Market Making of Exchange-Traded Funds

The volatility in the country’s capital market is one of the concerns of investors. Furthermore, the existence of retail investors causes the movements in Iran’s capital market to be typically unilateral. However, in recent years due to the significant increase in the size of the market, the problem of excessive demand has drawn less attention, however, market emotions still affect the decision of rational investors. The aforementioned problems, not only influence the investors’ return but also trouble the investment liquidity. Exchange Traded Fund (ETF) is a more secure way of investment which has less volatility. By applying this method, investors can easily and in the shortest time open or close their accounts. After the successful experience of mutual funds in the capital market of the country, now it is time to have exchange traded funds which possess faster mechanism that leads to the possibility of broader acquisition compared with mutual funds. These funds benefit from mutual funds. They also offer investors easier access to this method of investment through the vast network of brokers in Tehran and Regional floors. Sepehr Investment Bank acts as a leading company in providing market making of investment units of traded mutual funds. It also provides liquidity of this financial instrument in the country’s capital market.