t2e represents neither the buyer nor the seller but aims to find the fairest market price for both parties.

Trading on t2e

Members can view the online trading boards, which display live and transparent PRN prices in various different markets and in all materials. Members stay up to date with price movements and trading opportunities by speaking with their dedicated account manager or using the regular market reports sent to them. Everything from initial bids and offers to the final settlement process is dealt with by t2e within 7 working days.

Trading fees

t2e charges a standard trading fee of 25p/tonne or 50p/tonne for PRNs trading above or below £5.00, respectively.

Trading fee discount in Forward Markets

A 40% discount on trading fees is available to participants trading in the Forward Markets by meeting the following criteria:

• Direct Debit place
• Completing t2e reprocessor & exporter survey (sellers only)

For a survey contact Dianne Ferry (df@t2e.co.uk) 0844 800 9943

The Markets

The Spot Market

PRNs bought and sold on the Spot Market are must be paid for 2 working days after trading and delivered within 2 days after payment is received. A t2e spot contract is therefore settled within 7 working days. The Spot Market for each compliance year opens on the 1st December and closes on the 31st January.

The Forward Markets

The Forward Markets allow members to secure price and volume for delivery and settlement at a known time in the future. Both parties are required to pay deposits within 2 working days after the trade takes place. This provides security in the event that either party default on the contract. Each forward market closes for trading in the 1st - 2nd week of the month, and any bids/offers not traded by this point will expire the following day. The settlement date and completion date for contracts then follow. Please see below for current 2011 - 2012 Forward Market details.

Settlement

NOTE: For forward contracts the procedure is the same, but begins on the expiration date, rather than the transaction date.

VAT

How will VAT be collected?

VAT is payable at the applicable rate by the buyer. For example, if you buy 10 tonnes at £25.00 per tonne then VAT will be due on the transaction of £250, payable by the buyer to the seller. For all transactions carried out through t2e, t2e will act as the Agent of the seller for VAT purposes only.

What is VAT charged on?

PRNs, Trading fees, participation fees, and document issuing fees

When is VAT charged?

In the Spot Market, VAT is charged at the point of transaction.

In the Forward Markets, VAT is charged at the point of expiration.