FAQ

COMDAQ & TRADING RELATED

1. What is Comdaq?

2. What services does Comdaq provide?

3. How does the trading floor operate?

4. What is broker assisted trading?

5. What is counter party selection?

6. Is the contract valid?

7. What does the phone icon do?

8. How do i see details of a particular order?

9. I can see orders on the system but there is no Accept or Negotiate button?

10. Does Comdaq trade in all commodities?

11. Is there a registration fee for Comdaq?

12. What is the brokerage charged for trading on Comdaq?

13. How can I register on Comdaq?

14. I get the message "You have not been approved" What should I do?

15. What is Published Info?

16. What does Publishing section do?

17. What do you mean by reverse auction and forward auction?

18. What is the next step when the deal is settled?

19. How do you handle the payment?

20. How do you handle logistics?

21. In what currency does the transaction take place?

22. After the bid is settled what if the buyer of that product does not respond?

23. How can you publish your company information?

24. After the contract is made, Is it legally valid?

25. When will I be charged after the contract is made?

26. Who will be charged, Buyer or Seller ?

27. Is Comdaq authorized to raise NCND?

ANSWERS -COMDAQ & TRADING RELATED

1. What is Comdaq?

A: Comdaq, the Commodities Dealers Automated Quotation network is the operating system for the commodities industry providing a range of industry support tools; from an exchange , through specialist auctions and tenders including provision for broker involvement, to execution andsettlement.

2. What services does Comdaq provide?

A: The services provided by Comdaq are:
: Online Trading exchanges
: Auctions and tenders
: Phone brokerage
: Quotes systems
: Execution systems
: Swaps platforms
: Bespoke software
: Trading chat (Coming up shortly)
: Forte Escrow services(Coming up shortly)

3. How does the trading floor operate?

A: The buyer or seller puts up a trade on the Trading Floor. The traders who are interested in the deal contact the originator with a soft quote for further negotiations. The originator gets all the offers sent by various traders for the deal and then he / she has the option to choose the best of them. Once the originator chooses the suitable offer, the trader who has sent the offer can be contacted through the system for further negotiations and Final Contract. All the negotiations are done online and the Comdaq Administrators provide any assistance required by the parties during the same. When a contract is made, the counterparties are revealed and automatic emails are sent to the Responsible Person of both parties with complete details.Back to top

4. What is broker assisted trading?

We at Comdaq always strive to invent ways to make Trading easier. A step towards that is the introduction of BAT (Broker Assisted Trading). This concept was introduced for those traders who have the capacity to trade internationally for commodities but do not wish to deal directly for various reasons. For putting a BAT entry, the trader has to send us[Purnima Trasi] an official document providing all details of the offer / order. As soon as we receive the document, our expert brokers put that up on the Trading floor and negotiate with other traders till a suitable proposal is received. We have many years of brokerage experience in all agricultural commodities and specialist brokers working with us to make sure that a trade is completed professionally.

5. What is counter party selection?

In Comdaq Exchange, trading is conducted on an anonymous basis up to the point where the deal is confirmed. Parties find out whom the trade has been conducted with only when the trade has finalized and the contract has been generated from the system. This raises the issue of counter-party risk which is dealt with Counter Party Selection. It is the pre-approval of acceptable trading partners. Companies may pre-approve other members of the exchange for trade on one or all of the following bases: in store; afloat; shipment. If two counter parties have mutual approval, then their orders are 'live' in the system, and may be booked and / or negotiated at will. Should approval not be granted in both directions, the counter-parties will be able to view order details, but will not have the ability to trade them.

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6. Is the contract valid?

The contract which is created on the site is valid.

7. What does the phone icon do?

The phone icon is to indicate that the trade is a broker assisted. Clicking the icon shows details of the broker who is handling that deal. This enables the trader to send a mail indicating interest in that deal so broker can get back to the trader for further negotiations.

8. How do i see details of a particular order?

A preview of any order / offer can be seen by clicking the Ref. ID (left column) on the Orders Listing page after you log in to Comdaq Exchange.

9. I can see orders on the system but there is no Accept or Negotiate button?

This can happen due to the any of the following :
a> The party who has put the order may not be approved by you as a Counter Party or they may not have chosen you as a Counter Party.
b> The orders can be your own.
c> It can be a Broker Assisted Order / Offer.

10. Does Comdaq trade in all commodities?

Yes. As we are a trading exchange, we welcome traders dealing in all commodities.

11. Is there a registration fee for Comdaq?

No. Comdaq does not have any registration fees. The traders who register with Comdaq have to furnish certain documents as per the policy of approval.

12. What is the brokerage charged for trading on Comdaq?

At Comdaq, we believe in genuine and professional trading. We make sure that all the registered traders are genuine and up to international standards and then authorize them to trade on Comdaq. To do all this and to make sure that deals are closed in professional and timely manner, we need lot of resources which are supported by the brokerage we charge. The brokerage charged on Comdaq is US $0.50 / MT from both sides.

13. How can I register on Comdaq?

To register on Comdaq, please go to www.comdaq.com and click on REGISTRATION . Pls. fill in all the information on the forms and submit. After successful verification of furnished information, you will be authorized to trade on Comdaq.Back to top

14. I am getting permission denied message. What should I do?

You may get the following messages regarding the permission to trade on Comdaq. The messages and answers are as follows :

1) You or the company you have registered to has not been approved or have been denied permission to trade on the system.

