Iran Mercantile Exchange Company Public Joint Stock Company (Iran)

The Main Activity of the Company is Finance activities and public Finance service and securities based on goods accepted by Iranian and non-Iranian individuals in accordance with the law and regulations.
The Company was established as public Joint Stock Company on 22 November 2005 and registered under a regesteration number 301984 on 24 July 2007.
The Company started its activity on 23 September 2007.
The Company was listed in Iran Fara Bourse on 4 October 2011.
The Company listed in Tehran stock exchange First market secondary board on 31 July 2018.
The Company was delisted from Iran Fara Bourse on 15 January 2019.
The Company changed it is Isin from IRO7KLAP0001 to IRO1KALA0001.
Services to the Market
Various sectors of economy and national industry benefit from the exchange operation. The scope of the services is as under:
- Performing as the first market providing access to the initial offering of the listed commodities
- Price discovery and price making for the OTC, secondary markets and the end users
- Providing venue for government sales and procurement purchases
- Providing Trading platform and user interface
- Providing Clearing Settlement services
- Risk management
- Technology services
- Training and education of the market participants
Products of The company are Various products and commodities are listed and traded in IME which are categorized in three classifications:
Industrial Products and Commodities: the ferrous and non-ferrous metals such as Steel, Copper, Aluminum, Zinc and Lead in various form, dimension and sizes, different types of Cement, Coke, Precious Metals Concentrate, and other basic products are traded in the industrial trading session from 10:30 to 12:00 (+3.5 GMT), at the trading floor through semi electronic open outcry.
Gold: gold bullions having different fineness from 999.9 to 900, are traded from 12:00 to 12:30 in the trading floor
Oil Products and Petrochemicals: oil related products range from Bitumen, Base oil, Crude Oil, Fuel Oil, RPO, carbon black, chemical products and petrochemicals like PP, PE, LDPE, LLDPE, Aromatics, SBR, PS, MS, and many others. The trades in this group are carried out from 13:30 to 16:00
Agricultural :the agricultural products traded in IMErange from cereals to oilseeds to oilcakes and other grains and products like wheat, feed wheat, feed barley, yellow corn, maize, raisin, lentil, chick peas, sugar, meat, eggs, saffron, pistachio, traded in the fully electronic multi-commodity trading system.
Multi-Commodity: All agriculture products and some oil products like Bitumen, VB and Lubcuts are traded in the multi-commodity system from12:30 to 12:50 .
Gold Coin Futures: traded as one of the most active and successful underlying assets in the futures contracts in IME. Trading hour ranges from 10:00 to 18:00 .
Members
There are 70 listed brokerage companies in IME who are the members of the exchange licensed by the market regulator, the Securities and Exchange Organization (www.seo.ir). The brokers are authorized to trade on behalf of the clients and settle and clear the contracts for them. For further information about the brokers, their ranking and performance visit www.ime.co.ir/brokers
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 Floors
1. Local Trading Floor
Place: Tehran
Trading Groups: Metals and Mines, Oil and Petrochemical, Agricultural Products, Futures Gold
2. Export Trading Floor
Export Trading Floor:
Place: Kish Island (Persian Gulf)
Trading Groups:
Metals and Mines
Oil and Petrochemical,
Agricultural Products

Trading Groups:
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 AFM (Association of Futures Markets) since 2007
- Signing MoU with Belarusian Universal Commodity Exchange (BUCE) in 2012
- Signing MoU with Kazakhstan Exchange (BEREKET) in 2012
- Holding on site training courses for FEAS
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.
Futures Trading:
According to the trading rules of the futures market, futures trading is broker-based so the clients must place their orders as per contract specification with one of the brokers licensed for futures trading. The initial margins are paid by the clients to their own specific account code named in the name of the clients but the clearing house is the sole authority for transferring the margins or other charges and fees among the client accounts. The bid and orders are placed electronically in quos waiting for their identical price to be matched. During the course of trading the clients are in contact with their brokers adjusting their bid or price based on the price information, volatility factors and the news in the national or international markets. Trading commences dynamically from 10:00 to 18:00 and by matching of the prices of bids and asks open positions or open interests are formed which may remain up to the end of the trading session or are offset and closed by the broker in the clients request. At the end of the trading hour a daily settlement price is calculated and announced by the clearing house for the settlement of the contracts and clearing the risky accounts. The C/H issues margin calls for the lower-than-the-maintenance amount client accounts to bring the amount of their account to the initial margin level. At the end of the contract month those clients who are interested in physical delivery of the underlying asset may take or make delivery of the commodity subject of the contract. To become a customer of the futures market, one shall follow the below process:
- 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
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.
The Company s Vision and Mission:
The Company s vision is to be the dominant price-setter for basic commodities and intermediate raw materials in the region as well as the preferred option for producers to meet their financing needs and to hedge their commercial risks.
In line with Iran's 20-year vision plan and in order to pay its share of contribution to the country's capital market, IME has been relying on an efficient organizational structure, taking advantage of state-of-the art technologies , new and varied financial instruments as well as risk management with a view to enhancing market and product diversity, defining new standards, increasing transparency, facilitating processes, improving its position in the society and also becoming a price discovery reference in the country and the region, in pursuance of being recognized as a highly-credited exchange across the world.
Quality Policies
The Company considering its quality policies based on the fundamental concepts in quality management such as Customer Focus, Continuous Improvement, Value of Every Associate, has adopted ISO 9001:2000 as one of its procedures to develop the quality of management activities and following goals like: Content Customers, Higher Revenues, Lower Costs and Versed Employees.
The Company Main Quality Policies are as below:
1- Setting perspectives and codification of transparent long-term and mid-term goals,
2- Setting annual goals and management approach based on objectives and results,
3- Employing scientific methods in the quality management procedure,
4-Establishing a logical, consistent and coherent connection among market participants, organizations influencing IME, the media, shareholders and employees activities,
5- Identifying and meeting the needs of active and potential market participants, improving standards and efforts to enhance quality of services,
6- Providing a competitive, transparent and fair market for the activities of producers, suppliers and customers of the listed commodities in IME
7- Expanding services and creating diversity in trading instruments including a variety of product-based securities tailored to the needs of market participants
8- Providing underpinning for utilizing the risk management and fair price discovery instruments
9- Creating sustainable competitive advantages in order to increase the company s capability to act in international arena,
10- Endeavoring to build confidence and improve the company s reputation,
11- Attracting market participants and increasing the continuous penetration rate in exchange inside and outside of Iran,
12- Expanding electronic trading as the main platform in IME in accordance with the development of infrastructure in Iran,
13- Developing international activities so as to gain the right position in the global capital market,
14- Improving knowledge and skills level of employees through systematic training,
15- Attracting and developing employees participation in corporate governance in order to enhance their productivity and shar the results with them,
Strengthening the teamwork spirit among the staff to create evolution in IME.
Products
At the moment different oil by-products including bitumen of different grades, sulfur, chemicals. Gas liquids and many others are offered and traded in the export trading floor. The commodity groups are listed as follows:

Oil products
Bitumen
Fuel
Base oil
RPO
Paraffin Wax

Petrochemicals
Polymers
Aromatics

Chemicals
Sulfur
Methanol
Ethanol

Destinations
Europe, Africa, Middle East, East Asia, South East Asia, Persian Gulf,

Volume and Value:
More than 4 million MT products are traded annually in the export trading floor of IME