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MENU ITEM #14 TRADE MATCHING JOINT VENTURE OPPORTUNITIES"Your Financial Relationship Partner"
Welcome
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The bank plays an important role facilitating all money confirmation and funds transfer arrangements either for themselves as an involved "partner", or as a facilitation service for the other participants who hold their participating funds in their bank.
The "OWNERSHIP" achieved, the reseller agent can now move forward to Proof of Product to arrange the sale of the commodity to a purchaser. (NOTE: There may be more than one reseller involved in some transactions before it reaches the end user - each usually contributes a service or sometimes an upgrade to the poduct/commodity until completion of the sale. The purchaser provides a bank letter of credit or other financial instrument from their bank so when the product is delivered payment is secured and released to the seller (or re-seller agent) when all conditions of sale are met. The profit difference between purchase to the final sale is then shared between the parties according to their JV participation agreement with each participant having provided a service, whether that service was providing the "financing" or otherwise.
The degree of profit is determined by:
a.) the difference between the purchase price and the sell price - commonly called the spread,
b.) the time element that exists from point of purchase to the final delivery to the end buyer of the commodity
c.) the commodity bought and sold under a succesful matched trade from producer to end buyer
d.) the amount of funds placed forward to accomplish the buy/sell in the trade match dealing was accepted by the producer and their bank
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Let's start with the crude oil and realize that similar circumstances are applicable in all petroleum related productivity. Once crude oil is available, the re-seller makes the purchase and forward sells to the refinery. The time element for other interested participants, especially the Funds holder participant, is crucial.
Funds holder participant must be prepared to see the funds tied up probably for weeks and possibly months until delivery to the refinery is made. Scheduling, shipping risks, insurance issues and many other factors come into play and may increase the risk and involvement of other participants in the end profits..
However, the Letter of Credit remains the safety of the buy/sell that funds will not be lost, but realization to profit may vary under different elements and circumstances including the time element. Always in a business dealing a buyer, seller and possibly other private funds participants, investment bankers, or sometimes just the business' banker seek a fast turn around time for the use of their funds to maximize their profit.
BE AWARE: These opportunities for private funds participation on commodities may be set for a one spot buy/sell or have the funds standing for a longer term contract - as the long term contract stands the risk factors of consideration are minimized. However, a refinery commonly has a preset for deliveries of their intake crude and exit refined product because they can not start and stop, they must have a steadily purchasing client making a any multiple party participation opportunity difficult to secure for a longer period of time because they already have sales secured. The same issues apply either on crude oil supply or on refined product sales for the private participant, similar issues of risk and delays to see the return among the participants exist, but when found and sought out to be real can be lucrative.
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Below is a summary of how financial paper buy/sell matched trading works and how a licensed trade group partner, to whom the funds participant is introduced for a possible business potential participation relationship, creates profits from client participation funds. The basic premise is to create a margin of profit, at an average 5% to 20% per transaction, in the buying and selling of a product.
It should be noted that the most public exposure of this trading and its risks were exposed in the buy/sell of mortgages reminding us that nothing is without risk in the world of finance.
The advantage of financial paper trading over physical commodity trading is:
a.) It is easier to match both buy and sell trade in tandem with full commitments by all banks involved (issuing, trade, exit) in the transaction PRIOR to executing the transaction.
b.) The above commitments from all banks ensures that there is minimum trade risk in being unable to sell a product that is purchased.
c.) The electronic nature of the transactions, allows the transaction to be conducted via a custodial transactional account. With capital under a non-depletion status in the bank account, the risk to capital is minimized, almost removed, as this is guaranteed by the bank holding the funds itself.
d.)There is no delay in physical shipment, as it is a physical product under buy/sell under electronic means. This allows a greater number of transactions to complete within shorter time periods, and possibly more that one per day when organized appropriately. It is this speed of transaction which magnifies the margins to amounts which cannot be possible with physical product transactions. It shoukld be noted that bank to bank courier deliveries of the physical product still has to take place.
The licensed trade group to whom we make introduction with is a holder of "financiai paper" under contract with numerous issuing banks and has long standing relationships with the issuing banks having been involved in this field for many decades. In addition, exit relationships for the purchasing are already established making it easy to organize sale and buy agreements to be executed simultaneously. As such, they are in a position to utilize their relationships, to purchase "financial paper" commitments and exits with both buyer and seller using their monies and possibly additional monies from participating invited participants. Participants place their funds forward and a new Business Venture is created with new matched trading agreements dividing the profits with the new participant.
