The Securities and Exchange Organization (SEO) has predicted that 22 professional market maker funds are set to join the capital market to help major companies at the Tehran Stock Exchange and over-the-counter markets.
The head of financial institutions department at the SEO, Behnam Chavoshi, highlighted the important role the market maker funds can play in providing finance and facilitating trades.
“Market maker funds have an undeniable role in any developed capital market,” said Chavoshi, adding that two such funds have already started their activities -- Eghtesad Novin and Parsian.
Twenty other market maker funds are in the process of obtaining the necessary licenses, he added.
The licenses are granted to market making funds in order to make the trades more flexible and also to minimize trading costs. Issuance of the licenses for the funds does not prevent traders from using the services provided by brokerage firms, he said.
The official further noted that apart from the funds which are acquiring the licenses; there will also be dozens of other funds which have applied for such licenses.
