FEAS Yearbook FEAS Yearbook 2014 | Page 50

FEDERATION OF EURO-ASIAN STOCK EXCHANGES ANNUAL REPORT JUNE 2013 IRAN MERCANTILE EXCHANGE IME in 2013 once again achieved colorful operating results by 60% increase in value and 20% rise in volume of transactions. Hossein Panahian Managing Director It gives me a great pleasure to introduce Iran Mercantile Exchange as the leading commodity exchange based on the value of commodity physical and futures contracts traded. The demutualized exchange gets credentials from the Ministry of Finance of Iran and acting under auspices of the Securities and Exchange Organization of Iran in compliance to the rules and regulations of the Iranian capital market. Being a self-regulated entity IME offers trading in over 180 commodities in the form of spot and futures contracts from a diverse range of asset classes including metal and mineral, oil- related and petrochemical as well as agriculture products. A majority of these commodities are significant in the Iranian and global context and are also traded on international exchanges. To brief you on our performance I’m privileged to report that IME in 2013 once again achieved colorful operating results by 60% increase in value and 20% rise in volume of transactions. We managed to continue growth in terms of developing exchange infrastructures both in trading technology and human resource. Our team worked resiliently amid restrictions and uncertainties in the international commodity market to deliver benefit for our stakeholders. We engineered our business model to provide Mission Statement Iran Mercantile Exchange being as the foundation for competitive economic orientation assigned to implement transition from traditional market to efficient, organized and self-regulated trading venue is trying it’s best effort, in order to realize the economic causes stated within The Constitution, to render unmatched services to the commodity supply chain across the country via promotion of the information technology infrastructure, development of new financial tools, employing specialized human resource, efficient management, raising awareness and institutionalizing knowledge base practices. PAGE 50 new opportunities and trading instruments in our markets while maintaining the incumbent running system. functionality. In addition, IME has had an inter- sector positive effect for different industries in macroeconomic scale. Last year we prepared the ground for developing new products to our market and we are focusing on diversifying our markets in order to meet the wide range of our customers’ needs. In our metals and minerals market, we managed to list 5 products to reach the total value of the market by 10%. Also in our petrochemical market new listings led to significant rise in volume and value of this market. In agriculture, IME and government are setting new market infrastructure for price discovery and trading of grains and cereals to deal a boost to agriculture sector of the country. Last year IME managed to expand its role as a global price reference in terms of some key products like bitumen, iron ore and steel products. We are quoted right now by Argus, ICIS, Metal bulletin and Steel First. The exchange is set to maintain relations with media worldwide. In terms of role in the national economy, we have managed to contribute significantly to production and manufacturing sector through financing facilities in the form of SALAF contract. The exchange has been successful to eliminate special privileges, providing fair and equal access for all customers and end- users to exchange markets. A diversified range of stakeholders benefit from the exchange operation through hedging and risk mitigation opportunities provided by the exchange to capital and commodity market participants. In terms of transparency and prices we, at IME, have tried our best endeavor to provide maximum transparency through competition based on supply and demand resulting in sound price discovery which is core to the exchange Our financial, trading, and information dissemination services provides the ground for market safety and surety, promotion of standards and maximization of transparency in transactions. We are committed to render maximum best market-wise risk management services to the benefit of all market participants to ensure stakeholders’ growing benefit. Verily, such efforts yield in development of the financial and commodity market throughout the region and growing influential role of IME as a commodity price reference based on trust, confidentiality and information transparency. We hope through interaction and cooperation with international capital market entities and our exchange counterparts around the globe to develop into a full-fledged exchange market by adopting brand-new practices in compliance with the national and internationals rules and regulation to pave the ground to exhibit a pioneering market venue addressing all investment needs of the its clients in and out of the country. Vision In order to play its part in the capital market and in line with the twenty-year vision plan of the Islamic Republic of Iran, Iran Mercantile Exchange, relying on organized corporate systems, employing diversified financial technologies and instruments and risk management has put on the agenda diversification in underlying assets and markets, setting new standards, transparency and easing , promotion of social status, and to become reference in traded prices for the local and international beneficiaries ushering in evolving into a world class exchange.