Legal Challenges Governing the Formation and Operation of Iran Mercantile Exchange Clearing House

Document Type : Research Article

Authors

Department of Private Law, Faculty of Law & Political Science, University of Tehran, Tehran, Iran

10.22059/jolt.2025.386336.1007352

Abstract

While the history of commodity exchanges in Iran is shorter than in other countries, the clearing house, which has reliable experience and acts as one of the executive arms of the Iran Mercantile Exchange, operates under laws and regulations such as the Permanent Decrees Law on the Country's Development Programs (approved in 2016), the Settlement and Clearing Instructions for Transactions in the Iran Mercantile Exchange (approved in 2010 by the SEO) and other relevant regulations to control suppliers' guarantees, monitor risk, settle funds, and clear some of the transactions. This research, while explaining the legal status of the clearing house and describing its duties and powers, addresses the existing legal challenges and possible conflicts with an institution such as the Central Securities Depository and Settlement. It is also intended to examine the existing challenges regarding the establishment of the clearing house and conduct a brief pathology analysis of the activities of this institution. Based on the research conducted, the results indicate that the existence of a single and specialized settlement system is essential for optimizing activities, developing a comprehensive membership system for commodity market participants, and reducing the legal and financial risks of commodity exchanges in the form of a central depository specifically for commodity exchanges.

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