Introduction
"Futures Post-Trade System" was designed by Central Securities Depository of Iran in order to automate post-trade operations in the futures market.
Futures Contract is a financial instrument in which the seller commits itself to selling a specified number of underlying stocks at a specified price on a specified date (maturity date); in return, the buyer undertakes to buy those stocks at that price on the maturity date.
To prevent the parties from refusing to comply with the obligations stipulated in the contract, the parties undertake, as a condition of the contract, to deposit an amount as a guarantee with the brokerage firm or the clearinghouse. The guarantee is subsequently adjusted in proportion to market price changes.
The brokerage firm or the clearinghouse is authorized by the buyer and the seller to provide a part of the guarantee of each party to the other part, as per the changes in the stock value. Therefore, they will have the right to use it until the settlement at the due time.
FPTS system is to manage and execute all the operations automatically.
| Service Provider | CSDI |
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| Linking with Other Systems & Entities |
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| Objectives |
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Features
- Registration and management of clients’ information
- Determining the underlying value of the contract
- Settlement and final delivery of futures contract
- Final settlement and clearing open positions on maturity date
- Settlement at the level of brokerage firms
- Generating reports on brokerage firms’ clients in details
- Blocking /unblocking stocks in the system after futures trading
- Transfer of shares in the system after futures trading
- Transfer of funds between brokerage firms and CSDI
- Management of brokerage firm's information
- Determining the daily underlying value of the contract
- Calculating profits and losses of clients and their daily settlement
- Margin call (Risk Management)
- Performing delivery operations
- Generating different reports
