Iran Fara Bourse Case Study
SME Market
A considerable amount of growth in emerging economies is dependent upon SMEs and these tiny cells of economy build up a huge portion of domestic production and provide enormous employment opportunities. These types of enterprises have a better position attracting foreign investments and have already gained attention.
We have around 80 thousand SMEs and 8 thousand Medium and Large Enterprises and 70% of employment and 50% of GDP are provided by the SMEs.
Iran Fara Bourse SME Market has been launched in 2016. We have had more than 200 admission requests in this market and 2 companies are already admitted. Companies admitted in this market must be at least one-year-old and their owners’ equity must range between 25 thousand and 12.5 million USD. We welcome all institutional and other professional investors in this market since there is a bigger risk and of course a bigger interest yield for the market participants.
Also in order to facilitate more investment in this market, the minimum amount of investment required which is 125 thousand USD will be reduced in the near future. The settlement is conducted T+3 in this market just as other equity markets in Iran.
We have development plans for this particular market and we are seeking international cooperation with prosperous SME markets in this regard.
Derivatives Market
Primarily, the derivatives’ market has been launched last year together with the options market. The offered options were based on equity and ITBs (Islamic Tresury Bills).
First, we started to design the new market for the derivatives in Iran where we have faced a lot of barriers and necessities in terms of Regulation and Technology.
Alongside with our other respected counterparts, we tried our best to establish this market and in this particular moment, I am proud to announce that IFB has developed its own online trading and settlement system for its Derivatives market.
Naturally, we have not expected high volatility and volumes during the introduction phases of the Derivatives Market. The fact is that the Market players including the Investors, Intermediaries and even the issuers need more awareness and preparation. And yet, it is our highest priority to enrich the derivatives market through launching new derivatives on various financial instruments.
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Federation of Euro-Asian Stock Exchanges
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