CHICAGO - The Chicago Board of Trade opened its computerized cash trading system for recycled materials, including two kinds of plastic, as scheduled Oct. 17. Patrick Videll, economist for the board, said 60 subscribers signed on to the system in its first day of operation, a number he described as encouraging.
``Besides those who went on-line to work in the system, we also had numerous `guests' who logged on to see how the system works and what information was available,'' he said. ``We also had 25 users post listings of materials they had to buy or sell, and even had one deal made.''
The system offers the chance for subscribers to carry on cash trades and make customer contacts by computer for scrap paper, glass, metal and high density polyethylene and PET. The two-tiered access system allows users to subscribe, by paying a $1,000 yearly fee per person per company, or to ``visit'' the system free.
The subscribers have full access to information about materials and prices, while nonsubscribers have access to general information about what commodities are being traded, and the players involved.
``In about a month, we will be issuing reports on the activities, and on the pricing data that are available from the trades,'' Videll said.
Trades made on the on-line system are eligible for the Chicago Board of Trade's dispute resolution program, in which the American Arbitration Association is called in to arbitrate any contested deals.
Videll said the actual deal made the first day the system was operating involved a large lumber and paper products company located in the Northwest, and an unidentified end user in the East.
``It shows that there is interest across the country in this, and the ability to get deals done using the system,'' Videll said.