Basic information

• Exchange – Towarowa Giełda Energii S.A. (TGE), which organizes trading in admitted commodities and organizes and supervises the Authorized Warehouse System (SMA).
• Exchange Clearing House / Clearing House – Exchange Clearing House run by the Izba Rozliczeniowa Giełd Towarowych S.A. (IRGiT), which organizes and manages the transaction security system and conducts clearing and financial settlement of transactions concluded on the Exchange with its members.
• Authorized Warehouses – grain warehouses, which, after being allowed by the Exchange to participate in the Authorized Warehouse System, in accordance with the Regulations for Participation in the Authorized Warehouse System, are responsible for verifying and maintaining the quality of the goods placed on the Exchange and carry out physical settlement of transactions concluded on the Exchange, enabling the physical flow of goods from the seller to the buyer.
• Trading participants / contractors – entities concluding transactions on Agricultural Exchange Market on their own account, including entities having the status of an Exchange Member admitted to operate on Agricultural Exchange Market , and persons acting through the Exchange Members.
• Brokerage houses / brokers – professional market participants with the status of Exchange Members acting as intermediaries enabling the conclusion and settlement of exchange transactions of trading participants who are not Exchange Members.
• Appeal laboratories – professional laboratories indicated by the Exchange, whose role is to conduct appeal tests at the request of trading participants, in order to decide whether a given batch of goods admitted to trading on the Exchange meets the quality standards set by the Exchange.
• Control and authorization unit – an entity selected by the Exchange that verifies the fulfillment of technical and organizational requirements by warehouses applying for the status of Authorized Warehouse or already having such status.

Transactions on Agricultural Exchange Market may be entered into by all entities that have been admitted to operate on the exchange market directly as Exchange Members or as customers of Exchange Members.

• Only entities indicated in the Commodity Exchanges Act that meet the requirements specified by the Exchange in the Trading Rules for the Commodities Market of TGE S.A. may become Exchange Members. In order to be allowed to operate on Agricultural Exchange Market , they must additionally obtain the status of a Member of the Exchange Clearing House or conclude an agreement with a Member of the Exchange Clearing House regarding the settlement of their transactions. Exchange Members act towards the Exchange as parties to exchange transactions and are fully liable towards it for orders placed and transactions entered into, irrespective of whether they are carried out for own account or for clients. Members of the Exchange are usually professional entities involved in trading in financial and commodity instruments, e.g. brokerage houses, commodity brokerage houses or investment companies.
• Persons who do not want or cannot obtain the status of Exchange Member have the option of concluding transactions on Agricultural Exchange Market via an Exchange Member admitted to Agricultural Exchange Market , providing brokerage services (brokerage house). In this case, it is only required to conclude a contract for keeping an exchange commodity account and the associated cash account with the selected Exchange Member. The brokerage house represents its clients in all relations with the Stock Exchange, provides them with means of communication / tools enabling placing orders and access to market information, and conducts financial settlements in the scope of collateral and transactions concluded on the client's account.

The Exchange conducts trading on Agricultural Exchange Market, in:

• the single-price system, a trading system in which all exchange transactions in a given instrument are concluded in a given session at the same price which is determined by the Exchange according to a specific algorithm. Sessions are conducted once a week for standardized contracts on goods stored by market participants in the Authorized Warehouses designated by the Exchange (that provide storage services);
• the auction system which consists in conducting ad hoc sale auctions by the Exchange at the seller's request, for sale of goods by market participants having their own Authorized Warehouses (that do not provide storage services).

The Exchange conducts trading in wheat produced in the European Union, in three quality classes, for which standards are defined in the Annex to the Rules of Agricultural Exchange Market . Wheat traded on the Exchange should meet in particular the following requirements:

• Healthy, clean, ripe, well-developed grains with typical wheat color;
• Grain free from unusual odors and live pests (including mites) regardless of their stage of development;
• Content of undesirable substances in grain not exceeding the maximum levels specified in EU regulations, including in Commission Regulation (EC) No. 1881/2006;
• Level of radioactivity in the grain not exceeding the level specified in Council Regulation (EC) No 733/2008.

Limit values of quality parameters for individual classes:

The Authorized Warehouse that introduces the given batch of goods to exchange trading by registering it in the e-RTRS system is responsible for confirming, then maintaining the compliance of the goods with the quality standards set by the Exchange. To this end, the Authorized Warehouse assesses the quality of grain and determines its parameters, on the basis of which it determines the class of the goods. At the request of the owner of the goods, upon collection from the Authorized Warehouse, verification is carried out whether the issued goods meet the quality requirements appropriate for a given class. In the event of a dispute between the owner and the Authorized Warehouse regarding the assessment of the quality of the goods, an examination in the Appeal Laboratory may be carried out on the basis of the appeal samples taken. The result of such examination is final and conclusive for the parties.

e-RTRS is an auxiliary system of the Exchange, whose main role is to keep records of goods traded on the Exchange and trading participants (contractors). The system contains information about the status of goods stored by trading participants in Authorized Warehouses by owner, type of product, its class and place of storage. The system reflects all receipts and deliveries of goods to / from Authorized Warehouses and changes in goods ownership resulting from concluded exchange transactions. The Exchange maintains a separate e-RTRS account for each trading participant and assigns it a unique identification code.

