IME to Launch Gold-Backed Futures

Iran Mercantile Exchange will soon launch futures contracts backed by gold exchange-traded funds, the IME deputy head for market development said.
“In diversifying derivative instruments, the IME has conducted feasibility studies and prepared infrastructure to launch gold-backed ETF futures,” Alireza Nasser-Pour was quoted as saying by the Securities and Exchange News Agency.
The first gold EFT futures will make debut on July 3, Naser-Pour said, adding that the IME has already launched two other gold-related financial instruments to enable safe investment in gold.
A futures contract is a standardized, legal agreement to buy or sell an asset at a predetermined price at a specified time in the future. At the specified date, the buyer must purchase the asset and the seller must sell at the agreed-upon price, regardless of the current market price at the expiration date of the contract.