Part of the GMEX Group

+44 (0)20 7148 900918 King William Street, London, EC4N 7BP, UK info@gmexgroup.com gmex-tech.com

GMEX Technologies Limited (GMEX Tech) delivers a multi-asset ‘Exchange-in-a-Box’ quoting, matching, execution and surveillance platform with additional clearing, depository, registry and warehouse receipts solutions, deployable locally or as a fully managed as-a-service over the cloud solution through a partnership driven approach.

GMEX Technologies Warehouse Receipts Solutions

GMEX Tech delivers innovative market infrastructure solutions enabling operators to create new business growth opportunities across multiple asset classes, including Equities, Debt, FX, Derivatives, and Commodities.

With clients across the globe, GMEX Tech provides innovative fully managed and custom deployed services across exchange, post trade and electronic warehouse receipts technology, which can be adapted to suit individual customer requirements.

Warehouse Receipts Product & Service Overview AvenirCommodity Is a Warehouse Receipts System product that has been designed from the ground up to be a versatile, cost-effective solution for the registration, life cycle maintenance, funding, trading and settlement of warehouse receipts.

The system was designed in conjunction with Agricultural Commodity for Africa (ACE), located in Malawi, based on their experience of operating a highly successful exchange in Africa. It is part of the GMEX Tech family of exchange software products and can be partnered with AvenirCCP for a central counterparty (CCP) solution.

AvenirCommodity can run on the same hardware as the AvenirCCP and AvenirCSD systems.

Market Data Warehouse Receipts

Finance Trading(BVO/OVO/bid/offer)

Contact Database

AvenirCommodity Framework

A multi-language solution that can be offered in local language(s) & English as well as other languages. A solution which can also be run on smart phones and tablets as well

as SMS to standard phones allowing information delivery to producers and traders.

Links to Banks

GMEX Technologies: Warehouse Receipts Solutions

+44 (0)20 7148 900918 King William Street, London, EC4N 7BP, UK info@gmexgroup.com gmex-tech.com

These functionality modules are discussed in the sections that follow:

Contact database – The contact database sits over all the modules of the AvenirCommodity system. It allows the operator and/or its agents (e.g. farmer cooperative societies, brokers etc.) to set-up and maintain a database of farmers who are interested in taking part in the warehouse receipt arrangements provided by the operator, either immediately or potentially in the future. The operator, brokers and organisations have logins to modify the contact database subject to certain rules.

Warehouse receipts – This module manages creation of electronic warehouse receipts and the various lifecycle activities up to final drawdown such as money, deposits, split receipt, merge receipt, transfer receipt, warehouse charges, moisture levels, settlement, documents and auditing.

Finance – The system allows the operator to track bank or other financing to farmers and other participants. This finance is secured against a warehouse receipt owned by the farmer/participant up to a pre-determined percentage of the value of the receipt. The system calculates interest daily and accrues it against a warehouse receipt. The system also offers a bridge finance option that provides 100% finance for a purchaser of a commodity and supports multiple pools of finance. Different pools can be used for different finance and may attract different interest rates.The module manages the lifecycle of a finance contract starting with issue, then the calculation of interest and finally settlement.

The finance module is integrated with the warehouse receipt module – all finance should have an attached warehouse receipt (note that for bridge finance a receipt is not available until the commodity has been purchased). It also links with the customer database for all farmer information.

Trading – The system currently supports two forms of trading:

• Bid / offer mode• Auction mode

Each form is independent of the other and can occur at the same time. Trading is intermediated – meaning brokers manage all activity on the market on behalf of buyers and sellers. All activity is public and visible by all players (with private information hidden).

Market data – The contact database module allows for the creation of a community of farmers and the ability to communicate with them easily. The market data requirement leverages the contact database and allows the operator to selectively send information to groups of farmers. The operator could arrange (through its own staff or a team of agents) to collect recent prices from the various markets around the country. These prices can be aggregated and form the basis of market data communications to farmers.

Contacts and market prices come together via farmer’s SMS subscriptions. Farmers can set up subscriptions by requesting prices for certain commodities to be sent to them over the season. Each week the system checks live subscriptions and current prices and sends out applicable messages.

Ad-hoc messages can also be sent to a group of farmers selected from the contact database. For example: The operator might like to send a SMS message to all farmers who grow commodity X in location A and location B.

The market data module manages market data into and out of the system. It also manages ad-hoc or on demand SMS messaging. It is integral to the contact database module.

Interfaces – It is possible to access and operate the system via several types of interface:• Front-end GUI• Reports• CSV File Upload

The ProcessGMEX Tech follows an agile development process with the emphasis on frequent releases to a test environment and continuous automated testing. Design decisions such as security are validated via periodic external review.

Formal documentation is maintained and includes the System Design, User Guides and any externally published interfaces.

Production upgrades go through a formal Change process and are managed out of hours.

PeopleGMEX Tech has a focused multi-skilled team, who manage both production support and new development. If specific niche skills or additional resource for a specific project are needed then contractors or third-party consultants are utilised.