Iran Mercantile Exchange
Encyclopedia
Iran Mercantile Exchange (IME) is a commodity exchange
located in Tehran
, Iran
. It was founded in 2006. IME trades in agricultural, industrial and petrochemical products in the spot
and futures markets. It is mainly a domestic or regional market with the ambition to become more international in the future.
and the responsibility of creating this new exchange was delegated to IME Company. The first phase was launched on February 17, 2008 by executing the transactions of petrochemicals and chemicals which has been running successfully and the second phase is on the verge of launching. With the completion of the second phase, crude and by-products of oil can also be traded on the exchange in both Iranian Rial
and major foreign currencies
(except USD).
Kish Island is the venue for trading the oil contracts. It is a free trade zone. The Islamic Republic
also wants to encourage local investors to participate in the oil market as it tries to reduce the state’s role in the country’s energy industry
.
, and the second-largest gas reserves after Russia
.
auction using electronic trading platform
, an interaction of bids and offers made by the buying and selling brokers. Orders, already placed by the clients, are entered in the system by the brokers sitting behind their stations in the trading floor. The system processes the orders and executes the transaction upon matching of the bid and offer prices.
Videos
Commodity exchange
Commodity exchange may refer to:* Commodities exchange, any exchange where various commodities and derivatives products are traded.* Commodity markets, for the markets trading on commodities in general....
located in Tehran
Tehran
Tehran , sometimes spelled Teheran, is the capital of Iran and Tehran Province. With an estimated population of 8,429,807; it is also Iran's largest urban area and city, one of the largest cities in Western Asia, and is the world's 19th largest city.In the 20th century, Tehran was subject to...
, Iran
Iran
Iran , officially the Islamic Republic of Iran , is a country in Southern and Western Asia. The name "Iran" has been in use natively since the Sassanian era and came into use internationally in 1935, before which the country was known to the Western world as Persia...
. It was founded in 2006. IME trades in agricultural, industrial and petrochemical products in the spot
Spot price
The spot price or spot rate of a commodity, a security or a currency is the price that is quoted for immediate settlement . Spot settlement is normally one or two business days from trade date...
and futures markets. It is mainly a domestic or regional market with the ambition to become more international in the future.
History
Tehran Metal Exchange was established in September 2003 as the first mercantile exchange in the country. Later on, Iran Agricultural Exchange was established in September 2004. Subsequently, Tehran Metal Exchange merged with Iran Agricultural Exchange in December 2006 and formed the Iran Mercantile Exchange Company.Oil Bourse
The Government of Iran decided to establish the oil and petrochemicals exchangeIranian oil bourse
The Iranian Oil Bourse International Oil Bourse, Iran Petroleum Exchange Kish Exchange or Oil Bourse in Kish is a commodity exchange which opened on February 17, 2008. It was created by cooperation between Iranian ministries, the Iran Mercantile Exchange and other state and private institutions...
and the responsibility of creating this new exchange was delegated to IME Company. The first phase was launched on February 17, 2008 by executing the transactions of petrochemicals and chemicals which has been running successfully and the second phase is on the verge of launching. With the completion of the second phase, crude and by-products of oil can also be traded on the exchange in both Iranian Rial
Iranian rial
The rial is the currency of Iran. It is subdivided into 100 dinar but, because of the very low current value of the rial, no fraction of the rial is used in accounting....
and major foreign currencies
Foreign exchange market
The foreign exchange market is a global, worldwide decentralized financial market for trading currencies. Financial centers around the world function as anchors of trading between a wide range of different types of buyers and sellers around the clock, with the exception of weekends...
(except USD).
Kish Island is the venue for trading the oil contracts. It is a free trade zone. The Islamic Republic
Islamic republic
Islamic republic is the name given to several states in the Muslim world including the Islamic Republics of Pakistan, Iran, Afghanistan, and Mauritania. Pakistan adopted the title under the constitution of 1956. Mauritania adopted it on 28 November 1958. Iran adopted it after the 1979 Iranian...
also wants to encourage local investors to participate in the oil market as it tries to reduce the state’s role in the country’s energy industry
Petroleum industry in Iran
In 2004 Iran produced 5.1 percent of the world’s total crude oil , which generated revenues of US$25 billion to US$30 billion and was the country’s primary source of foreign currency. At 2006 levels of production, oil proceeds represented about 18.7 percent of gross domestic product . However, the...
