TEHRAN, Aug. 31 (MNA) � CEO of Iran Mercantile Exchange (IME) announced that the IME is about to launch futures contracts and CDRs for bitumen.


According to the report by the IME�s International Affairs and PR on Tuesday, August 30, the first day of �Iran Bitumen and Asphalt Forum 2016� was held by Conference Connection and sponsored by Jey Oil Refining Company and Pasargad Oil Refining Company,

Speaking at the event, IME CEO Hamed Soltaninejad explained IME�s programs to launch trading bitumen in futures contracts.

Presenting a brief overview of futures contracts for trading bitumen on export pit of IME, he irritated that launching futures contracts for bitumen to hedge the market participant for this commodity is amongst IME�s programs to develop trading of the product.

Pointing out the necessity of futures contracts for bitumen due to price fluctuations, Soltaninejad said �fluctuating prices entail launching risk management instruments and the most important factor to launch futures contracts for bitumen is to enhance the spot market of the commodity; furthermore, we have put on the agenda issuing of CDRs for bitumen to increase liquidity of the market.�

The official explained that CDRs will be launched for bitumen in order to provide continual price while, to this end, bitumen suppliers should allocate some of their production to drums. �On the other hand, by launching CDRs and entering the investment institute to the market, liquidity of these securities will be increased.�

Highlighting the challenges of warehousing in the bitumen industry, Soltaninejad said �presently, majority of suppliers deliver their commodity in bulk, while in order to implement bitumen CDRs and to store the commodity in accordance with determined standards, suppliers should deliver their commodity in drums.�

At the end of his remarks, CEO of IME pointed to the international market participants in the industry noting �IME needs to tap into other financial entities� experiences to launch successful futures contracts for bitumen and any relevant propositions will be welcome by IME.�

By Mehr News Agency