Economy, Business And Markets

TSE Link to World's 3rd Biggest Stock Market

TSE Link to World's 3rd Biggest Stock MarketTSE Link to World's 3rd Biggest Stock Market

The Central Securities Depository of Iran (CSDI) signed a memorandum of understanding with the Central Securities Depository of China (CSDC) based on which the Iranian stock market would link to the world's third biggest stock market, SENA reported.

The MoU, signed during the annual meeting of the Asia-Pacific Clearing Union held in Beijing, aims at setting up international investment firms and knowledge transfer programs. According to the report, the memorandum will help develop the stock exchange infrastructures in both countries, whilst also studying the feasibility of joint investment companies in capital markets.

On Sunday, the Tehran Stock Exchange (TSE) launched a new online trading system which enables traders and brokers from any corner of the world to partake in transactions. The new system is also supposed to be connected to other countries by means of 'multi-currency settlement capability' system.

The new software automatically supervises data collection, data analysis and reliability of the information. The goal in establishing the new system is to improve the efficiency and accessibility in the capital market and to maximize data integration and release times.

Close ties between capital markets require securities depository companies in different countries to establish good relations.  A central securities depository (CSD) is a specialist financial organization holding securities such as shares in certificated form so that ownership can be easily transferred through a book entry rather than the transfer of physical certificates.