.
Supervision and regulation
The Securities and Exchange Organization (SEO) is the sole regulatory entity for the regulation and development of the capital market in Iran.Industrial
- SteelSteelSteel is an alloy that consists mostly of iron and has a carbon content between 0.2% and 2.1% by weight, depending on the grade. Carbon is the most common alloying material for iron, but various other alloying elements are used, such as manganese, chromium, vanadium, and tungsten...
- Aluminum
- CopperCopperCopper is a chemical element with the symbol Cu and atomic number 29. It is a ductile metal with very high thermal and electrical conductivity. Pure copper is soft and malleable; an exposed surface has a reddish-orange tarnish...
- ZincZincZinc , or spelter , is a metallic chemical element; it has the symbol Zn and atomic number 30. It is the first element in group 12 of the periodic table. Zinc is, in some respects, chemically similar to magnesium, because its ion is of similar size and its only common oxidation state is +2...
- LeadLeadLead is a main-group element in the carbon group with the symbol Pb and atomic number 82. Lead is a soft, malleable poor metal. It is also counted as one of the heavy metals. Metallic lead has a bluish-white color after being freshly cut, but it soon tarnishes to a dull grayish color when exposed...
- Precious Metals
- NickelNickelNickel is a chemical element with the chemical symbol Ni and atomic number 28. It is a silvery-white lustrous metal with a slight golden tinge. Nickel belongs to the transition metals and is hard and ductile...
- Industrial & Mineral (including cementCementIn the most general sense of the word, a cement is a binder, a substance that sets and hardens independently, and can bind other materials together. The word "cement" traces to the Romans, who used the term opus caementicium to describe masonry resembling modern concrete that was made from crushed...
)
Petroleum by-products
Iran holds the world's second largest oil reserves after Saudi ArabiaSaudi Arabia
The Kingdom of Saudi Arabia , commonly known in British English as Saudi Arabia and in Arabic as as-Sa‘ūdiyyah , is the largest state in Western Asia by land area, constituting the bulk of the Arabian Peninsula, and the second-largest in the Arab World...
, and the second-largest gas reserves after Russia
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
.
- Bitumen
- OilOilAn oil is any substance that is liquid at ambient temperatures and does not mix with water but may mix with other oils and organic solvents. This general definition includes vegetable oils, volatile essential oils, petrochemical oils, and synthetic oils....
- ExtractExtractAn extract is a substance made by extracting a part of a raw material, often by using a solvent such as ethanol or water. Extracts may be sold as tinctures or in powder form....
- Carbon blackCarbon blackCarbon black is a material produced by the incomplete combustion of heavy petroleum products such as FCC tar, coal tar, ethylene cracking tar, and a small amount from vegetable oil. Carbon black is a form of amorphous carbon that has a high surface-area-to-volume ratio, although its...
- SolventSolventA solvent is a liquid, solid, or gas that dissolves another solid, liquid, or gaseous solute, resulting in a solution that is soluble in a certain volume of solvent at a specified temperature...
- Fuel OilFuel oilFuel oil is a fraction obtained from petroleum distillation, either as a distillate or a residue. Broadly speaking, fuel oil is any liquid petroleum product that is burned in a furnace or boiler for the generation of heat or used in an engine for the generation of power, except oils having a flash...
.
Petrochemicals
- Polymers
- Chemical
- Gases and Feeds
Agricultural
- CropCropCrop may refer to:* Crop, a plant grown and harvested for agricultural use* Crop , part of the alimentary tract of some animals* Crop , a modified whip used in horseback riding or disciplining humans...
Group: various kinds of corn, grain, wheat, rice, bran - Dried and Trans Products: various kinds of pistachio, date, raisins, saffron, cumin, tea, sugar
- Oil Cake and SeedsSEEDSSEEDS is a voluntary organisation registered under the Societies Act of India....
