EBA calls for improvements in exchange trading

10/ 11/ 2025

On 7 November, experts from the European Business Association took part in an open coordination meeting of representatives from the woodworking and logging industries and commodity exchanges. The meeting, organised by the Association of Exchange and Electronic Platforms, was held on the eve of forward contract trading sessions for timber deliveries scheduled for the first half of 2026, as well as general auctions for the first quarter of 2026. In his address, Yurii Andriiv, Committee Manager at the European Business Association, presented the business community’s position on the need to enhance the system of timber exchange trading. Key challenges for businesses and proposed solutions 1. Preventing speculation on exchanges According to market participants, record price increases for timber were observed in the second and third quarters of 2025, after which a significant number of auction winners refused to collect the lots they had purchased. The business community proposes to suspend unscrupulous buyers—those who collect less than 60% of their purchased volume without valid reason—from participation in trading for at least two quarters, or to introduce penalties for unclaimed volumes. 2. Strengthening supplier accountability There have been frequent cases where suppliers failed to fulfil their contractual obligations, resulting in lost orders for woodworking companies. To address this, businesses suggest introducing a sanctions mechanism that would hold suppliers liable for contract non-performance. 3. Improving the system of guarantee deposits At present, the guarantee deposit does not adequately ensure the fulfilment of contractual obligations. It is proposed to increase the deposit amount and stipulate that it be transferred to the seller once at least 60% of the contract has been fulfilled. This would help minimise situations where buyers purchase only part of the lots without bearing any further responsibility. 4. Enhancing trading transparency Businesses are calling for public access to exchange contracts and disclosure of information about trading participants. This would foster greater trust in the market, ensure fair competition, and reduce the risk of manipulation. In conclusion, while exchange trading remains an effective tool for the sale of timber, it requires further improvement through the involvement of woodworking industry representatives who directly face the system’s practical challenges.

In his address, Yurii Andriiv, Committee Manager at the European Business Association, presented the business community’s position on the need to enhance the system of timber exchange trading.

Key challenges for businesses and proposed solutions

1. Preventing speculation on exchanges

According to market participants, record price increases for timber were observed in the second and third quarters of 2025, after which a significant number of auction winners refused to collect the lots they had purchased.
The business community proposes to suspend unscrupulous buyers—those who collect less than 60% of their purchased volume without valid reason—from participation in trading for at least two quarters, or to introduce penalties for unclaimed volumes.

2. Strengthening supplier accountability

There have been frequent cases where suppliers failed to fulfil their contractual obligations, resulting in lost orders for woodworking companies. To address this, businesses suggest introducing a sanctions mechanism that would hold suppliers liable for contract non-performance.

3. Improving the system of guarantee deposits

At present, the guarantee deposit does not adequately ensure the fulfilment of contractual obligations.
It is proposed to increase the deposit amount and stipulate that it be transferred to the seller once at least 60% of the contract has been fulfilled. This would help minimise situations where buyers purchase only part of the lots without bearing any further responsibility.

4. Enhancing trading transparency

Businesses are calling for public access to exchange contracts and disclosure of information about trading participants. This would foster greater trust in the market, ensure fair competition, and reduce the risk of manipulation.

In conclusion, while exchange trading remains an effective tool for the sale of timber, it requires further improvement through the involvement of woodworking industry representatives who directly face the system’s practical challenges.