Browsing articles tagged with " String contract"


Mar 29, 2012   //   by Administrator   //   Procedures  //  Comments Off on UNIFORM RULES AND PRACTICE FOR INTERMEDIARIES

These are the rules of trade we practice. They have been developed by Davide Papa over the course of 25 years of international commodities trading. You will not find courses taught about international commodities trading that involve intermediaries. Almost all courses assume that trading goes on between buyers and sellers only. In the oil business there may be 500 or so principals (majors) that do primary transactions. But there are thousands of intermediaries, agents and people posing as mandates that are attempting to get lucky (in the secondary market) on just one oil transaction. Why do they chase such a dream? Because the commission from just one deal will set them up financially for life.
When I entered this business I looked at transactions and offers that were floating around and realized very quickly, “How do these people expect to get paid?”
Non disclosure agreements and non circumvention agreements are for the most part unenforceable. How is a person with no money going to take on a multi-lawyer firm representing a billion dollar company and expect to get any resolution? And when you consider the international nature of the business, how do you expect to deal with differing legal jurisdictions? So I started looking and found Davide Papa’s writings. The rules derived from his brilliant legal mind, over the course of many failures and successes, are the only safe trading procedures that will protect every party in a deal where an intermediary is in the middle of a transaction. If you are an agent (intermediary) and are not using these procedures it will be a truly rare moment that you will ever see any money coming your way. It is more likely that you will get sued for everything you own from just one little oversight, that at the time seemed insignificant. “It’s only a few cents”, but multiply that by 24 million barrels and it becomes a big deal.
Most of the intermediaries, agents and those posing as mandates for a seller or buyer are uninformed boneheads that are trying their best to insert themselves in between a buyer and seller and expect by some miracle that they are going to make some money. I can’t tell you how many offers I have received that have faulty procedures and quote banking instruments that do not even exist or that could never work in an oil deal for multiple reasons. It is like they are saying if you want my oil just deposit 300 million in my account and we will take out what we need.
Excuse me. I think I’m on a rant. Well here are the rules.  We are including them because we follow them (for your benefit).


Amended: 1st March 2012

Must be applied by those who have purchased and studied FYBR, ITSI or WTMW doctrine once such declares a URPIB Practitioner status. All advance application apparent in rules update are considered latest application to which URPIB rules override matters of the doctrine should conflict to the overall trading structure is apparent.

© URPIB Rules of Trade Full Revision 1988-2011.
Last Revision:1st March 2012
English spelling and corrections. 10th March 2012
Copyright: FTN Exporting Australia 1988-2012