Group: various kinds of oily seeds like soybean and oil cake seeds like soybean, colza, cotton seed, sunshade, Safflower cake, corn, palm - Cereals Group: pea, lentil
- Frozen ChickenChickenThe chicken is a domesticated fowl, a subspecies of the Red Junglefowl. As one of the most common and widespread domestic animals, and with a population of more than 24 billion in 2003, there are more chickens in the world than any other species of bird...
Tradable contracts
- Spot contractSpot marketThe spot market or cash market is a public financial market, in which financial instruments or commodities are traded for immediate delivery. It contrasts with a futures market in which delivery is due at a later date...
- Forward contractForward contractIn finance, a forward contract or simply a forward is a non-standardized contract between two parties to buy or sell an asset at a specified future time at a price agreed today. This is in contrast to a spot contract, which is an agreement to buy or sell an asset today. It costs nothing to enter a...
- Contract on Credit
- Futures contractFutures contractIn finance, a futures contract is a standardized contract between two parties to exchange a specified asset of standardized quantity and quality for a price agreed today with delivery occurring at a specified future date, the delivery date. The contracts are traded on a futures exchange...
(since 2008) - Options contract
Trading system
Trading in IME is based on open outcryOpen outcry
Open outcry is the name of a method of communication between professionals on a stock exchange or futures exchange. It involves shouting and the use of hand signals to transfer information primarily about buy and sell orders...
auction using electronic trading platform
Electronic trading platform
In finance, an Electronic trading platform is a computer system that can be used to place orders for financial products over a network with a financial intermediary. This includes products such as shares, bonds, currencies, commodities and derivatives with a financial intermediary, such as a...
, an interaction of bids and offers made by the buying and selling brokers. Orders, already placed by the clients, are entered in the system by the brokers sitting behind their stations in the trading floor. The system processes the orders and executes the transaction upon matching of the bid and offer prices.
IME Statistics
| IME Exchange (Including spot, credit and forward transactions) | 2007/08 | 2008/09 | 2009/10 |
|---|---|---|---|
| Agricultural - Volume (thousand tons) | 273.0 | 173.5 | 175.2 |
| Agricultural - Value (billion rials Iranian rial The rial is the currency of Iran. It is subdivided into 100 dinar but, because of the very low current value of the rial, no fraction of the rial is used in accounting.... ) |
772.6 | 643.7 | 484.8 |
| Metal - Volume (thousand tons) | 6,443.8 | 6,679.7 | 7,438.5 |
| Metal - Value (billion rials) | 58,044.2 | 62,120.6 | 53,842.0 |
| Oil Products - Volume (thousand tons) | 89.7 | 4,339.2 | 7,052.9 |
| Oil Products - Value (billion rials) | 352.7 | 19,921.0 | 36,450.7 |
| Grand Total - Volume (thousand tons) | 6,806.5 | 11,192.4 | 14,666.6 |
| Grand Total - Value (billion rials) | 59,169.4 | 82,685.3 | 90,777.5 |
See also
- Iranian Oil BourseIranian oil bourseThe Iranian Oil Bourse International Oil Bourse, Iran Petroleum Exchange Kish Exchange or Oil Bourse in Kish is a commodity exchange which opened on February 17, 2008. It was created by cooperation between Iranian ministries, the Iran Mercantile Exchange and other state and private institutions...
- Tehran Stock ExchangeTehran Stock ExchangeThe Tehran Stock Exchange is Iran's largest stock exchange, which first opened in 1967. The TSE is based in Tehran. As of July 2010, 337 companies with a market capitalization of US$72 billion were listed on TSE...
- Banking in Iran
- Economy of IranEconomy of IranThe economy of Iran is the eighteenth largest in the world by purchasing power parity and according to Iranian officials' claims is going to become the 12th largest by 2015. The economy of Iran is a mixed and transition economy with a large public sector and some 50% of the economy centrally planned...
- Dubai Mercantile ExchangeDubai Mercantile ExchangeThe Dubai Mercantile Exchange is a commodity exchange based in Dubai currently listing its flagship futures contract, DME Oman Crude Oil Futures Contract...
External links
Iran Mercantile ExchangeVideos
- Gold market and currency exchange in Iran - Part I Part II Part III (Free PressTV video documentary)