Eurivex provides investors the opportunity to buy and sell Notes representing trade finance deals at a discount or a premium in our secondary marketplace, allowing for immediate liquidity or very exciting investing opportunities.
Access to the Eurivex Secondary Marketplace is allowed only to those who have valid trade finance deals (to sell) and available funds in their account (to buy).
Investors first need to choose a strategy and once they receive confirmation that their funds have been invested, they will receive a ticket which will state the amount invested, rate of return and maturity of the deal among other information.
Suppose the investor needs money and does not wish to wait until the maturity of the deal to receive the funds. Here are the steps to follow and things to consider:
Investors first need to transfer funds to their account so that they will be allowed to place purchase orders to buy outstanding trade finance deals that have not yet matured in order to achieve a satisfactory return.
Suppose the investor wishes to buy deals from the marketplace. Here are the steps to follow and things to consider:
If you are a seller, you should calculate the interest up to the date of the intended trade and attempt to sell at a higher price than par value. The higher price at which you sell, the better for you.
If you are a buyer, you should make sure that you don’t overpay for accumulated interest up to the date of the proposed transaction. The lower the price at which you buy, the better for you.
When you press the order to buy or sell in the Secondary Marketplace, the system will block your order for 2 hours during which time you have the option to cancel the order and not pay any cancelation fee.
Once the 2-hour period is over, your order is routed into our automated trading system and thereafter if you cancel the order, you will pay the cancelation fee.
The Open trades are those that are active and will mature at a later date than compared to the current day.
For investor protection, Eurivex does not allow trades to occur on open trades that mature shortly.
Distressed trades are not yet available in the system because we have no tickets that are in arrears or in default. The provision is there to cover for future cases where a ticket settlement may be delayed or will be in default and hence if the current holder does not have the appetite to wait until the matter is resolved, the investor decides to sell at a substantial discount. In such a case, another investor with such risk appetite may step in and buy the notes to hold until the situation is resolved in the hope and on the expectation that the recovery money/price is higher than the traded price.