The Exchange provides access to the system to:

• Authorized Warehouses so that they can keep records of receipts and deliveries of commodities traded on stock exchange and can also verify the owners' rights to collect the goods;
• brokerage houses so that they can verify sales orders placed by their customers in respect of their coverage in goods;
• trading participants who, in addition to viewing data on their own goods and transactions, can also obtain information about Authorized Warehouses, such as their location, availability of warehouse storage space or currently stored goods intended for exchange trading.

e-RTRS is not meant to be a system for placing orders and concluding transactions. To this end, the Exchange provides its Members with a separate trading system.

In the single-price system on Agricultural Exchange Market standardized contracts (instruments) are traded for goods stored by market participants in the Authorized Warehouses providing storage services indicated by the Stock Exchange. The trading is conducted for wheat of class B and C once a week (every working Wednesday), in accordance with the schedule published by the Exchange for each listed instrument. All exchange transactions for a given instrument are concluded at a given session at the same price, determined by the Exchange according to a specific algorithm based on placed buy and sell orders. This formula ensures that the market transaction price is determined in an objective and transparent manner that reflects the actual supply and demand for a given commodity. The single-price auction system enables market participants that do not have their own Authorized Warehouses to sell their goods on the exchange, and on the other hand  gives buyers access to large standardized batches of goods stored in one place.

Only goods stored in Authorized Warehouses indicated by the Stock Exchange and operated by SMA Participants providing storage services may be traded the single-price auction system. Such goods must be accepted into the Authorized Warehouse and registered in the e-RTRS system no later than on the day preceding the given trading session. Before accepting and recording a given batch of goods in e-RTRS, the warehouse verifies its quantity and quality and, on this basis, classifies the goods (assignment to class B or C). Goods coming from different owners are mixed within a given quality class and stored jointly at the Authorized Warehouse. From the moment of accepting the goods, the Authorized Warehouse bears full responsibility for their quantity and quality (compliance with the specification of the given class) towards each owner. The list of Authorized Warehouses accepting goods for trading in the single-price auction system is published on the Exchange's website.

In order to clearly determine the place of storage of the goods being traded, the Exchange, under the single-price system, introduces separate instruments to trading for each Authorized Warehouse providing storage services. For each such warehouse, two separate instruments are recorded - one for wheat class B and one for class C. All parameters of listed instruments within the given wheat class are identical except for the place where the goods are stored, for which a specific Authorized Warehouse is assigned to each instrument. Due to the difference in the location of the goods, individual instruments cannot be treated interchangeably and their quotations (rates) may differ significantly.

For each of the listed instruments, the Exchange publishes in the attachment to the Agricultural Exchange Market Rules a specification containing the following information about the instrument:

The Exchange conducts trading in the single-price system every Wednesday. In order to avoid overlapping of quotations of instruments assigned to Authorized Warehouses located close to each other, the instruments are divided into groups, which are listed in separate sessions. For example, if two Authorized Warehouses operate in one voivodship, quotations of the instrument associated with the first of them are conducted at the first session on a given day, while for an instrument associated with the second warehouse at the second session on the same day. Sessions are conducted according to a schedule published by the Exchange, with the assignment of individual instruments to groups specified in the instrument specification.

Sell orders submitted during the single-price session are collateralized by goods belonging to the market participant giving the order, stored in the Authorized Warehouse assigned to the instrument to which the given order relates and registered by the Warehouse in the e-RTRS system. Due to the assignment of instruments to specific Authorized Warehouses, goods of the same class, but deposited in a different warehouse than the Authorized Warehouse indicated in the specification of a given instrument cannot secure the order concerning this instrument.

A market participant interested in purchasing goods during a given trading session in the single-price auction system is required to provide a financial security (transaction deposit) covering fully the buy orders that he intends to submit during the session. The amount of security required is equal to the product of the quantity of the goods and the price limit indicated in the order, plus VAT. Security should be lodged not later than on the day preceding the session.

Orders can be submitted, modified and withdrawn on the day of the session during the order acceptance phase specified in the published session schedule. Orders are valid for the end of the trading period on a given day and do not pass to the next session. The order should specify in particular:

• designation (code) of the instrument to which the order relates;
• type of order: buy or sell
• the number of instruments that are the subject of the order, with one instrument representing 25 tonnes of wheat;
• price limit, that is, in the case of buy orders, the maximum offered purchase price (net), and in the case of sell orders, the minimum sale price (net) expressed in PLN for 1 ton of wheat with an accuracy of PLN 0.01;
• designation of the entity (Exchange Member) submitting the order;
• the unique e-RTRS code of the trading participant for whom the order is being placed.

