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EXCHANGE REPRESENTATION

Being a full member of the Commodity Exchange, the Company performs exchange representation and concludes exchange transactions on the grounds of the Commodity Exchanges and Commodity Markets Act, the rules on its implementation and the regulations of Sofia Commodity Exchange AD.



The goods traded at the Exchange are divided into three main groups:

   • Food products

   • Non-food products

   • Grain


A detailed description of the different groups of goods can be found in „list of the exchange goods traded”.

Before the conclusion of each exchange transaction, the Company executes a contract for exchange representation with its Client (Principal) and the particular order is attached to the contract, the order containing detailed description of the goods and the terms for the sale or purchase thereof.


The transactions concluded at the exchange are mostly the following:

• transactions with immediate performance where the parties agree on the delivery of goods held in stock within 10 (ten) business days after the conclusion of the respective transaction.

• forward transactions where the parties undertake to sell or purchase particular goods at the price determined at the conclusion of the transaction specifying a definite deadline for the performance of the delivery.

 

GOODS DELIVERIES UNDER THE PUBLIC PROCUREMENT ACT

In respect of the Public Procurement Act effective as of 1 October 2004 promulgated in the State Gazette No. 28 dd. 6 April 2004, Art. 90, para.1, subpara. 11 and Art. 104, para.1, subpara.9, the Exchange Member DELGADO & MALEEV LTD. accepts orders and performs exchange transactions concerning the purchase of goods subject to deliveries on public procurement assignments by government companies and entities.

The selection of negotiation procedure without announcement under Art. 90, para.1, subpara. 11 and Art. 104, para.1, subpara.9 of the Public Procurement Act through the Commodity Exchange facilitates the Assignor of the order to a great extent ensuring a much shorter period for the selection of supplier compared to the other procedures under the Public Procurement Act.

The Exchange on the other hand, through its mechanisms for exchange trading established years ago and due to the information about the various goods price movement incoming daily, provides conditions for the objective selection of a supplier and the timely conclusion of an exchange contract. The exchange contract is guaranteed according to the regulations of the Exchange through guarantee deposits paid in by the parties to the exchange transaction concluded.

According to Art. 29 para. 1 of the rules on implementation of the Public Procurement Act (State Gazette No. 84 dd. 27.09.2004) the Assignor may decide to assign a public procurement through an exchange transaction when the order concerns the delivery of the following goods included in the supplement to the regulations:

NON-FOOD PRODUCTS:

unleaded petrol, leaded petrol, gas oil, diesel fuel, heavy fuels (black oil), lubricants, firewood, coal, briquettes.

FOOD PRODUCTS:

beans, beef, veal, chicken, pork, non-carved, cooking oil, pasteurized milk, wheat flour, white sugar, salt.

GRAIN:

wheat, maize, rice, barley, rye, oats.