IME offers a variety of services, including providing access to the initial offering of commodities, pricing for Iran’s Over-the-Counter (OTC), secondary markets and end users, providing a venue for government sales and procurement purchases, facilitating a trading platform and user interface, providing clearing & settlement services, risk management, technology services, and training of market participant.
"Futures" as one of these services is a derivative which can be traded on financial markets. It is a contract that means the buyer (seller) is obligated to buy (sell) an asset at a pre-determined date at a pre-determined price. Futures can be settled either in cash or in actual delivery of the asset.
A future 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 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. 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.
Since the standard trading of futures contracts in the world has been carried in commodity exchange, the first trading of futures contracts on commodity exchange in Iran has been launched on one once gold bullion which was accepted in 2007.
With the launch of futures contracts on the Iranian gold coin (minted by Central Bank of the Islamic Republic of Iran called Bahr-e-Azadi) and start its trading, now almost all futures commodity exchange has been allocated to contracts for Iranian gold coins and the demand in this market is increasing day to day.