Orders placed on the market and accepted into the order book are public, i.e. market participants have access to the order book presenting the volumes and price limits of active orders. In addition, the Exchange publishes the theoretical opening price, i.e. the single price, which could be determined on the basis of currently placed orders, and the theoretical opening volume, i.e. the volume of transactions that can be carried out on the basis of currently submitted orders. Buy orders are subject to verification for coverage in the transaction deposit, sell orders for coverage in the goods.

After the order acceptance phase is finished, the Exchange IT system sets a single price based on all active orders (so-called fixing) in accordance with a defined algorithm. Then the orders are executed with priority of order price and its time of submission, according to the following rules:

• sell orders placed with the price limit below the single price and buy orders submitted with the price limit above the single price are filled in full,
• no sell orders placed with the price limit above the single price or buy orders submitted with the price limit below the single price are filled,
• buy and sell orders placed with the price limit equal to the single price may be executed in full, in part or not at all, whereas in the case of orders with the price equal to the single price, the order of execution will be determined by the time of order acceptance.

All transactions resulting from filled orders are concluded at the same rate, i.e. the single price.

Example:

The following orders for the instrument PSZ_B_WMA-01 (sorted by price and time of submission) were submitted during a single-price auction session:

On the basis of the orders placed, the single price was set at PLN 715 PLN/t. 

The following orders were filled at the single price of 715 PLN/t:

• In full buy order K1 with a price limit higher than the single price; 
• In full sell orders S1 and S2 with price limits lower than the single price; 
• In part (75 t out of 100 t) buy order K2 with a price limit equal to the single price.

Buy orders K3 and K4 with the price limit lower than the single price and sell orders S3 and S4 with price limits higher than the single price were not carried out.

The total volume of concluded transactions was 175 t.

In order to determine the single price in the Exchange IT system, all active buy orders are sorted from the highest to the lowest price limit and sell orders from the lowest to the highest price limit, and then the possible transaction volumes for each price are calculated. The single price is determined by the price level at which:

• volume of transactions in the instrument is maximized and
• the difference between the cumulated volume of sell orders and buy orders is minimized.

Example:

The following orders for the instrument PSZ_B_WMA-01 (sorted by price and time of submission) were submitted during a single-price auction session:

The list of orders and accumulated volumes:

The maximum trading volume (175 t) can be realized at both PLN 705 zł/t and PLN 715 zł/t. However, at the price of 715 PLN zł/t, the difference between the cumulated volume in buy and sell orders is smaller, therefore the single price is set at 715 zł/t.

After the end of the session, the Exchange updates the holdings of goods in e-RTRS in accordance with the concluded transactions and provides relevant information to Authorized Warehouses storing the goods subject to the concluded transactions. From the moment of registration on the e-RTRS account, the buyer obtains the right to dispose of the purchased goods as its owner. At the same time, the Authorized Warehouse is obliged to store the goods for its benefit and cost, preserving their quality and quantity until collection, in accordance with the conditions set out in the Rules of Participation in the Authorized Warehouses System.

Payment for the goods purchased at the session, in the amount equal to the product of the quantity of the purchased goods and the transaction price, increased by VAT, is charged to the buyer's account on the first business day after the session, and then transferred to the seller's account. The settlement is unconditional and independent of the settlement in the goods - the transfer of payment to the seller is not conditioned by the earlier collection of goods from the Authorized Warehouse by the buyer. The settlement is documented with sales invoices.

The goods can be picked up from the Authorized Warehouse at a time agreed between the parties, with the obligation of the Warehouse to enable the buyer to collect the goods, in a quantity and quality consistent with the concluded transaction and records in e-RTRS, within 21 calendar days after the session. For collection, the buyer should present in the Authorized Warehouse a document confirming the possession of the goods to be collected, taken from the e-RTRS system. At the request of the buyer, the Warehouse is obliged to carry out in its laboratory free verification of compliance of the provided goods with the standards for a given class. Loading the goods onto the buyer's means of transport is also free.

Each side of a transaction concluded in the single-price system shall bear transaction costs, which include:

• transaction fees charged by the Exchange and settlement fees charged by the Clearing House, proportional to the volume of transactions concluded,
• brokerage commissions, proportional to the volume of transactions concluded, collected by brokerage houses through which counterparties operate.

In addition, the seller bears all the costs associated with entering the goods into an Authorized Warehouse, including transport, receipt, storage until the time of sale and issue, and the buyer the storage costs from the day following the conclusion of the transaction to the day of collection of the goods.

The level of transaction and clearing fees is set out in price lists published on the Exchange and the Clearing House websites, respectively, with the reservation that during the pilot period, i.e. until the end of August 2020, the Exchange and the Clearing House do not charge the abovementioned fees for operating on Agricultural Exchange Market .

The level of brokerage fees is specified separately in the price lists of brokerage houses.

The level of fees charged by Authorized Warehouses is specified in the price list of a given Warehouse, and it may not exceed the maximum levels set by the Exchange.

