Exchange Operations
Warehouse
The commodity trading is a platform for matching buyers and sellers of mineral commodities. The commodity trading facilitates the buying and selling of commodities through warehouse receipts. The underlying commodity will be stored at a registered and approved warehouse and is available for inspection any time.
Implementation of the Warehouse Receipt System
The VFEX is officially authorized to facilitate the trading of commodities under the Warehouse Receipt System (WRS) in accordance with the Zimbabwe Act.
The WRS is a framework that allows commodities to be used as collateral for financing (Inventory Credit). A Warehouse Receipt is issued by an authorized party, certifying the deposit of commodities, which are then securely held until the depositor or a designated buyer claims them.
VFEX operates a Central Depository or Registry for warehouse receipts, ensuring the quality and quantity of the commodities are guaranteed.
Automated Traded System
The VFEX operates a secure, fully automated electronic trading platform, featuring a central depository for warehouse receipts. This system allows for the electronic management and settlement of all securities traded on the Exchange.
In VFEX’s electronic spot trading, transactions for buying and selling are conducted in standard lot sizes of predefined commodity grades within the trading system.
Clearing and Settlement Process
The VFEX depository manages the minerals trading process from start to finish, typically taking about a week. After buyers and sellers agree on a trade, the mineral’s quality and availability are verified. The buyer has the option to inspect the mineral before finalizing the purchase. Once confirmed, arrangements are made to deliver the mineral. Finally, payment is made, and the mineral is delivered to the buyer.