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Brokerage Companies

A brokerage company’s main duty is to act as a middle entity connecting buyers and sellers to facilitate a transaction. Brokerage companies typically receive compensation by means of a commission (either a flat fee or a percentage of the amount of the transaction) once the transaction has successfully completed. For example, when a trade orders a stock to be executed, an investor pays a transaction fee for the brokerage company's efforts to complete the trade.

There are 108 brokerage companies active in the Iranian capital market. Their activity license is granted by the SEO. All brokerage firms may obtained the activity license to operate in each of the four Exchanges separately, i.e. Tehran Stock Exchange, Iran Farabourse, Iran Mercantile Exchange and Iran Energy Exchange.

Market-making activities are being done through the brokerage companies. However, based on the recent directives, market-making operations are gradually shifting to independent companies with a new license issued by the SEO. Moreover, brokerage companies welcome e-trading, and the ratio of e-trading is upheaving.

 

 
 

No.

Regulations

         1.

The Regulations Governing Advertisements by the Brokerage Firms 

         2.

The Regulations Governing the Functions and Powers of Iran Commodity Exchange Company Regarding the Member Brokerage Firms

         3.

The Regulations Governing the Functions and Powers of Tehran Stock Exchange Company

Regarding the Member Brokerage Firms

         4.

Regulations Governing the Establishment License and Operations of Brokerage Firms on the Exchange

         5.

The Disciplinary Regulations Governing The Brokers

         6.

The Regulations on the Dispute Settlement Committee of the Securities and Exchange Association of Brokers

         7.

The Regulations Governing The Rating of Tehran Stock Exchange Brokers

         8.

The Regulations Governing the Suspension, Revocation and Withdrawal from Activities Carried out by Brokerage Firms

 
 
 
 
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