Tehran Stock Exchange Starts Futures Trading to Attract Foreign Investors - Bloomberg

The Tehran Stock Exchange, home of the world’s second-best performing equity index, today begins offering derivatives based on Iranian banks to diversify its market and attract foreign investors.

The exchange is introducing six futures contracts on two banks, Managing Director Hassan Ghalibaf-Asl said July 23 in a telephone interview. The contracts, based on Parsian Bank and Karafarin Bank, will expire in two, four and six months. The exchange said it hopes to increase the number of companies covered by futures contracts to at least 10 by March.

“This new product will attract the foreign investors to Iran’s capital market, which isn’t very well known to them,” Ali Karamad, owner of Tehran-based asset management company Karamad Group, said by telephone July 23. “It gives them security, knowing that Iran’s market is introducing instruments similar to those in international markets.”