Full question:

What follows is a trading protocol that is utilized by my provider. I am wondering what you think of it and if you feel it is a viable method. If it is a solid procedural method could you assist me in locating a buyer who would feel the same way about my providers trading policies?

They are as follows:

1) Shows the protocols and qualifier paper work and defines it for the purchaser. [Future documentation will be sent to the purchaser straightaway as necessary]

2) Confirm and authenticate for the purchaser that the agreements to work on behalf of the purchaser are properly prepared and set up – [Provider is unable to get reimbursed or pay out and fees from deals; you need to rely upon your principal to take care of this].

3) The purchaser must point out the crude oil or refinery goods they need and bring together the purchaser and provider. [The parties need to be working with a signing authority or a party to the trade that is able to endorse any purchase].

4) Discussion with the purchaser will provide the necessary information to prepare a proposal agreement for the purchasers endorsement [an agreement number will be issued that categorizes this transaction from that point onward].

5) To this point, the purchaser needs to recognize that the provider is being utilized to arrange all logistics and set up for transport ships.

6) Purchaser and provider both endorse the agreement

7) Purchaser gives communication or SWIFT message provided by their funding center to HSBC Canada declaring their capacity to finance the transaction. [Detailed wording will be forwarded straight to the purchaser].

8 ) Agreement and funding center notice proceed to HSBC Moscow for ultimate approval. [“Approval” in this scenario is when HSBC approves the purchaser’s funding center and the notice].

9) Provider buys replacement crude oil via Transneft to provide for agreement terms.

10) All paper work is given back as per the agreement stipulations for the provision of product. Proposed Laycan schedule is incorporated as well.
Purchaser selects Laycan dates and transport is carried out as dictated in the agreement. [To this point, Charter Company contracts need to be paid to CIBC Canada or the purchaser’s ships must be endorsed. Transporting times will be impacted by how long it takes to put the charter company’s contracts in place].

11) When the cargo consignments are put aboard and surveilled, compensation is conducted via transfer from the purchaser’s funding center to the account of the provider at HSBC Canada.

12) Reiteration as per Laycan dates being schedules and approved

Answer:

If you are the intermediary introducing the purchaser to the provider in the first spot – say goodbye to your deal – the trade is unmanageable for an intermediary who is involved.

At the point of which you lose the ability to manage the transaction yourself you lose the transaction and are out. The trade will be completed by the purchaser and the provider and you will not know what hit you.
YOU NEED TO BECOME THE PURCHASER TO THE PROVIDER AND THEN THE PROVIDER TO YOUR FINAL PURCHASER – this will secure the trade in your favor and you’ll be safeguarded.

As far as the remaining part of this trading protocol is concerned…it is entirely ridiculous.