The auction system allows the sale of goods on the Exchange by market participants who have their own Authorized Warehouse, as Participants of the Authorized Warehouse System not providing storage services. Auctions are organized and carried out on an ad-hoc basis at the bidder's request for a minimum of 250 tonnes of wheat of class A, B or C. Information about each auction is published on the Exchange's website and in the e-RTRS system, thanks to which it reaches a wide group of potential buyers. All interested Agricultural Exchange Market participants have the option of participating in the auction as buyers, provided that adequate collateral is provided. The auctions are classified - the minimum sale price and submitted buy orders are not published by the Exchange during the auction.

Only goods stored in an Authorized Warehouse of an SMA Participant who does not provide storage services can be offered at the auction. The SMA Participant offers the goods on their own behalf. Only goods of the same type and class (wheat of class A, B or C) may be offered in one auction, in a quantity being a multiple of 25 tonnes, but not less than 250 tonnes. The goods intended for the auction are entered in the e-RTRS by the Authorized Warehouse of the offerer. The offerer bears full responsibility towards the auction participants for the compliance of the offered goods as regards quantity and quality with the information contained in the application to open the auction.

A request to open an auction may be submitted by an Exchange Member, on its own behalf or on behalf of its client being the offeror, using the form attached to the Agricultural Exchange Market Rules. The application should be sent to the Exchange at least 7 business days before the proposed auction date. It may be withdrawn at the latest two business days before the auction date. The application must specify in particular: the offeror, type and class of the offered goods, their quantity, the Authorized Warehouse in which they are stored, the offered price limit (minimum selling price) and the proposed date of the auction.

The quantity and quality of the goods offered at the auction are secured by a security deposit determined by the Clearing House, which the offeror must pay no later than two business days before the auction date. The amount of the security deposit depends on the volume of the auction (the amount of offered goods) and the unit value of the security deposit specified by the Clearing House. If the auction is not resolved, the security deposit will be returned on the first business day after the auction. In the case of selling only part of the goods offered at the auction, the part of the security deposit corresponding to the unsold goods will be returned on the first business day after the auction. In other cases, the bid security will be refunded on the 21st calendar day after the auction, provided that the goods are properly settled. In the absence of proper settlement in the goods for reasons attributable to the seller, the deposit will be forfeited to the buyer of the goods.

A market participant interested in purchasing goods at an auction is required to provide a financial security (transaction deposit) covering fully the buy orders that he intends to submit during the auction. The amount of security required is equal to the product of the quantity of the goods and the price limit indicated in the order, plus VAT. Security should be lodged not later than on the day preceding the auction.

• designation (code) of the instrument to which the order relates;
• the number of instruments that are the subject of the order, with the reservation that one order may cover one instrument representing 25 tonnes of wheat (to buy more grain several orders must be submitted);
• price limit, that is the maximum offered price (net) expressed in PLN for 1 ton of wheat;
• designation of the entity (Exchange Member) submitting the order;
• the unique e-RTRS code of the trading participant for whom the order is being placed.

The auction is resolved after the order acceptance phase has been completed and the offeror's sell order has been entered by the Exchange. Buy orders placed with a price limit equal to or higher than the price limit in the offeror's sell order are carried out in accordance with price priority and time of submission, i.e. in order from orders with the highest price limit to orders with the lowest price limit, and in the case of the same price limits , with priority for orders placed earlier, until the offered goods pool is exhausted. Execution of the order means the conclusion of a transaction by the person placing the order at a transaction price equal to the price limit specified in the given buy order.

In the event that no buy order has been submitted with a price limit equal to or higher than the selling price, the auction shall not be settled and no transaction will be concluded.

250 tons of wheat of class A were offered at the auction at a minimum price of 710 PLN/t.

During the auction the following orders were placed (sorted by price):

Auction results:

K1 bought 75 tons of wheat at 720 PLN/tnet - full execution of the order.
K2 bought 175 tonnes of wheat at 715 PLN/t net - partial execution of the order.
Order K3 was not completed due to the exhaustion of the goods pool.
Order K4 was not carried out due to the lower price than the minimum sell price.
The total volume of concluded transactions was 250 tons.

After the end of the session, the Exchange updates the holdings of goods in e-RTRS in accordance with the concluded transactions and provides relevant information to Authorized Warehouses storing the goods subject to the concluded transactions. From the moment of registration on the e-RTRS account, the buyer obtains the right to dispose of the purchased goods as its owner. At the same time, the Authorized Warehouse is obliged to store the goods for its benefit and cost, preserving their quality and quantity until collection, in accordance with the conditions set out in the Rules of Participation in the Authorized Warehouses System.

Payment for the goods purchased at an auction, equal to the product of the quantity of the purchased goods and the transaction price, plus VAT, is charged to the buyer's account on the first business day after the auction. Transfer of funds to the account of the seller takes place on the 21st calendar day after the auction, provided that within 18 days of the auction, the Exchange has not received from the buyer a properly documented notification of the failure of the seller to make the goods available in accordance with the terms of the transaction. In this case, the funds taken from the buyer's account for payment for the goods are refundable in full, and in addition the security deposit will be forfeited to the buyer of the goods in a proportion corresponding to unsettled transactions.

