In order to elevate the Capital Market’s position in Iran’s economy and organize Securities Market, according to Act No. 90 of the fifth development plan, all post-trade services of Iran commodities exchange including cash market, advance purchase, credit also futures and option contracts (which will operate in the commodities exchange in near future), will all be centralized in Central Securities Depository of Iran (CSDI).
To increase the efficiency and Straight Through Processing of various post-trade services, Central Securities Depository of Iran is determined to perform the settlement registry and Corporate Actions on a fully electronic and dematerialized basis.
CSDI has a pervasive plan under construction on Data Dissemination to provide members and market activists with required information and reports; aiming at facilitating Mobile Trading, Online Trading, and Virtual Trading, the first phase of which has been delivered for online trades.
In order to increase functionality and eliminate risks of settlement and operations, CSDI has decided to establish "Professional Bank of Capital Market", in which Settlement of Trades, various Financial Tools and Corporate Actions Affairs will all be performed.
Due to the ever-increasing growth of financial markets followed by an increase in the activities of its fundamental institutions, CSDI intends to acquire a pervasive Software (entrusted to a contractor), to cover the post-trade services of markets in which CSDI is responsible for their Settlement.
CSDI which is responsible for clearing & settlement of Tehran Stock Exchange (TSE) and OTC trades, in order to cover settlement risks, has proposed the guarantee fund scheme which will be indispensable after approval of legal authorities. Also CSDI is ready to generalize the guarantee fund to the commodities stock exchange.
In addition to the settlement guarantee fund, CSDI will examine feasibility of using other risk management mechanisms and handling clearing members’ default to optimize risk covering mechanisms as well as moving towards becoming a CCP.
CSDI is a major shareholder of "Capital Market Central Asset Management Co." (Private joint stock co.) which has been established in the current year. Executive actions of this company in delivering activities of intermediary institutions for financing through Islamic financial tools (Sukuk) will begin the next year.