Glossary of Terms
If you wish to find a term by name, please click the relevant letter below to be taken to a list:A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
A
Abatement means the process that involves the cutting out or reduction of environmentally damaging pollutants such as greenhouse gases.
Accredited re-processor means an organisation involved in the reprocessing of packaging waste materials in which for the purpose of this Agreement is accredited by an agency.Agencies means the Environmental Agency, Scottish Environment Protection Agency or the Environment and Heritage Service or any successor to the same.
Alloys means typically an iron-bearing material added to steel to produce certain physical properties.
Anonymity means that orders placed on the trading screen and via the telephone will be anonymous to other scrap-ex exchange members.
Arbitrage means the price differential between two commodity markets. For example the UK and China.
Authorised traders means the individuals that can trade under the exchange members ID.
B
Backwardation means a market situation when a nearby price is higher than a further forward price.Baler means a machine used to compress secondary materials and bundle them into different size .
Base metal means a Non-precious metal which are often industrial metals used in manufacturing.
Bid means an order placed by a buyer to purchase a specified amount of product or certificates.
Bullish means a generally an optimistic attitude in which it is felt that business activity will be good, that prices and volume will be up.
Business Day means a day other than a Saturday or Sunday on which Banks are generally open for business in London.
C
Chemical Specifications means the limitations put upon the inclusion of various elements insofar as the traders requirements are concerned. This will often involve minimums and maximums of certain elements.
Confirmation or Confirm means a document stating the price level that the deal was transacted at, counterparties, volume, scrap-ex commission, net settlement amounts / funds, deposit (where applicable),delivery charges (where applicable), bank charges (where applicable) and any other information scrap-ex deem necessary to provide to either the buyer or the seller.
Contango mean a market situation when a nearby price is lower than a further forward price.
Client Account means an account that is operated solely for the purposes of settling and clearing client funds and is “ring-fenced” from any scrap-ex activity.
Counterparty means a buyer or a seller who is a registered member of the scrap-ex exchange.
Client means a buyer or a seller who is a registered member of the scrap-ex exchange.
CRCs means Carbon Reduction Commitments. A mandatory system that will affect all organisations that receive electricity through Half Hourly Meters (HHMs) from 2010 / 2011.
D
Delivery Charges means the cost to scrap-ex of complying with the provisions of delivery.
E
Efficient market mean a market in which information is immediately available to all users.
Emissions means substances including particles and gases which are released into the atmosphere as a result of fossil fuel burning and chimney smoke, as well as from the exhausts of modes of transport like motor vehicles and aircraft.
ePRN means electronic PRN used in transfer with the NPWD.
Exchange Member means the counterparty who has registered with scrap-ex for the purpose of using the services on the trading platform and broking services of scrap-ex.
Exchange Member ID means the code or name allocated to a registered company as a user of the exchange giving them access to the trading platform and all the services of scrap-ex. An exchange member will advise scrap-ex of who is authorised to trade under that ID and scrap-ex will provide individual passwords for those authorised traders.
F
Fabricator mean a company that processes refined (eg ingots, billet..) or semi-fabricated (eg extrusions, sheet metal..) metal to produce products for sale to end consumers.
Firm means an order that is active in the market until the counterparty has removed that order on the trading platform or via the telephone.
Forward Contracts means a contract for the sale by a seller and purchase by a buyer of an amount of product or certificates at some time in the future.
Forward curve
The series of prices that someone would be willing to transact today, for future delivery periods. It is the current snapshot of of all market participants expectation of prices in the future for a secondary commodity.
Forward PRNs means a PRN not yet issued by an accredited re-processor or accredited exporter for the purpose of the agency regulations, but which shall be issued at a future date as specified by such accredited re-processor or exporter and in the scrap-ex listed forward contract.
Foundries means businesses that cast metal.
Forward contract means a contract to trade forward product or certificates.
Fundamental analysis means the study of the underlying physical factors that affect the supply and demand of a secondary commodity.
G
Green waste means biodegradable waste such as grass cuttings, hedge trimmings or other material.
H
HDPE means High-density polyethylene.
Hedge means a transaction entered into with the motivation to reduce an existing risk.
I
Initial deposit/margin means funds put up as security for the guarantee of the contract fulfilment at the beginning of the contract / execution of trade.
Initiator means the counterparty that initiates movement in the trade resulting in a matching of price and transaction.
L
Liquid market means a market where selling and buying can be achieved readily.
M
Metal Settlement Report means a statement that summarizes secondary metal trades.
N
Net Settled Amount / Funds means a sum equal to the settlement amount less scrap-ex commission payable by the Buyer and the Seller and any VAT or other sales tax payable on the same.
Non-ferrous Metals are metals that contain little or no iron. They include aluminium, copper, lead, tin, zinc, and precious metals such as gold, silver, platinum, magnesium.
NPWD means the National Packaging Waste Database supported by the Environment Agency.
O
OCC means Old Corrugated Cardboard unbleached and un-waxed kraft paper.
OTC means over the counter which is a bilateral contract between buyer and seller.
Offer means an order placed by a seller to sell a specified amount of product or certificates.
Order means a binding indication of a firm order for a product registered with scrap-ex on behalf of the participant or in the case of use of trading facility platform, by the participant directly.
P
Payment Methods means Instant payment, BACS transfer, CHAPS transfer or Cheque.
PET means polyethylene terephthalate.
Principal means the active counterparty or participant in any transaction.
PRNs means a packaging recovery note (or a “PERN” where “E” stands for export) issued by an accredited re-processor or exporter.
PRN Exporter means an organisation which is accredited by an agency as an exporter of packaging for recycling outside the United Kingdom.
PRN Regulations means the Producer Responsibility Obligations (Packaging Waste) Regulations 1997 and any statutory modification or replacement thereof.
S
scrap-ex Commission means the fees to be paid by the buyer and the seller for the provision by scrap-ex of the Services as set out in the pricing section of the agreement.
Services means the provision of brokering for the sale and purchase of product or certificates between scrap-ex exchange members on the trading platform or via the telephone.
Settlement Amount means a sum equal to the price payable for the product or certificates the subject of any sale agreed between a buyer and a seller net of scrap-ex commission.
Settlement Date means the time stated in the confirmation as the time when the sale shall conclude.
Smelter means a processor of mine feed or scrap material (secondary smelter) which produces crude metal.
Spread
A term referring to the difference in two prices. The contango or backwardation between two prompt dates or the difference between the bid and offer price.
T
Trading Platform means the scrap-ex web based system accessed by exchange members and all broking services facilitating the sale and purchase of product or certificates. Also referred to as “screen” or “trading screen”
V
Volatility means the measure of price change for a particular material over a period of time.
W
Website means the internet site www.scrap-ex.com.
WEE Approved Authorised Treatment Facility means an authorised treatment facility (ATF) that is approved by the appropriate authority under the Regulations to issue Evidence Notes for WEEE treated within the UK.
