Criticism of the restrictions of the stock exchange organization for brokerages
According to Tejarat News, Mohammad Reza Dehghani, regarding the obstacles and problems of the brokerage industry, said: “When we compare the brokerage industry in Iran with the brokerage industry in other parts of the world, we notice structural problems in the country, but the biggest problem that brokerages face.” Are, lack of income diversity.
Criticizing the stock market restrictions for brokerages, he continued: “Being a single product has caused the operating income of brokerages to be severely affected by economic cycles, for example, when the market is booming, brokerages make good incomes, and unfortunately the stock exchange organization that year.” It forms the basis of decision-making to make a number of regulations and reduce the income of brokerages.
He added: “For this reason, during periods of capital market recession, many brokerages are on the margins of losses and are forced to adjust their forces; So brokerages are left with no time to invest in order to provide more and better services in the future.
Rules and regulations prevent various brokerages from making money!
Regarding brokerage restrictions for brokerages, the secretary general of the Brokers’ Association said: “Brokers operating internationally provide a variety of services and less than half of their income is related to transaction fees.”
He added: “But in our country, due to the existing laws and regulations, brokerages can not have various incomes.” The stock exchange organization has limited the range of services that brokerages can provide and has outsourced many activities to other entities, such as investment advisory services or portfolio management.
The slowness of the trading core increases the selling pressure on the stock exchange
Dehghani said: “Another problem is the issue of IT infrastructure, because brokerages in the world have their own free platforms and their competitive advantage is the same as online platforms.” But in the country’s capital market, companies that provide IT services to the market and brokerages are limited.
“The two companies provide services to 90% of the brokerages, so there is a serious risk to the industry when the supplier is a monopoly,” he said. Now, if these services are interrupted or slowed down, the clients will blame the brokerages.
Source: Young Journalist Club
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