The goods can be picked up from the Authorized Warehouse at a time agreed between the parties, with the obligation of the Warehouse to enable the buyer to collect the goods in a quantity and quality consistent with the concluded transaction and records in e-RTRS, within 21 calendar days after the auction. Both storage of goods for 21 days from the date of the auction and loading are free for the buyer. For collection, the buyer should present in the Authorized Warehouse a document confirming the possession of the goods to be collected, taken from the e-RTRS system. At the request of the buyer, the Warehouse is obliged to verify, free of charge, the compliance of the goods made available with the standards for a given class in its own laboratory or, if it does not have one, in the appropriate external laboratory whose services it uses.

If the seller has not made available to the buyer the goods in accordance with the concluded transaction in terms of quality or quantity and the manner of compensation for the lack of quality or quantity has not been agreed between the parties, the buyer should submit his reservations directly to the Exchange before the expiry of 18 calendar days from the auction on the form constituting attachment to the Agricultural Exchange Market Regulations. If the reservations concern the quality of the goods, their validity should be confirmed by an examination in the Appeal Laboratory before the notification, and the examination certificate should be attached to the notification. If the reservations are deemed justified, the buyer will withdraw from the transaction, resulting in a refund of the payment for the goods, the takeover of the security deposit and a return transfer of ownership of the goods in e-RTRS to the seller.

Each side of a transaction concluded at an auction shall bear transaction costs, which include:

• transaction fees charged by the Exchange and settlement fees charged by the Clearing House, proportional to the volume of transactions concluded,
• brokerage commissions, proportional to the volume of transactions concluded, collected by brokerage houses through which counterparties operate.:

In addition, the offeror pays a fee on the application to open the auction.

The level of transaction, clearing and auction fees for opening auctions is specified in the price lists published on the Exchange and the Chamber's websites respectively, whereas during the pilot period, i.e. until the end of August 2020, the Exchange and the Chamber do not charge the abovementioned fees for operating on Agricultural Exchange Market.

The level of brokerage fees is specified separately in the price lists of brokerage houses.

The Authorized Warehouses System (SMA) is a network of warehouses adapted to store grains, organized by the Exchange in order to ensure the possibility of storing commodities traded on the Exchange and conducting settlements in the goods of transactions concluded on Agricultural Exchange Market . It is based on warehouses that meet the specialized organizational and technical requirements defined by the Exchange, ensuring uniform handling of goods that are traded on the Exchange during their acceptance, storage and issue from the warehouse. The participation of warehouses in SMA is voluntary, however it requires prior conclusion of an appropriate agreement with the Exchange under the conditions resulting from the Rules of Participation in the Authorized Warehouses System. The Exchange supervises SMA but it is not liable to trading participants for goods stored in Authorized Warehouses - only the SMA participant (Authorized Warehouses) are responsible for all claims in this respect.

The Authorized Warehouse carries out and is responsible for the physical settlement of transactions concluded on Agricultural Exchange Market . His basic duties include:

• verification of the quality of the goods introduced to exchange trading and accepting only goods that comply with the standards set by the Exchange,
• keeping records in e-RTRS for goods introduced to exchange trading, in compliance with the actual holding with respect to quantity and qualitaty,
• storage in good condition of the goods being traded on the exchange,
• performing the Exchange's instructions regarding the physical settlement of exchange transactions.

From the moment the goods are accepted for trading, the Authorized Warehouse bears full responsibility towards the owners for their quantity and quality during further storage and issue.

Entities operating grains warehouses may join the SMA as:

• SMA participants providing storage services, ie entities providing grain storage services on a commercial basis to other participants of exchange trading, which undertake to permanently provide storage space for Agricultural Exchange Market in a declared size,
• SMA participants who do not provide storage services, ie entities that obtain authorization for their warehouse in order to be able to offer goods in the auction system only on their own behalf and do not plan to make the warehouse commercially available to other trading participants on Agricultural Exchange Market .

• Required from all SMA Participants:
  • submitting a complete application for participation in SMA and paying the required fees,
  • meeting the conditions for obtaining authorization for at least one grain warehouse kept by the applicant,
  • undertaking to comply with relevant Exchange regulations, in particular the Rules of participation in the Authorized Warehouses System,
  • guaranteeing, in the opinion of the Exchange, the fulfillment of obligations arising from the agreement on membership in the SMA;
• Required only from SMA Participants providing storage services:
  • conducting business activity including grain storage,
  • commitment to make available in each Authorized Warehouse storage capacity dedicated to Agricultural Exchange Market at least at the level required by the Exchange (5,000 tonnes).

• the warehouse operator has been approved to participate in the SMA,
• the warehouse meets organizational and technical requirements set by the Exchange,
• the warehouse and the goods stored in it for exchange trading are covered by appropriate property insurance,
• the warehouse keeper provides the ability to operate the e-RTRS recording system provided by the Exchange in a given warehouse by at least:
  • 2 persons for a warehouse providing storage services
  • 1 person, in the case of a warehouse not providing storage services.

