Secondary Trading – Create a trade proposal: OTC


Hello and welcome to this PRISMA tutorial. My name is Frederick and in this video I will
explain how to create an over the counter secondary trade proposal on the platform. After you logged into the platform, navigate
to “Transport” and then “Secondary trading”. In the top right corner, you can then start
the process to create your proposal. First, you need to select a network point
at which you want to trade capacity. Now, you need to select whether you want to
offer capacity for sale or request to buy capacity, and, if you selected a bundled network
point, if you want to trade a bundled contract or combine two unbundled capacity contracts. In step three you need to select the preferred
trading procedure, in this example, OTC – over the counter. An over the counter trade means two shippers
have bilaterally agreed on a trade and simply want to use the platform to register and publish
their bilateral trade. In an OTC trading procedure, there is just
one buyer and one seller; both parties are known to each other. Both price and the conditions of the trade
have been agreed upon by the parties in advance and cannot be changed after the deal was published
on the platform. Next, you need to decide for a transaction
type: Assignment or transfer of use. Transfer of use means that all financial obligations
towards the TSO remain with you. This means your trade counterparty will pay
you the agreed fees and you will pay the TSO directly, so you are basically subleasing
the capacity. An assignment on the other hand means that
you assign all rights and responsibilities including the financial obligations to your
counterparty. This involves more effort on the TSO side,
which needs to be taken into account regarding the trade lead times. We have a separate video about lead times
which I will link down below. Now, you need to select your counterparty. If they have agreed to have their name published
on the platform, you can simply find them in the counterparty drop-down menu. If not, you can still find them by entering
their EIC code in the second field. The counterparty email addresses need to be
entered to inform your counterparty that you created the OTC trade. After you have read the TSOs trading notifications,
you can select the capacity amount, the runtime, and enter your price for the capacity trade. This is what you are receiving or offering
as a premium on top of the fees of the underlying contracts that need to be payed to the TSOs
directly. Then you define the expiration date of the
offer. The expiration date needs to be before the
beginning of the minimum lead time of the TSOs to make a trade possible. As mentioned before, please refer to the separate
lead times video for more information. Now, you need to select the trading conditions
you want to apply to the trade. PRISMA provides an EFET standard contract,
but you can also upload your own conditions via the “New conditions” button. Pressing “Save & Continue” brings you
to step four, entering the capacity details. First, you can select where you acquired the
capacity. If you have bought it on the PRISMA platform,
either on the primary or the secondary market, you will be shown the available underlying
capacity contract IDs in the next field. Select one, and the remaining fields will
be automatically filled by the platform. If you choose to manually enter the capacity
information, you will need to fill all required fields manually. At the end of the page you can write a comment
to be shown with the offer. After pressing “Save & Continue”, you
will be prompted to accept the involved TSOs GTCs, and if you have not subscribed to PRISMA’s
automated REMIT reporting service are made aware of REMIT reporting regulation. Finally, you can either safe your proposal
as a draft for later use, or press “Save and submit” to publish the offer. Please be aware of the following: You can
always withdraw your offer, as long as no one has replied to it, but you cannot change
it at any point. If you made a mistake along the way, you would
have to start over with a new proposal. I hope I could provide you with helpful information,
but if you have any further questions regarding this topic, please do not hesitate to contact
the PRISMA Customer Care team. My name is Frederick and I wish you a pleasant
day.

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