SIOTA Revision Procedure
A primary objective of globalORE is to initiate and promote development of a platform for the physical trading of iron ore on a bilateral / OTC basis ("Platform").
The development of a standard iron ore contract and standard specifications for iron ore (SIOTA™) is indispensable to the success of the Platform. In particular, it is necessary to create the liquidity any robust and reliable marketplace needs, maximising both the confidence of its users and the efficiencies of using the Platform.
globalORE has initiated drafting of SIOTA™, but acknowledges that SIOTA™ must contain meet the needs of all Platform users. Terms must be balanced from the perspective of both sellers and buyers of iron ore.
globalORE will therefore periodically canvas opinions of market participants on an on-going bilateral basis and periodically in open discussion forums. This will allow relevant points of contention to be debated and discussed with market participants, so a balanced view can be formulated for the final SIOTA™ and any later substantial changes.
Shareholders and the Board of Directors do not influence the development of SIOTA™ other than through the channels open to market participants.
REVISION PROCEDURE FOR SIOTA™
The process updating SIOTA™ and, when appropriate, for convening forums follows a structured format. Please note that the timing references and format are for guidance only and are not intended to reflect a definitive timescale.
| Week 1: | The globalORE SIOTA™ review committee, consisting of representatives appointed by globalORE ("Review Committee") announces its intention to update and review SIOTA™. The scope of the review is clearly defined, and an agenda of issues to be addressed is published.
The Review Committee will determine whether consultation via a forum is appropriate, and if so, announce the date of such forum(s). Forums will only be convened where they are strictly necessary to agree/settle changes to SIOTA. The Review Committee may also appoint a Review Committee Chairman and/or an external law firm to work with the Review Committee. If the Review Committee determines to convene a forum, it will appoint a Chairman to chair that forum. |
|
| Week 2-4: | Market participants are invited to submit comments and propose solutions to the issues outlined in the agenda; | |
| Week 5: | Where deemed necessary by the Review Committee, either at the outset or following receipt of written comments, a forum is held. The Review Committee Chairman acts as moderator.
Feedback submitted prior to the forum on the agenda points may be used as a basis for debating each issue. Decisions on the most appropriate balanced solution will be sought and achieved by consensus wherever possible. Minutes will be taken and published on the globalORE website. Sound recording equipment may be made available to record the forum debates; |
|
| Week 6: | Following the forum (if any) or the deadline for written comments, the Review Committee may appoint a Drafting Committee, composed of a representative mix from the producer, consumer and trader community; | |
| Week 7-9: | The Drafting Committee may work alongside the external law firm in order to finalise the amendments to SIOTA™; | |
| Week 10-11: | First draft of SIOTA™ changes published on globalORE website and market participants invited to submit further feedback. Depending on the extent of the changes proposed and the reactions of market participants, a number of drafts may be issued over a longer period. Updates will be issued market participants; | |
| Week 12-13¹: | Final draft of SIOTA™ published on globalORE website; | |
| Week 14: | Updated version of SIOTA™ goes live for trading. | |
¹Indicative timing on the basis of a single consultation draft.