> You may get this message due to any of the following reasons :

a) You have had a change of employment and your records are still associated with your old company. If you wish to update your details and register your new company please contact us.
b) There has been a security breach on your login name and to protect your information Comdaq administrators have denied entry to solve the issue.
c) You have been denied entry because you have not settled your account or you are black listed on the trading exchange.

2) You have been restricted by the responsible person of your company to trade on the system.

> You may get this message due to any of the following reasons :

A responsible person is someone who belongs to your company and manages all the your company registrations and user accounts with Comdaq. The Responsible person of your company can deny you entry into the system for the following reasons:
a) You have had a change of employment and your records are still associated with your old company. If you wish to update your details and register your new company please contact us.
b) There has been a security breach on your login name and to protect your information the Responsible person has denied entry to solve the issue. If you wish to resolve this issue please contact your responsible person.

3) You have not been approved by the responsible person of your company.

>If you have just registered as a new member on the Comdaq site, the responsible person of your Company should approve you before you commence trading on the site. The Responsible person of your company, normally gets notified of your registration and may be in the process of approving your registration. If the status of your registration does not change soon, please contact your Responsible person for details or contact Comdaq administrators for further assistance.

4) As you have not agreed to the Terms and Conditions for Comdaq, you will not be allowed to login. Should you wish to login again, please contact Comdaq administrators.
You do not have access to the Comdaq Trading site because you have not agreed to the terms and conditions for trading on the site. On your first login you would have seen the terms and conditions displayed for acceptance. If you wish to login to the site and resume your trading activity or you have any queries about terms and conditions or any other queries please contact the Comdaq administrators.Back to top

15. What is Published Info?

We source information related to various areas of interest for traders and that is provided in the form of Published Information. This information is provided by the traders who are registered with us for the benefit of Comdaq members. If you have any information which you would wish to submit on our site, we welcome you to register with us which will authorize you to submit the information. This information is available for all the visitors of Comdaq and you can contact Comdaq for further details about the same.

16. What does Publishing section do?

The publishing section is for registered members who wish to submit any form of information related to Trading which can be useful for other members and visitors of Comdaq.Back to top

17.What do you mean by reverse auction and forward auction?

Reverse auction is initiated by a buyer for purchase of the commodity they require at the best price without having to negotiate with each seller individually. The sellers offer the best price the item as per their capacity and the lowest offer gets the order. Reverse Auction means placing an enquiry for the items that is required. A registered member of Comdaq enters the details necessary for a seller to be able to place his offer.

The target price for a the commodity in reverse auction is generally the highest price that the buyer is willing to pay. This enables the buyer to locate the minimum offer without incurring any costs or efforts for finding and negotiating with suppliers. As soon as the order is published on Comdaq, all the other members registered for that commodity are informed through a mail. The interested members log on to the Comdaq Exchange and send their offers to the buyer. The sellers try to give the minimum offers to the order to grab the deal and hence the prices go down benefiting the buyer.

Forward auction is initiated by a seller for sale of the commodity which they can supply at the best price without having to negotiate with each buyer individually. The buyers quote the best price for that commodity as per their capacity and the highest quote gets the deal. Forward Auction means placing an order for commodity that the seller can supply. A registered member of Comdaq enters the details necessary for a buyer to be able to place the order. The minimum price for a the commodity in forward auction is generally the lowest price that the seller is willing accept for that commodity. This enables the seller to locate the maximum quote without incurring any costs or efforts for finding and negotiating with buyers. As soon as the offer is published on Comdaq, all the other members registered for that commodity are informed through a mail. The interested members log on to Comdaq Exchange and send their quotes to the seller.

The seller may have huge stocks of the commodity. But, there may not be such buyers who have the capacity to buy all the stocks. Hence the seller gives offers to sell smaller quantities to multiple buyers in order to get best prices rather than offering the whole quantity to a single buyer at lower price. In such cases the seller decides the smallest quantity that they wish to offer and quote that in the details so the buyers can respond accordingly.Back to top

18.What is the next step when the deal is settled?

Deal is settled in what sense?do you mean after LC is signed or after the price is accepted by both the buyer and seller

19.How do you handle the payment?

Presently the payments are through LCs from prime world bank, but we are integrating online payment with the help of Fortescrow Services.

20.How do you handle logistics?

It is the seller or the buyer who takes care of the logistics, but in all cases comdaq can offer logistic support through the logistics companies registered on to comdaq.

21.In what currency does the transaction take place?

We have provided the option of choosing a particular currency, which are US Dollars, Euro and British Pound. The option of choosing any other currency is also provided. Most of the international transactions are done in US Dollars.Back to top

22.After the bid is settled what if the buyer of that product does not respond?

We will locate another supplier.What do you mean by bid is settled, contract done, LC issued or is it just after the negotiation is finalised without any documentary support.

23.How can you publish your company information?

We have provided a sections called Comdaq Community which contains all the information about registered members. When you register with us, you will have to provide all the details about your company which will be published in Comdaq Community that can be seen by all members.Back to top

24.After the contract is made, Is it legally valid?

The contract which is created on the site is legally valid in all the court of law as mentioned in the contract in the respective countries.

25.When will I be charged after the contract is made?

After the LC amount is realised in the seller's bank.

26.Who will be charged, Buyer or Seller ?

Depends, usually it's the seller.

27.Is Comdaq authorized to raise NCND?

Yes. Back to top

GENERAL

1. I am not a trader, can i still register on Comdaq?

2. How can I work with Comdaq?

3. How can I advertise with Comdaq?

4. Can I get price quotes for services other than trading on Comdaq?