Exchange Traded Fund (ETF)
In the summer of 2013 Iran Capital market, witnessed the appearance of a new financial instrument. More than 100 mutual funds were operated in the Iranian Capital Market suggesting lucrative opportunities to retail investors. But the Iranian Capital Market was still demanding for more appealing and accessible instruments. Therefore Tadbir with the cooperation of its customer partner "Arman Ati Investment Consultancy Firm" recognized this need, analyzed various aspects, designed and launched the first ETF named "Asa ETF" in Iran Fara bourse (IFB) the Iranian OTC Market. In the first of October, simultaneously with the fifth anniversary of IFB, the inauguration of the trades of "Asa ETF" was performed by the capital market authorities.
Unlike a mutual fund that has its net-asset value or NAV calculated at the end of each trading day, ETFs' prices change throughout the day, fluctuating with market elements. This is the only financial solution in our market that fulfils several duties at a time such as regulatory and accounting compliances, updating portfolio combination and valuation, applying corporate actions, clearing and settlement, issuance and/or redemption of units which led to calculation and publishing NAV in a fraction of minutes.
This sophisticated solution was the first of its kind which relates the OTC market, Trading Engine, Market Makers, CSD and Fund Manager. All the information needed to update the ETFs' NAV, exchange in standard message formats. The real time NAV is being pushed over HTTP protocol to any types of clients. Tadbir ETF system can works with standard financial exchange message such as MMTP and FIX protocols and has the ability to be adopted with various markets.