Question: What is Natural Fibre Exchange (NFX)?
Answer: NFX is an online trading platform established to connect buyers and sellers, while impartially balancing supply and demand. NFX provides trusted and transparent market-based reference prices and an efficient selling mechanism for wool and other natural fibre products sourced from New Zealand and other supply markets.
Question: Who is the NFX Trading Manager?
Answer: The Trading Manager is CRA International, Inc. d/b/a Charles River Associates (CRA), an economics, financial, and management consulting services firm listed on the NASDAQ and based in Boston, USA. CRA is known globally for its specialist knowledge and expertise in the design of auctions and other trading systems. In addition to the design of the bidding format, CRA manages each trading event. More information about the Trading Manager can be found at www.trading.crai.com.
Question: Who can participate in the trading events?
Answer: Any organization can buy or sell natural fibre products at the NFX trading events provided they are registered with NFX as a bidder or seller. For more information, visit the Join NFX page on this site that explains how to become a qualified bidder or seller.
Question: How do buyers become eligible to participate as bidders in trading events?
Answer: If not already done so, a buyer (i.e., prospective bidder) must download and submit the NFX Participation Agreement (available on this site). When submitting their NFX Participation Agreement, the bidder can indicate which sellers they would like to purchase from (the default is all sellers). The Trading Manager informs those sellers that the buyer would like to purchase from the seller in NFX trading events. The seller can contact the buyer if they wish. Before each trading event, a seller informs CRA which bidders it will allow to bid on the seller’s lots and if the seller wants to impose a bid limit on each bidder.
To submit your NFX Participation Agreement, follow the steps outlined on the Join NFX page of this Information Website.
Question: Can bidders buy product from any seller?
Answer: There are two requirements: (1) If not already done so, a bidder must download and submit the NFX Participation Agreement (available on this site) – in submitting the Participation Agreement bidders can indicate which sellers they would like to purchase from, and (2) Prior to each trading event, each seller must inform the Trading Manager which bidders the seller will allow to bid on the seller’s lots.
Question: Why become a seller on NFX?
Answer: NFX brings buyers and sellers together and provides an efficient process for determining a price agreed to by buyers and sellers. Participating on NFX as a seller does not interfere with customer relations; in fact, it strengthens them through more regular contact without bargaining tension. Sellers retain the key relationship, including continuing to manage all aspects of contract execution.
Each seller determines which bidders they are willing to trade with and are encouraged to market and promote their products to maximize bidder interest.
NFX closing prices represent arms-length prices for commodity products agreed to between buyers and sellers, thus they provide a foundation for each seller to measure their value-added activities. Sellers can be confident that their product will be sold to those who value their product the most, enabling them to focus more of their effort on creating additional value for their businesses and customers.
Question: Why participate as a buyer in the NFX trading events?
Answer: We believe that customers are attracted to participate in the trading events because the NFX platform offers them:
Price clarity — Customers can clearly observe natural fibre commodity pricing
Supply certainty — Customers know they can always obtain supply
Supply transparency — Customers will not acquire product in a trading event only if they choose not to pay the going price for the product
Price certainty — Customers can conduct their business with known pricing for future delivery
Efficient contracting — Customers can procure natural fibre products quickly and easily
Supply flexibility — Customers decide when to take delivery by choosing which trading events to participate in and which lots to bid on in a trading event
Question: Can I be guaranteed to get supply?
Answer: Yes, as long as you stay active in the trading event through the final round of the trading event. You remain active on a lot if you submit a new bid for the lot in the bidding round or if you are the standing high bidder for the lot entering the bidding round. (The standing high bidder on a lot is the bidder who has submitted the highest price on the lot so far in the trading event.)
Question: How can I get my questions answered?
Answer: If you are a registered user on this Information Website, questions can be submitted through the Submit a Question page of this site. If you are not a registered user on the site, you will be prompted to create a profile prior to submitting your question.
Question: Can a company participate both as a seller and a buyer/bidder in a trading event? Can a seller bid on lots that it owns?
Answer: Individuals in the role as a seller for the company (“seller individuals”) and individuals in the role as a buyer/bidder for the company (“buyer individuals”) can participate in a trading event. They must be different individuals, a dual buyer/seller confidentiality document must be signed (available for download from the Documents page of the NFX Information Website), and the company must have protocols in place to ensure the following rules are enforced. Seller individuals are not allowed to be informed, directly or indirectly, of other sellers or the lots of other sellers in the trading event. For example, seller individuals cannot see or have any information about the lots of other sellers including starting prices, round-by-round prices, bids on those sellers’ lots, etc. Pursuant to the Trading Event Rules, a seller is not allowed to bid on lots that it owns. Thus, the buyer individuals of a company participating both as a seller and a buyer/bidder in a trading event are not allowed to bid on the lots that the company owns.
Question: Can any seller of wool sell directly on the NFX platform, or is an agent required?
Answer: To sell directly on the NFX platform, a seller must comply with New Zealand Wool industry testing, type description, electronic data communication, and other selling standards.