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The Capacity of IRENEX Futures Contracts to Forecast Companies' Revenue

Launching the futures market and using derivatives in commodity exchanges has always been emphasized by the SEO, and the Iran Energy Exchange (IRENEX) unveils energy futures transactions in line with the organization's plans.

 

Launching the futures market and using derivatives in commodity exchanges has always been emphasized by the SEO, and the Iran Energy Exchange (IRENEX) unveils energy futures transactions in line with the organization's plans.

SEO Deputy Chairman, explained: "The derivative market provides great capacities for the capital market, for instance, risk coverage for investors, buyers, and sellers as well as smoothing out the steps towards predictability and price indexation.

He added: "By launching the energy futures market in the capital market, it will be possible to have more transparency in the stock trading of sellers and producers whose shares are traded in the stock exchange. Furthermore, it will be possible to predict revenues based on futures contract maturities."

Pointing out that the establishment and deepening the derivative market has always on the agenda and supported by the SEO, he further continued that the SEO has asked the Energy Exchange to provide a suitable market for other assets in this market and to make this new tool more widely available for investors so that they can simultaneously adopt different investment strategies in the securities and derivatives markets.