FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT APRIL 2009
TEHRAN SECURITIES EXCHANGE TECHNOLOGY MANAGEMENT COMPANY (TSETMC) AFFILIATE MEMBER
The major project for TSETMC is to
implement a new trading solution for the
Tehran Stock Exchange (TSE) in the year
2008.
Morteza Khazanedari
Managing Director
TSETMC’s activities for the year 2008 are:
The major project at TSETMC is to implement a
new trading solution for the Tehran Stock
Exchange (TSE) in the year 2008. The trading
solution was installed on the purchased hardware
in early April 2007. This Solution is due to come
online in the winter of 2008 after finalization of
internal and external User Acceptance Testing
(UAT). TSETMC is also assisting the newly
established CSD Iran Company for the
implementation of a new post-trade solution.
TSETMC has a very close relationship with CSD
Iran Company since all of the post-trade activities
Other Projects
Financial Information Processing of Iran (FIPI)
TSETMC started a new project titled "Financial
Information Processing of Iran" (FIPI). The main
objective of the project is to establish a Data
Warehouse to gather and maintain all important
information and data in Iranian financial markets.
Stored data and information are processed and
delivered via different mediums (such as a website,
Decision Support Systems and Standard reports) to
various users.
Digital Signature Certificate
TSETMC defined a new project with Iranian Commerce
Ministry to become a Certified Authorization (CA) body
for the Iranian Capital Market. Iranian Ministry of
Commerce acts as a root CA in Iran and authorized
TSETMC to provide Digital Signature Certificate to
capital market’s participants. Such certificate has a vital
rule in electronic commerce as both parties could
transact digitally with very high level integrity, privacy,
authentication and none-repudiation.
General Information
Tehran Stock Exchange Services Company (TSETMC)
is a subsidiary of the Securities and Exchange (SEO) of
Iran. SEO regulates and overseas the Iranian capital
market. TSETMC was established on June 1994 as an
independent company owned by Tehran Stock
Exchange (TSE) and its members. With the
implementation of the new Capital Market Act by the
Iranian Parliament, SEO was established and the
ownership of TSETMC was transferred to SEO. The
TSETMC’s main function is to develop, maintain,
operate, and promote systems for all stages of the
trade-cycle services in Iran.
Specifically, TSETMC is responsible to:
• maintain all hardware and software used for trade
and post trade activities
• develop and enhance existing software applications
• provide consultancy and technical advice to main
exchanges in Iran
• Act as a financial information processor for the
Iranian financial market
were the responsibility of TSETMC before the
enactment of the Capital Market Act by the
Iranian Parliament in 2005. CSD Iran Company is
also an Affiliated Member of FEAS. introduction of these markets and also their trade
and post-trade processing. TSETMC is an active
member of a consortium with the responsibility to
establish the Iranian Petroleum Exchange.
During the implementation of the new core trade
and post-trade solutions, TSETMC is assisting
major brokerage firms in Iran for the
implementation of Brokerage Solutions. TSETMC is the main contributor in the
development and implementation of international
standards in Iran. TSETMC is helping the
implementation of a DVP Model2 for TSE’s equity
market. In addition, the new CSD Company
would become a CCP of the equity market by
2010. TSETMC is involved with CSD Iran for the
provision of needed infrastructure and risk
management mechanisms.
The plan is to introduce financial and commodity
derivatives markets in TSE and the newly
established Iranian Mercantile Exchange (IME) in
the near future. TSETMC is supporting the
Services Provided
Trading
Maintain Automated Trading System (ATS)
Disseminate trade and financial information to
interested parties
Information and Supporting
Provide operational services
Manage operational risks
Memberships to International Organizations
Affiliate Member of the Federation of Euro-Asian Stock
Exchanges (FEAS)
Brief History
TSETMC started its operation as a subsidiary of the
National Informatics Corporation (NIC) of Iran in July
1984. Originally, TSETMC developed, maintained and
operated the computerized system of TSE used for
trade and post-trade activities. In June 1994, TSETMC
was incorporated as an independent company under
the ownership of the TSE, its members, and NIC.
Currently, Securities and Exchange (SEO) of Iran is the
sole owners of TSETMC.
Form of Settlement and Transfers:
Book-entry
Legal Status
Private Joint Stock Company
Settlement Period
For TSE Markets:
Equities: T+3
Corporate Bonds: T+1
Regulated By
Securities and Exchange Organization of Iran
(www.seo.ir)
Ownership
Owned by the Securities and Exchange Organization
(SEO) of Iran
Others
Provide consultancy
Manage TSE data centers
Implement specialized software
Form of Securities
Dematerialized
Does TSETMC act as a central counter party?
No.
Board of Directors: 3 Members
Representatives of the Securities and Exchange (SEO)
of Iran
Future Outlook
From March 2008 to March 2009, TSETMC intends to:
• Lead the implementation of a new trading solution
• Assist CSD Iran in the implementation of a post-trade
solution
• Assist brokerage firms for implementing total
brokerage solutions
• Lead efforts for implementation of Straight Through
Processing (STP)
• Contribute in the introduction of new instruments
• Assist in the creation of the Iranian Petroleum
Exchange
• Perform studies for creation of a Lending and
Borrowing market
• Contribute to the development and implementation of
international standards
• Initiate studies and efforts to introduce CCP at CSD
Iran
• Release the first phase of Financial Information
Processing project
• Continuing the Digital Signature Certificate project
Type of Commercial Entity
Private sector for-profit company
* Please refer to page 126 for the Iran country report.
CONTACT INFORMATION
Contact Name Mr. Houman Farajollahi
E-mail [email protected]
Website www.tsetmc.com
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