Cooperation between the stock exchanges as members of the Interexchange Electronic Union (IEU) would offer them several advantages including increase in the value and volume of trade exchange, connection of member stock exchanges to trans-regional markets, and fair price discovery process, said Ali Salehabadi, the CEO of the Securities and Exchange Organization of Iran (SEO).
Salehabadi made the comment on Saturday in Tehran, during the inauguration of the second meeting of the mercantile exchanges of the CIS and Eastern European countries.
Iran’s capital market is one of the most advanced markets in the region in terms of variety in investment tools such as Islamic bonds, derivatives, and future contracts, said Salehabadi.
The event will focus on finding effective ways of applying financial instruments to international trade, reinvigorating international commerce, and finding new markets with reference to mercantile exchanges. Moreover, strengthening international contracts and the importance of electronic trade in exploring global business interactions will also be discussed at the conference.
The Interexchange Electronic Union (IEU) is the union of legal entities of exchange structures, which acts in a virtual electronic field and serves as a non-commercial organization. The IEU also acts in the interexchange commodity market of interested countries with voluntary membership.It is an international organization, which unites seven commodity exchanges of five countries: Armenia (YERCOMEX), Belarus (BUCE), Kazakhstan (ICEX “Kazakhstan”, CEX “Kaspiy”), Kyrgyzstan (KUCEX), Ukraine (UCEX, “Agrarian Commodity Exchange” Cabinet of Ministers of Ukraine), and two commodity distribution systems from Armenia (Clearing House UCDLE) and Belarus.
Iran is set to become a formal member of the IEU with the aim of improving its commercial interactions with the CIS and East European countries. This is expected to enhance the Iranian capital market by increasing the level of trade and bringing more transparency to the market.
IEU Interested in IME Metals, Oil
The head of the Interchange Electronic Union (IEU) has expressed the union’s interest to initiate proceedings with the Iran Mercantile Exchange (IME) on precious metals, oil, gas and agricultural commodities, SENA reported.
Speaking at the inauguration ceremony of the second meeting of the mercantile exchanges of the CIS and Eastern European countries in Tehran, Grigor Vardikian announced member states are all interested in the commodities offered on the IME, while he put the precious metals, oil, gas and agricultural commodities in spotlight.
“We flagged the IME, when we noticed that Iran had signed a MoU with Belarusian Universal Commodity Exchange (BUCX) in 2012,” adding that Iran enjoys 24 years of experience in exchanging activities hence it was chosen to host the meeting.
Addressing the IME’s turnover, Grigor Vardakian said the exchange accounts for about 12 percent of Iran’s Gross Domestic Products (GDP), a crucial reason for us to underscore the importance of cooperation with the IME.
He went on to note that the unions’ trade covered 15 different types of commodities. He also noted that the third round of meetings will be held in the Russian capital Moscow next year.