The participant is recognized as a business partner associate and the dealings are transparent at each stage of the buy/sell trade process, including disclosure the profit margins being made via the buy/sell contracts. This is all to establish and develop a long term relationships between the licensed trade group and their new participating business partners.
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"Your Financial Relationship Partner" Commodity Buy/Sell Joint Participation in TRADE MATCHING with Challenging Returns
INTRODUCTIONTrade Matching is a simple business model which can be applied to any product/commodity by organizing the original purchase of the commodity by a "re-seller" and the forward sale to an end purchaser done in tandem with each other.
When the purchase of any commodity is made there are factors that apply as to the ownership and Proof of Product, which means the following in the case of most PHYSICAL commodities oil, grain, metals, diamonds, and many other PHYSICAL property commodities. In most cases the following applies as Proof of Product:
When the purchase of any commodity is made there are factors that apply as to the ownership and Proof of Product, which means the following in the case of most PHYSICAL commodities oil, grain, metals, diamonds, and many other PHYSICAL property commodities. In most cases the following applies as Proof of Product:
a) Certificate of Ownership from commodity Producer to confirm the Allocation and the Ownershipb) Registration from Governmental Authority to confirm the Allocation of Ownership and for them to issue the Permit for Exportc) Producer's or Seller's Authority to Selld) Confirmation from a transport company, to confirm the delivery schedule and that the transport of the Product to the loading port is secured.e) Lifting Schedule, confirmed by loading port / terminalf) Export Declaration of customs
In order to attain "OWNERSHIP" the reseller often uses a partnership type of arrangement to "show" funds of his partner with cash funds. Sometimes these "show of funds" are provided through only an institutional bank relationship and sometimes other sources such as pension funds, unions or private funds; of course all these funds are held within the banking system so the institutional banks are always involved in all transactions. In any case the reseller agent achieves the commodity "ownership" under a PARTICIPATION arrangement with a cash fund holder.
In order to attain "OWNERSHIP" the reseller often uses a partnership type of arrangement to "show" funds of his partner with cash funds. Sometimes these "show of funds" are provided through only an institutional bank relationship and sometimes other sources such as pension funds, unions or private funds; of course all these funds are held within the banking system so the institutional banks are always involved in all transactions. In any case the reseller agent achieves the commodity "ownership" under a PARTICIPATION arrangement with a cash fund holder.
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Each participant has a vested interest to see a transaction close as quickly as possible. If your participation was providing the funds to show in the transaction then the number of times your funds can be shown over and over again in a multiple of transactions determines the returns for you as a participant.
Let us review a few examples of buy/sell involving different commodities and evaluate the differring time frames from the beginning of the transaction to closing. Then follow through the anticipated profitable gain on the part of each of the participants. It should be noted that introduction to the persons or corporate that represent your possible PRIVATE involvement in these types of opportunities as a participant, is crucial - you must be introduced to these opportunities by those in the know in order to participate and profit from them under a participation arrangement - Trust Management Services Inc. is knowledgeable and capable to make these introductions and receive a pre-arranged portion of the participation arrangement profits for their introductory participation in these ventures.
Example #1 - Oil and Petroleum Products
The sequence of events that take place from exploration to production then on to distribution and refining, to finished products is a long term investment, but as most commodities there is a consumable element that has many opportunities to profit at each stage of product deliveries.
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Example #2 - DiamondsHere the same investment opportunities take place, however the delivery of product/commodity is much simpler as the diamonds can be carried in one's person under security measure yet the time for a transaction to close is much less - hence more turnover for more profit.
The re-seller takes ownership as previously explained, the diamonds are brought to a "table top" meeting through that person. The security measures are much less complicated, the assessment of value is performed on the product, the money exchanged for product as delivered on the spot, and the transaction closes.
The time element is much less, number of transactions using the same participant funds more frequently occurs, so number of times to payout profit is much more frequent hopefully resulting in a better return to the varied partiipants overall.
Improved cash flows make it very lucrative, but it should be understood that the diamond mines do not open to produce without knowing they have buyers in place to purchase. This being the case, to seek out a placement for specific participants with funds within the industry has its challenges as well.
Example #3 - Electronically Traded Commodities When applied to an electronic securities product, also a commodity, such as Medium Term Notes (MTNs) or mortgages, or Standby Letters of Credit instead of a physical commodity, additional benefits result, including certainty of profit commitments from all banks involved in the transaction, speed of transactions to close, and protection of capital via a secured and specified custodial security account that maintains participant funds at a initial level of deposit within the account.
