Unveiling of single share futures contract for 3 symbols in Tehran Stock Exchange – Tejaratnews

According to Tejarat News, the vice president of operations of the Tehran Stock Exchange announced the unveiling of single share futures on the stock exchange. This contract is supposed to start on Wednesday, June 17.

The vice president of Tehran Stock Exchange Market Operations said: On Wednesday, the single share futures contract on the 3 stock exchange symbols Shasta, Shetran and Gam of Sadarat Bank will be unveiled, and the number of these symbols will be increased in the coming months according to the market’s needs.

Mehdi Zamani Sabzi, Vice President of Market Operations of Tehran Stock Exchange, referring to the history of setting up stock futures contracts, said: In the past years, futures contracts were set up on stock portfolios in Tehran Stock Exchange, and these contracts were defined in banking, oil, automobile and metal products, but Due to software and conceptual complications, these contracts were not accepted. For this reason, Tehran Stock Exchange decided to introduce futures contracts on single symbols so that a futures contract can be defined on any basic asset that is traded on the stock exchange (including stocks, investment fund units, debt securities).

He stated: We have been pursuing the implementation of this plan since last year and negotiations were held with Central Depository Company, Tehran Stock Exchange Technology Management Company, as well as infrastructure service providers OMS, Sahra Software Company, Rayan Hamafza, and Tadbir Pardaz until these contracts were finalized. reach the implementation stage.

The director of operations of the Tehran Stock Exchange added: According to the plan, on Wednesday, the single share futures contract will be unveiled on the 3 stock exchange symbols Shasta, Shatran and Saderat Bank, and in the coming months, the number of these symbols will be increased according to the needs of the market.

Zamani continued: Currently, we have option contracts in the derivatives market of Tehran Stock Exchange, and future contracts will be added to this market. Symbols are selected based on parameters such as favorable liquidity, volume and high value of transactions, maximum transparency in order to minimize the stoppage of the symbol, and with the launch of futures contracts, bilateral transactions on symbols will actually be strengthened. Also, by presenting these contracts along with the trading option tool, which has been well received and has a significant volume and value, the demand of the capital market activists to complete the derivatives market will be fulfilled. In such a situation, the profits of the activists are not necessarily dependent on the rising market, and the professionals who use this tool by analyzing and adopting the combined strategies of cash, futures and options can also earn returns in the downward trends.

Once, he pointed out the impact of single share futures contracts on stock cash transactions and said: The type of derivative contracts is different from the traditional stock market and the players of this market will probably be different. But classically, the larger market affects the smaller market, and we will certainly offer single-share futures contracts in such a way that this market does not become larger than the traditional market.

The operations manager of the Tehran Stock Exchange stated: The definition of the open position ceiling at the level of the market, broker and customer is to control this issue. In addition, the future market participants will also be active in this market according to the analysis and prediction of the share status at the time of maturity and the expected rate of return and will be in the position of buying or selling.

In the end, he said: the daily settlement mechanism, the initial security deposit, the required security deposit and the margin call will cover the risk of default (the risk of not fulfilling obligations at the due date).

Source: Senate