• Storage area:
  • at least 5,000 tonnes of storage space dedicated for stock exchange trading if storage services are provided
  • at least 500 tonnes of total storage space for a warehouse not providing storage services.
• Conditions and devices:
  • to carry out organoleptic control of grain, according to PN-R-74013,
  • for collecting cereal samples for quality tests, according to PN-EN ISO 24333.
• Laboratory equipped with analytical equipment and apparatus enabling the determination of the following grain quality distinguishing features according to current issues of standards:
  • grain moisture, according to PN-EN ISO 712,
  • impurities, according to PN-EN 15587,
  • grain density in a flowing condition, according to PN-EN ISO 7971-3,
  • protein content (Nx5,7), according to PN-EN ISO 20483,
  • falling Haugberg number, according to PN-EN ISO 3093

• Storage rooms:
  • clean, dry, free from warehouse pests,
  • with adequate protection against rain, leakage of ground water, temperature changes and access to rodents and birds;
  • undergoing periodic preventive measures and, if necessary, disinfecting, disinsecting and derivative procedures with appropriate means;
  • protected against burglary and theft;
  • having current plans with dimensions;
  • properly lit.
• Qualified warehouse workers, including at least one person with the qualifications of an appraiser within the meaning of the Act on the commercial quality of agri-food products in the field of taking grain samples (IJHARS certificate).
• Technical capacity to accept and release grains in a minimum amount:
  • of 500 tonnes per day for a warehouse providing storage services,
  • of 250 tonnes per day for a warehouse not providing storage services.
• Support at least road transport.
• At least one verified overrun scale with a minimum weighing capacity of 50t.
• Efficient devices for:
  • weathering grain,
  • moving and cleaning grain,
  • checking the correctness of grain storage, in particular a depth thermometer, hygrometer for measuring air humidity, grain sampling probe, instruments for preparing representative grain samples.
• OHS and fire protection equipment in accordance with applicable regulations.
• For a flat warehouse:
  • the possibility of using a self-propelled loading vehicle,
  • the possibility of unloading and loading any size of a grain truck, under a roof or at a covered point in the warehouse,
  • the possibility of storing grain in a heap formed in a way that allows determining the amount of grain by measuring.
• Implemented system ensuring food quality and safety (HACCP, GMP or equivalent) - only for a warehouse providing storage services.

Participation in SMA and authorization of a warehouse is the subject of one application, according to the template attached to the Rules of Participation in SMA (available on the Exchange's website). Submission of the application is treated as submission of an offer to conclude a contract for participation in SMA and authorization of the indicated warehouse (s) together with consent to submit to the authorization control by the Control and Authorization Unit. The application should be accompanied by the documents indicated in the Rules of Participation in SMA.

After the formal and substantive verification of the application, the Exchange commissions the Control and Authorization Unit to carry out the authorization control of the warehouse submitted for authorization, if it is required. After obtaining a positive result of the inspection, the Exchange Management Board adopts a resolution to grant the applicant SMA Participant status and the Authorized Warehouse status to the requested warehouse. Upon the adoption of the above resolution, an agreement on participation in SMA is concluded.

The Exchange conducts the process of granting SMA Participant status and warehouse / s authorization within 30 days from the date of submission of a complete application.

In specific cases, the Exchange may suspend participation in the SMA (forced suspension) if it finds that the SMA Participant:

• does not settle its obligations towards the Exchange on time,
• violates the exchange market order or regulations regarding Agricultural Exchange Market ,
• its activity may pose a threat to trading safety on Agricultural Exchange Market .

At the justified request of the SMA Participant, the Exchange Management Board may also suspend its participation in the SMA or suspend the authorization of the Authorized Warehouse (voluntary suspension) for a specified period, but not longer than 6 months.

In the event of a gross violation of the exchange market order or the provisions of the Exchange regulations, the Exchange Management Board may revoke the status of SMA Participant and terminate the SMA participation agreement with it.

The Authorized Warehouse accepts grain from trading participants after prior notification of delivery and agreeing its schedule, by phone, e-mail or in person (contact details are published on the Exchange's website), provided space is available within the limit made available for Agricultural Exchange Market . The warehouse accepts only grain free from legal defects (not encumbered by claims of third parties) and meeting the quality requirements specified by the Exchange. Acceptance of grain is documented by the Warehouse with proof of weight and class determination, and then recorded in the e-RTRS system. This is tantamount to the conclusion of an agreement between the owner and the Warehouse for the provision of grain storage services on the principles set out in the Rules of Participation in SMA. If the parties conclude a separate storage agreement, its provisions should not conflict with the abovementioned Regulations.

The Authorized Warehouse may mix and store non-separated, in one room or chamber, grain accepted from different trading participants, within the same type and class. In the event of a decision to withdraw grain from the Authorized Warehouse by the owner, the Warehouse is not obliged to issue him the same batch of grain that he received from him, only grain in the same quantity and meeting the minimum quality parameters for a given class.

