Sovereign Horizon Commodities’ Post

STANDARD FOB TRANSACTION PROCEDURES Read Blog: https://lnkd.in/g5c9D373

The Law of one price. The law of one price is an economic principle that states that identical products/assets should have the same price worldwide under specific conditions. These conditions include a frictionless market without transaction or transportation costs, consistent currency exchange rates and no price manipulation. This concept forms the basis of purchasing power parity (PPP), which aims to maintain equal purchasing power across different markets. However achieving PPP in reality is challenging due to trading costs and market limitations. Despite its idealized assumptions, the law of one price offers valuable insights into market dynamics and the impact of arbitrage on asset prices.

Recently, U.S. regulatory authorities have announced penalties in two cases involving bribery and market manipulation in the commodity trading sector. On September 25, the U.S. Commodity Futures Trading Commission fined Merrill Lynch Commodities, Inc., based in Houston, for exceeding the federal and ICE Futures U.S. position limits in contracts that reference natural gas futures traded on the New York Mercantile Exchange during March to April 2023. On September 26, the U.S. Department of Justice (DOJ) announced that a former trader at Freepoint Commodities LLC was convicted of bribing Petrobras officials between 2010 and 2018, violating the Foreign Corrupt Practices Act (FCPA). Freepoint had previously pleaded guilty to bribery charges and entered into a deferred prosecution agreement with the DOJ, agreeing to pay over $98 million in penalties and forfeiture. These cases serve as a critical reminder to maintain localized compliance practices. It is recommended that all legal personnel fulfill compliance management responsibilities and facilitate proper circulation of information by: 1. Ensuring compliance reminders and policy dissemination are effectively informed to all staff; 2. Monitoring local compliance developments, conducting analysis and responding accordingly; 3. Relaying relevant compliance updates with headquarters in a timely manner. Sources： 1. https://lnkd.in/g4PzxTMC 2. https://lnkd.in/gSyJQYGm

The Securities and Commodities Authority (SCA) urges state- licensed companies not to contract with unlicensed individuals or entities to attract customers. It stresses the need to provide a list of the names of its contractors for customer attraction services, termination of any current contracts in this regard, and adherence to regulations and regulations to avoid violation and legal issue. The circular is available in the bayou SCA urges licensed companies in the country not to contract with individuals or entities without licenses to attract clients. It emphasizes the necessity of providing it with a list of the entities contracted for client attraction services, terminating any existing contracts in this regard, and adhering to regulations and laws to avoid violations and legal accountability.

🔍 The Importance of Due Diligence in Commodity Trading 🔍 In the fast-paced world of commodity trading, due diligence is not just a procedural step; it's a critical component of success. Whether you're a buyer or a seller, conducting thorough research and verification can safeguard your interests and ensure smooth transactions. For buyers, due diligence means verifying the seller's credibility, assessing the quality of the commodity, and understanding market conditions. It helps prevent fraud, ensures the authenticity of the goods, and allows for informed decision-making. For sellers, it's about vetting the buyer's financial stability, understanding their reputation in the market, and ensuring they have the capacity to fulfill their commitments. This process minimizes risks and protects against defaults or delayed payments. Time wasters are more than just a nuisance; they can disrupt your operations, lead to financial losses, and strain your trader's productivity. By investing in robust due diligence processes, you safeguard your business, foster trustworthy relationships, and pave the way for successful trades. Remember, in commodity trading, time is money, and every minute counts. Let's prioritize due diligence to protect our investments and ensure smooth, profitable transactions. In essence, due diligence fosters trust, transparency, and reliability in commodity trading, paving the way for sustainable business relationships and long-term success. __ #CommodityTrading #DueDiligence #BuyerBeware #SellerBeware #MarketResearch #RiskManagement #TradeSecurity #FinancialStability #SupplyChainIntegrity #FraudPrevention #QualityAssurance #MarketConditions #TradeVerification #BusinessIntegrity APA GROUP PTY LTD #ReputationManagement #SustainableTrading #TrustBuilding #Transparency #BusinessSuccess #TradingBestPractices #TransactionSecurity #CommodityVerification #InformedDecisions #MarketTrust #TradeReliability

Brokers and Transparency in Commodity Deals One of the biggest challenges in the commodity trading space is the lack of transparency when it comes to naming buyers. Many brokers are hesitant to reveal their buyer’s identities, which can make due diligence nearly impossible. This raises an important question: How can sellers or intermediaries be expected to share sensitive official documents and follow through with procedures without knowing who is receiving them? Is this a justified concern to protect business relationships, or does it hinder the trust and efficiency necessary for successful deals? I’d love to hear your thoughts and experiences on this. Let’s start a conversation. #CommodityTrading #Brokers #Transparency #DueDiligence #ExcessCommerce

Important Advisory for Potential Clients: If anyone approaches you claiming they have crude oil stored in a tank in China, or on a loaded vessel floating somewhere at sea or anchored at a port, there is a 90% chance they have no idea what they are talking about. Similarly, anyone claiming to be a buyer in such a scenario is likely wasting your time. With my years of experience in this trade, I can tell you that the process of buying and selling crude oil or gold involves rigorous procedures. Buyers and sellers negotiate through bank-to-bank communication, often meeting in person. The idea that someone would bypass all these steps and have a loaded vessel waiting for a random buyer is unrealistic—it simply doesn’t work like that. If someone claims otherwise, it’s either **fraudulent** or they’re **clueless** about the trade. For those genuinely interested in purchasing **BLCO** or **raw gold**, you’ll be dealing with a **direct mandate**, not a chain of intermediaries. Here’s how we operate: 1. The **buyer** sends a **Letter of Intent (LOI)** directly from their company (not through intermediaries). 2. We conduct the deal **bank-to-bank**, with the buyer providing a financial instrument, either **CIF or FOB** terms. 3. Once the banks of both parties engage, the deal becomes serious. At this point, the seller arranges the vessel to be loaded and heads to the buyer’s **destination port**. 4. Upon arrival, a **quality test** is performed. If both parties agree, the **buyer pays**, commissions are distributed, and the product is transferred to the buyer’s storage. It's that simple and straightforward. There is **no need for vague claims** of oil on some unknown vessel. Such scenarios often involve **nonexistent products or stolen goods**. We always advise buying **BLCO directly from the official terminal** with all documents issued in your company’s name. This ensures transparency and legitimacy. Thank you.

Lawyers as commodities: I don't view people close to me as commodities. That includes family and friends but also people I do business with like clients, suppliers, and partners. I don't think they're "easily replaceable" or "easily interchangeable". They're not easily replaceable and I'm not either. If a lawyer thinks lawyers are commodities, either: A. They consciously or subconsciously believe THEY are a commodity and are reflecting back to the world what they believe about themselves or B. They think OTHER lawyers are commodities but not them in which case they're delusional I'm not a commodity. Neither are you. #armingtherebels