As the 2016 En Primeur campaign begins, we are offering a reminder of the process of selling En Primeur (EP) on Liv-ex.
For the 2016 campaign we will be setting the EP selling limit based on a bank guarantee or insurance bond. This should be provided up front at your expense.
Delivery
All EP sold on the exchange must be delivered “..as soon as the wine is available, and at the very latest by the end of May two years following the initial En Primeur offering.”
Bank guarantee
The guarantee must run until the end of June, two years following the initial release for sale (i.e. for selling EP 2016, the guarantee will need to run until the end of June 2019; for EP 2015, until June 2018).
If you wish to sell wine that has in the past been subject to a late release, we may require a longer term on the guarantee.
If you wish to provide a guarantee only at the end of the campaign, due to uncertainty over how much you might sell, we will require a letter from your bank confirming the amount of guarantee they are prepared to offer. In this case we may also require a margin deposit to cover our market risk.
Payment
Where a bank guarantee is in place, payment will be made according to normal terms: Friday after the sale, plus seven days. Otherwise payment will either be made according to normal terms or upon receipt of the bank guarantee, whichever is later.
If you would like to discuss selling EP, or require some draft wording for a bank guarantee, please email Liv-ex Head of Finance Simon Cottee ([email protected]) or speak to your Exchange Manager who will also be able to help.
