IME at a Glance

 

 Iran Mercantile Exchange was established on September 20, 2007 in accordance with article 95 of the new law of the Securities Market of the Islamic Republic of Iran. Prior to IME formation, there were two main commodity exchanges, the Iran Agricultural Commodity Exchange and the Tehran Metal Exchange, operating in the Iranian capital market providing physical sopt trade services to the traders and industrial sector. To bring about sinergy and to enhance transparency, the two exchanges merged to form IME in April 2007 before official inauguration of the exchange in September that year. The merger turned a new leaf in the Iranian capital market providing endless trading opportunities for the clients in and out of the country. Now, a suite of trading, hedging and financing instruments and an array of efficient market solutions are on the shelf for a wide range of stakeholders from manufacturing sector to equity investors.

 

 

 

IME Services to the Market

 

Various sectors of economy and national industry benefit from the exchange operation. The scope of the services are:

  - Raw material producers like steel mills, copper refineries, aluminum factories, petrochemical plants and producers offer their commodities on the IME spot platform to benefit from selling their produce to a diverse range of smelters, downstream manufacturers and traders who purchase their raw material from this market. Due to transparency of trades and high liquidity of the market, the prices of the exchange are reference for government and lower markets.

  - Side market solutions for the non exchange-listed assets covering all types of physical or intellectual property trades.

  - CDR trades and warehous services

  - Tender and auction platforms

  - Trading technology backoffice and interface

  - Clearing, Settlement and Physical Delivery

  - Derivatives contracts and Risk management

  - Financial instruments/ Commodity Funds

  - Registration and KYC

  - Arbitration

  - Training and education

 

Markets and Products

  -  Spot Market

 

      - Main Trading Floor

 

Industrial Products

 

 

Steel sections like rebars, slab, beam, sheets and coils and railroad steel rails, base metals like Copper, Aluminum, Zinc and Lead in various form, dimension and sizes, different types of Cement, Coke, Precious Metals, and other basic products are traded in this section of the market.

 

Oil Products and Petrochemicals

 

 

The oil related products range from Bitumen, Base oil, RPO, carbon black, chemical products and petrochemicals like PP, PE, LDPE, LLDPE, Aromatics, SBR, PS, MS, and likes of them.

 

Agricultural Products

 

 

The agricultural products traded in IME range from saffron, cumin seeds, raisins, dates, pistachios and grains like wheat, feed wheat, feed barley, yellow corn, maize, lentil, chick peas, and softs like sugar that are traded in the electronic multi-commodity trading platform of the spot market.

Saffron, cumin seeds and pistachios have robust derivatives market. 

     

      - Export ring

      - Side Market

      - CDR trades

      - Premium trades

      - Tender and open auction

 

  -  Derivatives Market

       - Futures contracts

Futures market of the IME trades saffron, cumin seeds, pistachios and silver grains (pellets). For start trading, clients need to contact a broker to register with the exchange and get trading ID. Once the trading code issued, buyers can order and trade or remain to get delivery of the underlying asset at the maturity. 

  -  Opening account with IME clearing house via a broker

  -  Initial margin payment/ placing orders /confirming the price or validity of the order and matching the orders based on the price and the time of order placed and registered in the order book of the client and exchange

  -  Delivery of the underlying asset at sellers-buyers option

       - Options contracts

 

 

  -  Financial Market

       - SPS

       - Commodity funds

 

 

 

 

 

Member brokers

There are 90 listed brokerage firms in the IME who are licensed by the market regulator, the Securities and Exchange Organization (SEO). The brokers are authorized to trade on behalf of the clients and settle the contracts with the clearing house of the exchange.

 

Offerings and Orders:

Offerings are the commodities in the spot market are announced and notified 24 hours, before the trading takes place, through the exchange website www.ime.co.ir/offerings so the sellers and clients would be able to place their orders with the brokers and rest assured for trading to be matched and cleared.

In the derivatives market the clients order their trades as per specifications of the futures contract and in accordance to the order types specified in terms of order validity and the price. Around 55 brokerage firms are licensed to trade futures for their clients. At the same time there 4 consecutive contract months issued for the investors.

 

 

Trading

Spot Trading Resulting in Physical Delivery:

Based on the settlement and clearing terms and conditions mentioned in the offering notice, the industrial, petroleum and agricultural products and commodities are traded in following mechanisms:

   -  Cash trades:  It is defined as prompt cash payment against taking prompt delivery. After matching the trade, the buyer shall pay the full amount of the contract value. The clearing house issues the warehouse warrant (receipt) and the customer takes the delivery of the commodity within 72  hours or more but limited to 10 days as per offering notice delivery information.

  -  Forward: It is prompt payment against forward date delivery. The client pays in advance the contract value effective after matching the trade and receives the commodity by virtue of the warrant issued by the clearing house within the period specified in the offering notice on delivery information. The seller receives the contract value within 72 hours or within the time specified in the offering notice but not later than 10 days. The offering details and delivery date is also announced to the brokers by the trading floor supervisor before the trade.

  -  Credit: It functions as deferred payment against prompt delivery. In this type of transaction, the buyer pays in different payment according to the terms stated in the notice of offering and receives the commodity in advance after matching the trade and based on the warrant issued by the clearing house. The seller shall receive money from the clearing house within the period specified in the notice of offering.

The Built-in Clearing House: the clearing house is the counter-party of the trade partners, which is assigned to clear the contracts and ensuring the settlement and delivery where applied.

 

International Presence

Iran Mercantile Exchange has planned to develop its activities and complex trading system via strengthening its international presence in Middle East markets, which are one of the hot spots in the financial markets and within world-class exchanges. Regarding this fact, here is a list of developing activities:

  -  Full member of the Association of Futures Markets (AFM)

  -  Observer in FEAS

  -  Affiliate in WFE

 

Top Subjects | All News

 

IME Monthly Report Volume of Trades Rose by 11% Within the month ending on 22nd of July, 2021, the IME witnessed trade of 4,021,000 tonnes of commodities worth more than 1,560 million USD, showing a growth of 11% in volume of trades as compared to the previous month.

IME Exports Insulation, Bitumen and Slack Wax On Monday, July 26, 2021, the IME witnessed trade of 23,200 tonnes of bitumen, 110 tonnes of insulation and 234 tonnes of slack wax on its export pit.

Nearly 895,000 Tonnes of Commodities Changed hands on Iran Mercantile Exchange Within the week ending on the 16th of July, 2021, the IME witnessed trade of 894,604 tonnes of commodities with a total trading value of more than 341 million USD.

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