GSK Investments

GSK Investment
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COMMODITY TRADING MODELS

GSK INVESTMENTS​

INNOVATING COMMODITY TRADING ACROSS CONTINENTS

GSK INVESTMENTS, we operate a sophisticated and fully automated trading platform, enabling participants from Africa, Europe, Asia and America to effortlessly buy and sell commodities. Users can trade from their preferred locations or use trading terminals provided by GSK INVESTMENTS. Our platform is versatile, supporting various trading models including auctions, reverse auctions, spot, forwards, and futures trading.

Spot Contract Trading with GSK INVESTMENTS

GSK INVESTMENTS revolutionizes spot contract trading through the use of electronic warehouse receipts (e-WRs). This process is initiated when:

  • GSK INVESTMENTS issues e-WRs to a participating member.
  • These e-WRs are converted into spot contracts for at least 1 metric ton (MT), detailing the commodity type, grade, and warehouse location. These contracts are displayed on our trading board, assigning each commodity owner a specific quantity in MT.
  • During the trading day, participants can place bids and offers. Successful matches lead to settlement within two days post-trade (T+2).
  • Our trading team oversees the delivery of commodities to buyers and ensures cash settlements are made.

To secure seller payment, particularly from farmers’ cooperatives and trading members, we require buyers to deposit funds equivalent to the commodity value at the current market price into GSK INVESTMENTS settlement account a day before the trade (T-1).

Forward Contract Trading

Our forward contract trading, also based on e-WRs, involves:

  • An agreement between a seller (typically a farmers’ cooperative and GSK INVESTMENTS member) and a buyer for commodity aggregation at GSK INVESTMENTS certified warehouses.
  • Specified details include commodity type, grades, quantity, price, delivery date, and amount.
  • The issuance of e-WRs to the seller upon commodity delivery.
  • The creation of forward contract trade instruments on our trading system, facilitating buy and sell orders.

GSK Investments’ auction trading allows sellers to engage with multiple buyers:

  • Sellers coordinate with our trading team to offer a specified quantity of their commodities.
  • We list these commodities on our trading board, enabling multiple buyers to place bids.
  • Delivery and settlement are conducted on a T+2 basis.

Auction Contract Trading