CHICAGO - The Chicago Board of Trade will introduce its long-awaited on-line Recyclables Exchange Oct. 17, affording recyclers, for the first time, the chance to make standardized deals in glass, paper and two types of plastic commodities. Patrick Videll, a CBOT staff economist, said a second phase of testing the computerized cash trading system is to begin the week of Sept. 11, with actual cash-only trading to begin in about a month.
Testing is being done with the cooperation of several waste haulers, processors, end users and brokers, as well as CBOT personnel. The group is working out final details of the trading system, Videll said.
The crucial question of how the pricing information will be disseminated in the system has not been resolved, but Videll said pricing data will be available in system listings when the project gets under way, or soon after. CBOT also is designing an arrangement in which trade journals and other publications can access system information to publish it.
``This will be a two-tiered system,'' Videll said. ``One tier will be the subscribers, who will be able to post what they have on the electronic bulletin board, or what they are interested in, and actually to make contact with each other.
``The second tier will be view-only access, where anyone, from a college master's degree candidate to a resin producer, can access the system and get informa-tion on deals, but not partici-pate. Users who post buy or sell information will be able to remain anonymous until another subscriber accesses their posting.''
Featured in the system will be categories for baled, flaked and repelletized PET and high density polyethylene, with an additional miscellaneous category for materials like vinyl and waste tires, for which the board has not established standards.
Each listing will contain the material type, quality, quantity, technical data, and a ``flow'' option to allow buyers and sellers to arrange either one-time or continuing contracts.
``Subscribers will be able to access the names and contacts at the posting companies, while the `view only' users will not, and traders will make their own contacts and deals,'' according to Videll.
``Traders will be offered the option of recording their eventual deals, including prices, with the board, which also will give them the ability to submit any disputes to arbitration by the American Arbitration Association, and third-party fact-finding.''
CBOT will charge $1,000 per year for the first subscriber from each company, $500 for the second, third and fourth, and $300 for each additional person.
The system was developed in conjunction with the Seattle-based Clean Washington Center, New York's state Office of Recycling Development in Albany, the Environmental Protection Agency, and the Washington-based National Recycling Coalition.
CBOT plans to unveil the project at NRC's annual meeting the week of Sept. 11 in Kansas City, Mo. Demonstrations will be held in 12 cities around the country both before and after the launch.