How do I trade?
How do I start to trade on t2e?
A company needs to become a member of t2e before it can start trading. The requirements for membership - and the documents which need to be completed - can be found on the 'How do I join page?'. Once a company has completed these documents t2e will issue a passcode for each authorised trader at the company. This passcode must be used each time the trader places an order with the Exchange and provides the security that only authorised persons can place orders on the Exchange.
When can I trade?
The PRN and WEN Markets are open during the hours of 10.00am to 4.00pm each trading day - an Edinburgh Business Day which is neither Saturday nor Sunday nor a bank holiday.
How do I trade?
To place an order the trader must call t2e trading line on 0844 800 9943 or apply on-line to use t2e’s interactive trading facility. To ensure that a reliable record of all orders given to Market Officials is maintained all telephone conversations using the dedicated telephone line will be recorded. The Exchange official will ask for the person's passcode and may ask a supplementary question to confirm the identity of the caller.
The trader shall provide the following information to the Market Operators:
- Whether s/he is a buyer or a seller;
- The number of tonnes which is the subject of the order, e.g. 100 tonnes;
- The commodity required, e.g. plastic or Category 1;
- The price s/he is willing to buy or sell at.
- If the trader is a representative, the participant company that the trader is representing.
What does the Price Page look like?
Live prices are displayed on the Price Page. In the PRN market there are seven price tables, one for each PRN commodity, aluminium, glass, paper, plastic, steel, wood, general recycling and recovery. In the WEN market there are thirteen price tables to reflect the thirteen different categories of WEEE in which evidence is available. The prices are displayed in a simple format as illustrated below.
Glass PRNs
Size | Buy Price | Sell Price | Size |
50 | £25.50 | £26.00 | 200 |
25 | £25.00 | £26.25 | 50 |
10 | £23.50 | £27.00 | 100 |
150 | £22.00 | £27.50 | 10 |
Size is quoted in tonnes. Prices are quoted per tonne (exclusive of VAT and fees).
Therefore if you are a buyer of Glass PRNs you are interested in the Exchange's 'Sell Price'. If you are a seller of Glass PRNs then you are interested in the Exchange's 'Buy Price'. The maximum number of tonnes that you can buy or sell at each price is displayed in the 'Size' column.
Example:
If you want to buy 300 tonnes of Glass PRNs, you can see that you can buy 200 tonnes at £26 per tonne, 50 tonnes at £26.25 per tonne and 50 tonnes at £27 per tonne.
All orders remain on the Orderbook until they are traded, expired or cancelled by the Market Participant. To cancel an order a trader simply contacts the Exchange official who will remove the price from the Internet page.
What happens after I trade?
If the market operator can match an offer to buy and an offer to sell a trade is struck and a Market Contract is created. Following execution of this Market Contract, t2e will publish details of the relevant market, the price paid and the volume, but not the identity of the parties.
If the official cannot make a trade then the order will remain on the price page on the Internet. This order can be traded at any time until it is removed by the authorised trader or expires.
Once a trade has been struck and no later than 5pm of the day of the trade, the Transaction Confirmation Notice will be faxed to the buyer and seller parties to the trade. The market operator will also try to contact both parties to the trade by telephone to confirm that a contract has been made.
The Transaction Confirmation Notice will confirm the quantity of evidence bought and sold, the price of the trade, the transaction consideration (number of tonnes bought or sold multiplied by the price per tonne + VAT) due from the buyer to the seller and the fees due to t2e plus VAT.
How do PRNs or WENs pass to the buyer? How does the seller get his money?
Trade day +1 trading day
By 12 Noon
t2e shall Direct Debit the buyer for the total value of the contract. The buyer shall ensure that the account which they have authorised t2e to make Direct Debits from has sufficient funds to cover the total value of the trade.
The money due will be the aggregate of the Transaction Consideration inclusive of VAT and the trading fee (inclusive of VAT) which is payable to The Environment Exchange for arranging the Market Transaction plus any other relevant fees (such as document issuing fees);
Trade day + 3 trading days
By 2PM
t2e will receive the Direct Debit or in some other way the Buyer will transfer the money due to the Environment Exchange bank account notified in the Transaction Confirmation Notice.
After 2PM
t2e will notify the seller that cleared funds have been received at t2e for the Transaction and the ultimate end receiver for the document to be issued. The seller should now issue the document and prior to authorisation e-mail it to settlements@t2e.co.uk to verify that all entries have been completed correctly.
t2e will either confirm that the pre-authorisation document has been completed correctly or request amendments. It will then confirm that the document may be authorised and that a copy of the authorised document should be e-mailed to settlements@t2e.co.uk
On receipt of the authorised document t2e shall notify the buyer that the document has been issued and transfer to the bank account of the seller, as specified by the Seller on its Application Form, the Transaction Consideration minus the trading fees payable by the seller. These funds will arrive with the seller within three working days of receipt of the authorised document.
t2e will not transfer any monies unless and until it has received the documents which the seller intends to deliver in performance of its obligations under the Market Transaction.
How will VAT be collected?
VAT is payable at the applicable rate by the Buying Market Participant in respect of the Transaction Consideration. For example, if I buy 10 tonnes at £25.00 per tonne then VAT will be due on the transaction consideration of £250, i.e. £43.75 VAT will be 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.
How much will it cost?
There is no joining fee for companies wanting to join t2e. There is an annual participation fee which is partially rebated so long as participants complete Direct Debit mandates or relevant surveys. It is also partially rebated against trading fees.
For information on trading fees please refer to Rules and Procedures (Fees - paragraph 21).
Buyers will also be charged a Document Issuing Fee of £5 per trade. This fee is credited directly to the seller of the document to cover the administrative cost of issuing the documents.