|How NFX Works |
Natural Fibre Exchange (NFX) operates bi-weekly Trading Events on Tuesdays. All products in a Trading Event will be on offer simultaneously over multiple rounds of bidding starting at 2:00pm New Zealand Time (1:00am or 2:00am Universal Time) and continuing until there is a round with no new bids. This generally will take between one to two hours.
NFX is open to all industry parties and service providers who meet the requirements of the NFX Participation Agreement to be a seller and/or a buyer. As a buyer you also must have pre-approval from a seller to bid on that seller’s products. For more information click here.
A Participant is eligible to purchase product offered by a seller only if prior to the Trading Event the seller specifies a maximum amount (more than zero) that the seller will allow the Participant to bid on for the seller’s products in the Trading Event. As new bidders join the NFX platform, sellers will be advised so that a commercial relationship can be established between each new bidder and relevant participating sellers.
NFX provides a transactional service for discovering the prices at which sellers and buyers agree to transact, while seller and buyer relationships can remain unchanged.
Trading Events will start with a pre-announced starting price… The Bidding Website will open 48 hours prior to the start of the Trading Event. This will provide information on all the lots available for sale, including relevant testing and certification, as well as the bidder’s initial eligibility (or maximum allowed quantity) to bid across all lots.
Each lot will have a starting price set by the seller for that lot and this is the minimum price that can be bid for that lot.
Approved bidders can bid up to their bid limit… Prior to the Trading Event, a seller specifies a “bid limit” for each buyer. This is the maximum amount of the seller’s products that the seller will allow the buyer to bid on and win.
A bidder’s “eligibility” is the maximum amount it can bid on and win across all sellers and all products. Thus, a buyer can place bids on each seller’s products only up to the bid limit that the seller has set for this buyer, and the buyer can bid a total amount across all sellers and products only up to the bidder’s eligibility.
Bidders must participate in each round to retain their eligibility to bid… Except for the last bidding round of the Trading Event, no product is awarded or won at the end of a bidding round.
At the end of each round, the highest bids for each lot are disclosed and all buyers can bid again in the next round to become the buyer with the highest bid price for the round, i.e. the standing high bidder.
Bidders must actively bid, or have standing high bids, in each round to retain their eligibility to continue bidding in future rounds. Bidders without standing high bids cannot stop bidding and return at a later round.
Bidders can choose to switch their bid from one lot to another from round to round so long as their bids for the current round do not exceed the bidder’s eligibility for the round and do not exceed the bid limits the bidder has with each seller. Also, a bidder with a standing high bid on a lot is not allowed to withdraw that standing high bid.
Bidding continues until there are no new bids… In general, after a round with no more bids, the Trading Event will close and the buyers holding the high bids in the preceding round (i.e. the standing high bidders) win the lots.
The seller will invoice the buyer directly… At the conclusion of the Trading Event, successful buyers and sellers will be advised of their respective results and sellers will invoice buyers directly. The total price payable is the applicable winning price plus any additional charges previously agreed between the buyer and seller (e.g., logistics and shipping charges).