The Authorized Warehouse (both providing storage and non-providing services) delivers grain to trading participants indicated in the e-RTRS system as its owners after prior notification of collection and arrangement of its schedule, by phone, e-mail or in person (contact details are published on the Exchange's website ). It is the Warehouse's duty to enable the owner who purchased the goods through an exchange transaction to collect the goods, in quantity and of quality consistent with the records on his account in e-RTRS, within 21 days after the date of the transaction. Prior to collection, the owner should present to the Authorized Warehouse a document confirming possession of the goods to be collected, taken from the e-RTRS system. The release of each batch of grain is documented by the Warehouse with proof of determining the weight of the grain and its quality class, and then recorded in the e-RTRS system.

At the request of the buyer, the Warehouse is obliged to carry out a free laboratory test to confirm the compliance of the goods made available with the standards for a given class.

Grain samples according to the latest edition of the PN-EN ISO 24333 standard are collected by each appraiser for each delivery of grain intended for trading on the  Exchange, followed by representative samples for laboratory testing of grain quality. The laboratory sample from a given grain delivery batch is divided into three parts for the purpose of carrying out a laboratory test in the Warehouse, for the grain owner and as an appeal sample. In the event of suspected occurrence of undesirable substances in a given batch of delivered grain (heavy metals, mycotoxins, pesticide residues), a separate laboratory sample is prepared to determine the content of undesirable substances in the grain.

The Authorized Warehouse, at the owner's request, ensures that an expert takes grain samples and makes laboratory samples before the batch of grain is issued, if the technical conditions of the warehouse allow it, or during loading, in order to carry out a laboratory test of grain quality.

Before accepting a batch of grain, the Authorized Warehouse carries out an organoleptic inspection in order to perform a preliminary quality assessment and to examine the organoleptic characteristics of the delivered goods, in accordance with PN-R-74013, in the scope of:

• the general condition and uniformity of the delivery lot,
• the smell and color of the grain,
• the presence of pests and pest residues,
• visible signs of fungal diseases,
• approximate determination of humidity and purity.

The Authorized Warehouse carries out laboratory quality testing of grain before accepting grain as well as before its release (at the request of the recipient) in order to determine the following quality features, in accordance with current standards:

• grain moisture, according to PN-EN ISO 712,
• impurities, according to PN-EN 15587,
• grain density in a flowing condition, according to PN-EN ISO 7971-3,
• protein content (Nx5,7), according to PN-EN ISO 20483,
• falling Hougberg number, according to PN-EN ISO 3093.

In contentious situations regarding the assessment of grain quality, which may occur during its acceptance or release between the owner and the Authorized Warehouse, each party has the right to order the quality testing of the goods at the selected Appeal Laboratory, based on prepared reference samples. The results of appeal tests are treated as final and conclusive, and the cost of the test itself is charged to the party for whom the results of these tests are unfavorable.

The Appeal Laboratories indicated by the Exchange are professional laboratories, equipped with high-class specialized laboratory equipment and analytical equipment, possessing qualified staff and having accreditation or approval (certification) to perform tests in the field of cereal grain quality by an independent international industry organization (e.g. GAFTA, ICC, CCFRA).

An SMA Participant providing grain storage services may charge for:

• grain reception,
• grain storage,
• grain release.

The level of the above fees is set by the SMA Participant, however, it cannot exceed the maximum rates set by the Exchange. The fees must include the cost of normative storage losses arising during the acceptance, storage and delivery of grain - the SMA Participant may not charge additional fees for this.

The fees for accepting, issuing and storing grain until the day of its sale on the Exchange in an Authorized Warehouse providing storage services are charged directly from the trading participant introducing grain to the warehouse. Fees for storage of grain starting from the day following the day of sale are collected by the Warehouse from the buyer.

An SMA participant not providing storage services does not charge fees for storing grain in a warehouse for up to 21 days from the date of the transaction in the auction system, nor for standard quality testing and loading.

The costs of participation in the SMA include the following fees charged by the Exchange:

• One-time fee from the application for warehouse authorization, calculated on each reported warehouse,
• Annual fee for participation in the Authorized Warehouse System, calculated from each Authorized Warehouse,
• A one-time payment for additional warehouse control, if necessary.

The level of the above-mentioned fees is specified in the price list published on the Exchange's website, however, during the pilot period, i.e. until the end of August 2020, the Exchange does not charge the abovementioned fees.

Pursuant to the Trading Rules of the Commodity Market of TGE, the status of an Exchange Member entitles to be a party to transactions concluded on the Exchange. Only entities with such status have a direct relationship with the Exchange and bear full responsibility towards it for orders placed and transactions concluded, regardless of whether they operate on their own account or on the account of their clients. The status of an Exchange Member is granted to entities that meet the conditions set out in the Trading Rules of the Commodity Market, in particular, with regard to giving warranty of due performance of the duties of an Exchange Member and meeting the requirements for the settlement of transactions concluded on the Exchange.

