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Enrollment – SPOT Polling
Application - Spot Price Polling
All the Applicants/Value Chain Participants may please note that the Exchange on receipt of the application will carry out the necessary due-diligence with respect to your application and the same shall take its due course of time. Please note that submission of the application does not entitle you to participate in polling, unless your application is approved by the Exchange. Further, please note that the Exchange has the sole right/discretion to accept/reject the application without assigning any reasons whatsoever.
- Polling participants are requested to provide the price quote for the quality parameters as notified in the contract specification of the commodity and as re-iterated by the representative of the polling agency from time to time.
- Individual / representative as confirmed by polling participant will be the point of contact for providing price quote and therefore would in effect become an individual of significant influence. The polling participants are requested to attend the Submitter Committee meetings of the Exchange, to be held annually or as the need may be, depending on the market development necessities.
- Polling participants are requested to consistently provide unbiased quotes.
- Polling participants are requested to furnish relevant information which will be necessary for the Exchange to ensure spot prices are truly reflective of physical markets.
- Polling participants are expected not to disclose the price quoted by them.
- The price quoted by the polling participant should be based on the inputs in the following order:
- Inputs based on the actual trade data. As these are the trades taking place in the physical market, these are the most accurate and reliable prices/rates and are mostly based on the supply and demand of underlying commodity.
- Inputs based on the observed/reported transactions. Similar to the actual trade data, these are also based on the prevailing market supply and demand and are to be considered second in the order of importance.
- The polling participants are expected to use their experience of the market in the respective commodities to ascertain if any adjustments need to be made for submitting the rates.
Some of the considerations could be:- the consistency of the rate with any known market rate,
- knowledge of transactions having taken place in the market and the time elapsed since then (i.e. in case of significant market movements, transactions dealt some time back may need adjustment)
- known transactions but are away from the market rates (i.e. outliers) should not be submitted
- The polling participant shall keep its identity as a polling participant of the NCDEX undisclosed.
- The polling participants shall register only once as a polling participant of NCDEX and shall not re-register himself directly or indirectly as a polling participant for the same commodity.
It is well established that the reliability and credibility of spot prices play
a crucial role in commodity markets and can be achieved by following ethical practices
and code of conduct.
Polling participants are therefore requested to contribute to the process as per the guidelines provided herein and help in establishing robust benchmark which will be universally accepted.
Polling participants are therefore requested to contribute to the process as per the guidelines provided herein and help in establishing robust benchmark which will be universally accepted.