A Global Solution

A Global Solution

Recipco’s proprietary solution to facilitate trading capacity (i.e., goods and services) and to deliver on the value proposition includes:

• A liquid unit of exchange called the Universal Trading Unit or UTU™;
• A private, Internet-based marketplace (the Recipco Capacity Exchange); and
• An entity that issues and provides economic backing to the UTU™ (called RecipcoClear).

This integrated solution provides a reliable, efficient and liquid wholesale marketplace, which, like trade exchanges or commodity exchanges, enables buyers and sellers to more easily discover each other and then communicate, negotiate, transact and settle.
Examples of capacity that Members can trade through the Recipco Capacity Exchange include perishables such as unsold hotel rooms, airline seats an media advertising, as well as telecom bandwidth, idle printing press time, unutilized manufacturing production and less obvious commodities like oil, jet fuel and metals. Recipco has evolved out of extensive international research and development conducted by a team of executives, advisors, consultants and industry sector specialists who have broad experience with leading organizations in global trading, Internet commerce, financial markets, securities and commodities exchanges and technology.
The overall Recipco business model was designed by market professionals and practitioners in partnership with a talented group of advisors to provide a robust, secure and credible marketplace for non-monetary trade.

Fundamental Industry Sectors and Balanced Economy

Recipco ensures liquidity by providing and maintaining a balanced economy in which Members of the Recipco Capacity Exchange can consistently fulfil their ongoing procurement requirements. Liquidity is built by focusing listing efforts on targetted fundamental industry sectors, thus avoiding the congestion of illiquid products. Significant producers within these sectors can manage variances in their production and economic cycles by exchanging their respective capacities.

These fundamental industry sectors are:

• Energy (electricity, fuel oil, natural gas)
• Media (print, radio, TV, outdoor)
• Telecommunications (wireless, satellite, bandwidth, Internet services, network services)
• Travel (hotels, airlines, auto, rental)
• Transportation (shipping, courier, trucking, rail, air freight)
• Printing (sheet fed, web)
• Paper and associated products (office supplies, equipment, bulk paper)

How a Trade Works

The following example illustrates how three corporate Exchange Members from three different industry sectors conduct a trade on the Recipco Capacity Exchange:

• MediaCo first sells advertising to TravelCo to obtain UTU™s in its account.
• UTU™s available in MediaCo's account are used to purchase network time from TelCo.
• TelCo can use its UTU™s to purchase airline seats from TravelCo.