The re-seller takes ownership as previously explained, the diamonds are brought to a "table top" meeting through that person. The security measures are much less complicated, the assessment of value is performed on the product, the money exchanged for product as delivered on the spot, and the transaction closes.
The time element is much less, number of transactions using the same participant funds more frequently occurs, so number of times to payout profit is much more frequent hopefully resulting in a better return to the varied partiipants overall.
Improved cash flows make it very lucrative, but it should be understood that the diamond mines do not open to produce without knowing they have buyers in place to purchase. This being the case, to seek out a placement for specific participants with funds within the industry has its challenges as well.
Example #3 - Electronically Traded Commodities When applied to an electronic securities product, also a commodity, such as Medium Term Notes (MTNs) or mortgages, or Standby Letters of Credit instead of a physical commodity, additional benefits result, including certainty of profit commitments from all banks involved in the transaction, speed of transactions to close, and protection of capital via a secured and specified custodial security account that maintains participant funds at a initial level of deposit within the account.
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PROCEDURE SUMMARYA brief summary of the application procedure for new participants that wish to become a participating partner, this does NOT guarantee that the other party is interested in new participants, like any business association - each side must want to work with the other. To have the other partner determine if they wish for a working business partnership relationship.
Listed below are the summary of the beginnings of procedures of application:a.) There must be a Request - Particpant must ALWAYS be the account holder and signatory and appropriate specific documentation is requested as necessary.b.) Confirmation of Funds - they are confirmed, compliance completed and accepted as genuine, then a contact and contract is initiated to move forward.
Once acceptance of the request is granted by the industry group chosen under recommendation, then Private participation trade agreements are issued to the signatory and account holder ONLY. Please do not ask for private contract or trade group details to be released to any third party or potential participant, representatives/intermediaries, as this is against the trade group's in house attorney's strict instructions - this is a PRIVATE introduction of a potential business arrangement. There are some items necessary to establish the potential participation beginning with the usual bank "Know Your Client" information requirements to create a usable protected capital scenario for transactions. through a custodial account with provision for non-depletion of capital funds deposited at the designated trade group recommended bank.
Preparation of Sale and Buy contracts; Issuing bank compliance confirms funds are held in the trade bank; Execution of daily transactions by providing trade bank back office with buy/sell Euroclear tickets to organize banking commitments for each transaction. Then the pay out profits as agreed weekly, bi-weekly or monthly or as underlined in the partners business agreement - this is common then to designate profits to project funding if those criteria are approved.
All begins with the application ordering and then when the trade group is satisfied to possibly engage with the potentila funds holder, then that invitation would be extended.SHOPPING CART CLICK HERE
Listed below are the summary of the beginnings of procedures of application:a.) There must be a Request - Particpant must ALWAYS be the account holder and signatory and appropriate specific documentation is requested as necessary.b.) Confirmation of Funds - they are confirmed, compliance completed and accepted as genuine, then a contact and contract is initiated to move forward.
Once acceptance of the request is granted by the industry group chosen under recommendation, then Private participation trade agreements are issued to the signatory and account holder ONLY. Please do not ask for private contract or trade group details to be released to any third party or potential participant, representatives/intermediaries, as this is against the trade group's in house attorney's strict instructions - this is a PRIVATE introduction of a potential business arrangement. There are some items necessary to establish the potential participation beginning with the usual bank "Know Your Client" information requirements to create a usable protected capital scenario for transactions. through a custodial account with provision for non-depletion of capital funds deposited at the designated trade group recommended bank.
Preparation of Sale and Buy contracts; Issuing bank compliance confirms funds are held in the trade bank; Execution of daily transactions by providing trade bank back office with buy/sell Euroclear tickets to organize banking commitments for each transaction. Then the pay out profits as agreed weekly, bi-weekly or monthly or as underlined in the partners business agreement - this is common then to designate profits to project funding if those criteria are approved.
All begins with the application ordering and then when the trade group is satisfied to possibly engage with the potentila funds holder, then that invitation would be extended.SHOPPING CART CLICK HERE
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Other assets of varied commodities such as diamonds, gold, oil reserves, and/or varied commodity supply contracts may also be structured that they could be held as security for a loan or credit line value - either through a client's own bank relationships or with assistance from the trade group and their banking LENDER relationships..
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MORE INFORMATION AFTER RECEIPT OF THE APPLICATION DOCUMENTATION IS AVAILABLE ON THIS TOPIC