purposes of executing commercial user transactions on the exchange platform.
3. Intermediaries
Class of Intermediaries can include existing securities and commodity industry brokerages and/or organisations wishing to specialise as commercial, wholesale brokers and broker/dealers approved to execute trade in exchange listed contracts (Products). INSCX exchange is a strictly commercial as opposed to investment-grade commodity exchange operating as a closed-user, SRO (Self-Regulating Organisation) whose rule book governs its activities and those of its members. Nanomaterials are not yet regarded as investment-grade materials and cannot under law be promoted as such. Contracts listed on INSCX exchange are provided for commercial as opposed to financial investment purposes. Legislation: INSCX exchange adheres as an obligation to all formal legislation governing the manufacture, use, application and exchange of engineered nanomaterials and ipso-facto imposes this obligation on all members and customers of the exchange without exception. Approved firms are expected to adhere to Conduct of Business Rules including best-execution and commission caps set in accordance with the exchange charter.
Non-Investment Grade: The establishment of INSCX provides a basis upon which to evaluate nanomaterials in the future as potential investment-grade commodities on a par with other raw materials traded on traditional commodity markets. Similar to INSCX these established exchanges first developed as commercial user marketplaces during the 19th century evolving over many decades to become fully regulated investment-grade exchanges. When nanomaterials graduate to be considered investment-grade materials INSCX exchange will apply for approval as a Recognised Investment Exchange (RIE) in accordance with the UK Financial Markets Act 2000 and operate compliant with this Act and any other equivalent domestic and/or international financial regulations.
Intermediaries seeking to acquire Approved Firm membership of INSCX exchange authorised to act as commercial brokers and/or commercial broker/dealers are invited to apply to the exchange via; [email protected] Membership is accepted subject to completion of Approved Broker Series Examinations, designed to increase professional commercial understanding of Nanomaterials and ensure intermediaries are competent in adhering to exchange rules.
4. Affiliates
INSCX exchange is disposed to recommend value-orientated professional and commercial supports to global nanobusiness in general and specifically to exchange members and customers. Recommendations are based on the evaluation of quality and value of service provided by organisations ranging from commercial banks, venture capital, private equity, value investment funds, legal, accounting and management consultancy practices. These are referred to as Professional Supports. A second category of Commercial Supports refers to logistics, warehousing and other trade support providers. Organisations wishing to have INSCX exchange recommend and promote their services to its members and their customers are invited to apply to join the exchange as Affiliate members. Certain categories of Affiliate members are obligated to attain exchange Certification of Competency through successful completion of business-related educational courses provided by the exchange education department and extended NanoCentral network. Commercial support providers, logistics and warehouse providers, are obligated to complete the Nanomaterials (SHE) accreditation Scheme without exception to be recommended by and/or used by INSCX as providers. Affiliate applications are evaluated by the exchange Board of Governors. Applications submitted via: [email protected]
5. Member States
Member states are invited to liaise with the Market Compliance Committee to establish formal nominee trade reporting structures between national governments and the exchange. In addition, member states are invited to clarify with the Compliance Committee their proposals with regard to the tax treatment of bargains executed via the exchange platform. Of particular interest is to INSCX exchange is a suggestion to member states to explore the feasibility of imposing an official surcharge or stamp duty of 0.25% on all transactions executed through the exchange payable to the national and/or regional exchequer in the region of trade whether during Asian, European or North American trading hours. It is suggested by INSCX exchange this “Stamp Duty” or surcharge could provide a basis for member states to consider the provision of funding support to qualifying SME suppliers needing to attain Nanomaterials (SHE) Accreditation thus providing a cost-effective means to improve nanoindustry Health & Safety standards on a global scale.
INSCX exchange is firmly disposed to follow the tradition of all established commodity exchanges in seeking to willingly collaborate to meet the social and economic interests of national governments whilst safeguarding the rights of members to conduct business compliant and efficiently in accordance with standards of material and financial integrity required in the industrial exchange of raw materials.