Based on the SEO announcement, as of today, investment funds are allowed to operate in the “Option Market” of the Iran Mercantile Exchange (IME), therefore, in addition to diversifying the asset portfolio of investment funds, such funds may cover investment risks in the commodity market.
In order to cover the fluctuation of the price of “Commodity Deposit Certificates (CDC)” in the portfolio of investment funds, the SEO allows the mentioned funds to trade options contracts for CDCs.
CDC has designed aiming to optimize investment in the field of goods and to facilitate transactions for investors. This tool can be used as an asset with a different fluctuation rather than shares and other assets in the capital market, to diversify the investment portfolio of commodity funds.
Based on this Statement, investment funds are allowed to trade in CDCs only if they meet following conditions:
– The maximum amount of investment of funds in the “Commodity Deposit Certificates” and transactions of options contracts is not more than the maximum amount of the investment fund to purchase this type of certificate.
– The number of CDC in the fund’s portfolio should be more than this type of transaction.
– The investment fund is allowed to adopt the terms of “CDC purchase and sale” based on the number of CDC in its portfolio.
Source: Securities & Exchange Organization
