Introduction
Energy Exchange Integrated Settlement System (ENEXIS) is a basic framework and platform to settle the transactions conducted on the two Iranian commodity exchanges, Iran Energy Exchange (IRENEX) and Iran Mercantile Exchange (IME), designed and launched by Central Securities Depository of Iran as a bid to streamline the relevant processes.
This project was designed in three phases and aimed to integrate pre-trade and post-trade processes of the commodity exchanges’ physical markets, minimize operational risks such as transactions regulation, lower operational costs, and proceed all stages electronically.
The first phase included the introduction of basic information and registration of producers, suppliers, commodities, and offerings. The second stage encompassed the processes of registering brokerage firms, customers, accounts, and buy orders, as well as, examining and approving orders, and development of management dashboard. The third phase was settlement processes and fees calculation, payments, delivery of goods, and the supervisory dashboard.
Previously, settlement of the transaction carried out on IRENEX was performed manually, considering the huge amounts of transactions and the market expansion, the model was prone to many difficulties. Therefore, development of an e-settlement system for the transactions done on both IRENEX & IME was inevitable.
Consequently, design and implementation of the first sector of the system dedicated to Energy Exchange Settlement (ENEXIS) was kicked off in 2017 and launched in 2018.
| Service Provider | CSDI |
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| Participants |
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| Objectives |
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| Unveiling Date | Design and implementation of Energy Exchange Settlement (ENEXIS) was kicked off in 2017 and launched in 2018. |
Specifications
All stages of study, design and review of ENEXIS are done according to international standards and its pilot test yielded brilliant results.
Features
- All pre-trade and post-trade functions are electronically executed via an integrated system.
- All information on commodities, suppliers, and buy orders can be recorded in the system.
- The system supports the model of placing orders based on proxy account
- All transactions are settled in cash, out of clearinghouse or by guarantees (supporting various guarantee models)
- The operator can enter the prices manually and that means the system can be hailed for its add-on module, which allows CSDI to price any shares or services and settle the relative transactions in multiple foreign currencies.
- Commodity delivery management that leads to the release of guarantees (whether bank or retention money guarantees) by the system
- Auto-calculation of all quantities
- Authentic report generation at any stage of the process
- Continuous monitoring of the market
- Discrete access levels for CSDI, IRENEX and brokerage firms personnel
- Providing the possibility to place buy orders for each customer, monitor transactions, follow up settlement processes (View debt and credit, settlement status, payments for each transaction, and print settlement forms) and delivery (registering delivery information and monitoring delivery status) for brokerage firms
- Access of IRENEX experts to information on transactions and suppliers' guarantees
- Access of CSDI to registration and change of basic and operational information (such as offering and transactions), registering and updating customers' information and their accounts, monitoring all information, approval or rejection of settlement, delivery confirmation, instruments for managing payments and accounting, work schedule, etc.
- Assigning accesses levels dynamically and the possibility to add, change or delete specific access levels
- Electronic verification of information and prevention of possible abuses
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