Uzbekistan's Commodity & Raw Materials Exchange launches trading on forward contracts
BAKU, Azerbaijan, Apr. 3
By Ilkin Seyfaddini – Trend:
For the first time in the history of the Uzbek Republican Commodity and Raw Materials Exchange, forward trading has started, Trend reports with reference to UZEX.
A forward contract is a customizeable derivative contract between two parties to buy or sell an asset at a specified price on a future date.
As of April 1, forward deals on sale of sugar in amount of 27.5 billion soum ($2.8 million) were concluded. In accordance with the contract terms, the term of delivery of goods is 60 days.
Forward deals provide commodity producers with an opportunity to forecast correctly and plan their activities more efficiently.
Uzbek Republican Commodity and Raw Materials Exchange in the future to continue work on introduction of forward contracts in other commodity markets, the message said.
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