ROMANIAN COMMODITY EXCHANGE

OVERVIEW OF ROMANIA
SALIENT FEATURES GDP : $ 169.3 billion Currency : Romanian Leu Capital: Bucharest 8th Largest country of European Union by Area 7th largest populated country in European Union Continental Climate due to proximity to sea Largest Import partners: Italy ( 12%), Germany(17%), Hungary (9%) Largest Export Partners: Italy ( 12%), Germany(17%), France (8%) Imports substantial quantity of grain GEOGRAPHICAL LOCATION OF ROMANIA TOP 5 PRODUCED AGRI COMMODITIES ( in 000 Kg) AGRI DEPENDENCE OF ROMANIA vis--vis Peer Countries

TRADE STATISTICS OF ROMANIA

Contribution to Imports Contribution to Exports

12% 3% 17%

7%
13%
Iron Oils Finished Goods Agri Products Others Metals

3% 5% 9%

10%
Iron

10%

Oils Finished Goods Agri Products Others Metals Chemicals

15%

10%

38%

Chemicals

48%

CHARACTERISTICS OF ROMANIAN AGRICULTURAL TRADE

Romania served as breadbasket to Western and Central Europe in the 19th century

Of Romania s total area, 28% is covered by forest and more than 60% is used for agriculture Share of Agriculture in employment is 30% but only 12% in the GDP Mechanization (Use of tractors) is relatively poor compared to other European nations.

Agri-food trade balance is negative (net importer) but its improving because of positive trade balance in cereals.

ROMANIAS TOP AGRICULTURE PRODUCTS

High-value agriculture trade is mainly in livestock, dairy products, horticulture products including fruit and vegetables, berries and spices, mushrooms and wine The quality standards of Romanian Agri-products started were improved as a part of reforms to gain accession to the EU Contract farming picked up subsequently with the heavy investments being made by companies like Smithfield Foods, Cargill, Bunge, Glencore, Lactalis and Meggle

HISTORY OF ROMANIAN COMMODITY EXCHANGE

Nov 1992: Official opening of RCE

DEC 97 : witnesses sharp increase in turn over

Nov 99 : Introduces future contract in EURO/RCE

July 94: launch of spot contracts

Dec 95 : Trading of 1st forward contract

Jan 00 : Introduces interest rate furtures

July 06: Initiated cash market

NETWORK OF ROMANIAN COMMODITY EXCHANGE

TYPES OF MARKETS ON RCE

CASH MARKET Started in 2006 Transactions performed by open outcry on the floor or electronic trading Can only be accessed through brokerage companies AUCTION MARKET Started in 1992 Supports both spot and forward market Mainly executed via trading floors RECIEVABLES MARKET Recievables are traded via dutch auction open outcry method

SEGMENTATION OF TRADING FLOORS

Financial Market Floor Launched in November 1998 Highest volume in Dollar RCE contract Oil Floor Traded commodities are Oil, Gasoline, fuel oil, heavy fuel oil Grains Floor Agricultural products such as wheat, corn, rye are traded

FUNGIBLE COMMODITIES TRADED ON RCE

Classified list of fungible commodities are as follows : Farm products and agro product products Food industry products, beverages and tobacco Live animals and animal products Forest products Power products of the mining industry Non-Power products of the mining industry Products of the metal working industry Products of the textile industry Products of the pulp and paper industry Products obtained by refining oil Products of the chemical industry Rubber industry Non-metallic ore products

TRADE MECHANISM IN CASH MARKET ON RCE

CONTRACT SPECIFICATIONS ON RCE

Particulars

Name
Ring Asset Contract date Settlment date Quantity

Details Energy Lighting Peatra Nimt Power Electric power 7-Sep-13 7-Oct-13 3400 Mwh

Particulars Name Ring Asset Contract date Settlment date Quantity

Details 513/213 gas oil Petroleum products Gas oil 9-Sep-13 9-Oct-13 55000 ltrs

Particulars Name Ring Asset Contract date Settlment date Quantity

Details 499/2013 Gas Roman Natural gas Natural gas 10-Aug-13 10-Oct-13 4100 cubic meter

CONTRACT SPECIFICATIONS ON RCE

Particulars

Name
Ring Asset Contract date Settlment date Quantity

Details Energy Lighting Peatra Nimt Power Electric power 7-Sep-13 7-Oct-13 3400 Mwh

Particulars Name Ring Asset Contract date Settlment date

Details 499/2013 Gas Roman Natural gas Natural gas 10-Aug-13 10-Oct-13 Particulars Name Ring Asset Contract date Settlment date Quantity 55000 ltrs 513/213 gas oil Petroleum products Gas oil 9-Sep-13 9-Oct-13 Details

Quantity
Particulars Particulars Name Tick Size Trading Unit Delivery Last Trading Day EURO/RCE 1 ROL/Eur 1000 Euro Cash 3rd Tuesday of the month Ring Asset Details Name

4100 cubic meter

Details 423/2013 Titanium Ferro general prouducts ores

Contract date
Settlment date Quantity

22-Aug-13
22-Oct-13 103582 Kg

Role of Romanian Government

Endorsement by the Romanian Government of the Government Decision No. 54/ February 3, 1993 "regarding the price settlement of the Exchange transactions which prices are to be negotiated under the supervision of the local central public administration authorities -- RCE integration within the economic activity in 1993 Issuance of the first legal framework on commodity exchange field: "Ordinance regarding the Commodity Exchanges", no. 69/1997, -- Commodity Exchange development in 1997 Law no. 357/2005 granted the commodities exchanges the fundamental right to manage markets of public interest by self-regulatory measures -- Regulated the operation of Romanian commodities exchanges under the authority of the Steering Committee of the Chamber of Commerce and Industry of Romania in 2006