Frequently Asked Questions
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What is a metal brand?
What is brand registration?
What is a Commodity Exchange / Market?
What is a Futures contract?
What is Physical Delivery?
What are the Benefits of brand registration?
Where can I Register my brand?
What is the Registration process?
How long does it take to obtain a brand listing?
When can I start the Registration process?
Can I register on more than one Exchange / Market?
Why does the metal brand need to be tested?
What is the procedure for testing?
How do I know my Brand has been registered?
What is a metal brand?
A metal brand is a mark that exclusively identifies the producer as the commercial source of the metal.
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What is brand registration?
Brand Registration is the formal listing of a producer's specific metal brand by a Commodity Exchange / Market. It is necessary as buyers and sellers of approved metal brands need to have the confidence of the quality of the material they are receiving or delivering. This is because the material may need to be "physically delivered" to an approved warehouse under the terms of a Futures contract. Brand registration upholds the integrity of the Exchange's / Market's physical delivery mechanism.
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What is a Commodity Exchange / Market?
A commodities exchange / market is an exchange / market where various commodities and derivatives products are traded. Most commodity markets across the world trade in agricultural products and other raw materials (like wheat, barley, sugar, maize, cotton, cocoa, coffee, milk products, pork bellies, oil, metals.) and contracts based on them. These contracts can include spot prices, forwards, futures and options on futures.
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What is a Futures contract?
An agreement to buy or sell a fixed amount of metal for delivery on a fixed future date at a price agreed today.
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What is Physical Delivery?
Most metals futures contracts that are entered into with an Exchange / Market are closed out on the fixed future date and the underlying physical delivery of the metal to the buyer or seller does not occur. Should physical delivery be required then an approved metal brand must be delivered into or out of an Exchange / Market approved warehouse in order to fulfil the requirements of the metal contract entered into.
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What are the Benefits of brand registration?
The benefits of a brand listing are considerable:
- Access to a global market of ready buyers
- A producer who is registered can improve cashflow and liquidity by having the option to sell their metal production to an Exchange / Market approved warehouse. This option is very useful when there is little demand for their production in the market place, particularly during times of recession.
- Provides the opportunity for inventory financing and trade finance opportunities.
- Obtains worldwide acceptability as to the quality of the listed metal brand; a definite benefit when it comes to brand marketing.
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Where can I Register my brand?
The Exchanges / Markets where Producers can list their metal brand include:
- CME Group - NYMEX - COMEX
- The Dubai Gold and Commodities Exchange - DGCX
- The London Bullion Market Association - LBMA
- The London Metal Exchange - LME
- The Shanghai Futures Exchange - SHFE
- The Tokyo Commodities Exchange - TOCOM
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What is the Registration process?
A Producer will generally follow the steps below to obtain a brand listing:
- Review metal brand listing guidelines and procedures
- Obtains the services of an Exchange Member (if applicable)
- Dossier collation and submission
- Material inspection / testing
- Test results submission
- Exchange / Market decision
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How long does it take to obtain a brand listing?
The length of time to complete the registration and obtain the brand listing will vary depending on the metal and the Exchange / Market that metal brand is to be listed on.
It is important for Producers to consider at the outset the length of time required to achieve the brand listing. This will ensure all expectations and commitments are met in line with expectations.
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When can I start the Registration process?
The registration process can commence as soon as the relevant documentation is available to meet the minimum listing requirements of the Exchange / Market.
The length of time to complete the registration and obtain the brand listing will vary depending on the metal and the Exchange / Market that metal brand is to be listed on. It is important for Producers to consider at the outset the registration time to ensure their metal brand is listed in line with their expectation as to when they wish to obtain the brand listing.
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Can I register on more than one Exchange / Market?
Yes, as long as your brand documentation meets the rules and procedures of the particular Exchange / Market on which you wish to be listed.
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Why does the metal brand need to be tested?
The metal brand is tested to validate the metal's properties. This confirms that the metal meets the quality specification set down by the Exchange or Market in the Contract specification.
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What is the procedure for testing?
A producer will deliver a specificied quantity of material to industry users who will test the metal in accordance with the Exchange's / markets instructions. There may a requirement for additional sampling and analysis.
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How do I know my Brand has been registered?
When brand approval is given the Exchange or Market issue a notice which publicly confirms that the brand is listed.
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