Only entities belonging to the categories listed in the Commodity Exchanges Act and Trading Rules of the Commodity Market of TGE may apply for Exchange Member status, i.e.:

• commodity brokerage houses,
• brokerage houses,
• energy companies,
• foreign legal entities conducting brokerage activities in the field of trading commodities in the territory of the Republic of Poland in the form of a branch,
• commercial companies that are not commodity brokerage houses, conducting activity, brokerage in the scope of trading exchange commodities,
• agricultural producer groups referred to in the Act on agricultural producer groups.status.

In order to obtain the status of an Exchange Member, an application must be submitted, in accordance with the template specified by the Exchange Management Board (available on the Exchange's website), along with the required attachments. Submission of an application is tantamount to expressing a desire to conclude an Exchange Membership Agreement. The Exchange examines the application and decides to grant the status of Exchange Member within 20 days of submitting all required documents. As soon as the Exchange Management Board adopts a resolution granting the applicant the status of an Exchange Member, a membership agreement is concluded.

In order to be able to conclude transactions on Agricultural Exchange Market , an Exchange Member must be additionally admitted by the Exchange Management Board to operate on this market. Admission to operation on Agricultural Exchange Market is based on an application submitted by the Exchange Member in accordance with the template specified by the Exchange Management Board (available on the Exchange's website). The Exchange examines the application and decides to admit an Exchange Member to Agricultural Exchange Market within 20 days of submitting all required documents. The admission conditions include in particular:

• meeting the requirements for the settlement of transactions concluded on the Agricultural Exchange Market , set out in the Agricultural Exchange Market Rules or by the Clearing House, i.e. having the status of a Member of the Exchange Clearing House at IRGiT or an agreement with a Member of the Exchange Clearing House regarding the clearing of the Exchange Member's transactions,
• authorization of at least one person authorized to represent the Exchange Member in exchange transactions,
• submitting an application for opening an accounts in the e-RTRS system (in the case of acting on behalf of clients, an e-RTRS account must be created for each client separately).

Each person authorized by an Exchange Member to represent him in exchange transactions must undergo a compulsory theoretical training followed by an exam after which he may act as an Exchange broker on Agricultural Exchange Market . Such persons must also meet all the requirements specified in detail in the Commodity Exchanges Act, including:

• have appropriate knowledge, qualifications, skills and experience,
• have full legal capacity and enjoy full public rights,
• not be legally convicted for committing a fiscal offense, offenses against the credibility of documents, property, business transactions, money and securities trading.

The status of an Exchange Clearing House Member entitles to settle directly with the Clearing House exchange transactions of the Member or entity on whose behalf it operates. A member of the Clearing House bears full responsibility for timely settlement of all obligations towards the Clearing House and other Clearing House Members resulting from transactions cleared by him. He is also obliged to participate in the Clearing guarantee system operated by the Clearing House. The status of a Clearing House  Member can be obtained by entities meeting the conditions set out in the Regulations of the Exchange Clearing House (available on the IRGiT website), including obligation to make a transaction deposit and meet minimum capital requirements.

Only entities belonging to the categories listed in the Regulations of the Exchange Clearing House may apply for the status of a Clearing House Member:

• companies operating stock exchanges,
• commodity brokerage houses,
• brokerage houses,
• domestic financial institutions other than those mentioned above, in particular banks, if their membership is aimed at cooperating with the Clearing House in the scope of clearing transactions concluded on the commodity markets,
• energy companies that have been authorized by the KNF to keep accounts or registers of exchange commodities,
• foreign legal entities conducting brokerage activities in the field of trading commodities in the territory of the Republic of Poland in the form of a branch,
• Legal persons or other organizational units with headquarters abroad, performing tasks in the scope of settlement of transactions concluded in trading commodities.

To become a member of the Exchange Clearing House at IRGiT S.A. an application should be submitted regarding the conclusion of a membership agreement, in accordance with the template specified by the Management Board (available on the Clearing House's website) with the required attachments. The Clearing House examines the application and decides to grant the status of a Clearing House Member within 2 weeks of submission of all required documents. Upon the adoption by the Board of the Clearing House of a resolution on granting the applicant the status of a Member of the Clearing House, a membership agreement is concluded.

The costs associated with membership on the Exchange include:

• a fee on an application to conclude an Exchange membership agreement,
• annual fee for participation in a selected market (eg Agricultural Exchange Market),

The costs associated with membership in the Clearing House include:

• annual fee for membership in the Clearing House,
• annual fee for participation in a selected market (eg Agricultural Exchange Market),

In addition, Exchange and Clearing House Members bear the costs of transaction and clearing fees on concluded transactions, as well as fees for additional services provided by the Exchange and the Clearing House.

The above fees are specified in price lists published on the website of the Exchange and the Clearing House, however, during the pilot period, i.e. until the end of August 2020, the Exchange and the Clearing House do not charge the abovementioned fees for operating on Agricultural Exchange Market .