Title: Stock Market Chief: Growth, Not Fee Cuts, is the Path to a Stronger Market
In a recent address to the brokerage industry, the Head of Iran’s Securities and Exchange Organization, Hojjatollah Seydi, outlined a strategic vision focused on market expansion as the key to long-term prosperity, addressing calls for a reduction in brokerage fees.
A Call for Collective Growth
Speaking at the brokerage industry conference, Seydi acknowledged the concerns of investors in the 100-billion-dollar market, many of whom have been calling for lower transaction fees since 2020, citing losses. However, he presented an alternative path forward. “Instead of demanding higher fees, let’s come together to make the market larger,” Seydi proposed. “Then, brokers’ incomes will increase.”
He emphasized the indispensable role of brokers, describing them as the “vital thread that connects the beads of the market,” without which other components could not function.
Resilience and Future Potential
The market chief highlighted the financial sector’s resilience, stating that one of the “points of pride for the capital market and other financial institutions this year has been their ability to navigate dangerous turns with high resilience during the most difficult conditions.”
While acknowledging the journey ahead, Seydi pointed out that Iran’s market is still in the early stages of development compared to major global exchanges that have weathered crises. “Our market behavior hasn’t changed; only the tools have become slightly more diverse,” he noted, adding that there is significant untapped potential, as the market still lags behind the country’s 400-billion-dollar economic capacity.
Addressing the Core Issue
Seydi directly addressed the debate on fees, arguing that the fundamental problem is not the cost of transactions but a lack of market vitality. “The reality is that our problem is not fees, but the absence of prosperity in the market,” he stated. “If the market becomes dynamic and large, both incomes will increase, and fees will find their true meaning.”
He pointed to the Market Development Fund as a correct and decisive policy. “In this year’s difficult conditions, this fund injected several thousand billion Tomans in new resources into the market,” Seydi explained. He affirmed that as this fund grows, market risk decreases and investor confidence increases.
A Testament to Stability Mechanisms
Citing a recent period of significant political developments and fluctuations, Seydi revealed that during 12 intense days, the market performed with remarkable stability. While hundreds of thousands of billions in sell-offs were anticipated, transactions were managed smoothly with only around 43 thousand billion Tomans, a fact he credited to the calming presence of stabilization and development funds that reassured active participants.
“For people to remain in the market in the long term, we must support the Stabilization and Development Fund,” Seydi stressed. “This fund must remain sustainable for the market to be reliable in the long run.”
A Roadmap for Expansion
Concluding his remarks, the Stock Exchange head called on brokers to harness the market’s considerable potential through investment, planning, and innovative tools like tokenization and initial public offerings (IPOs).
He also shared an optimistic outlook for the second half of the year, based on recent meetings with listed companies. With the exception of a few specific challenged industries, Seydi forecasted that corporate performance will improve, which will in turn lead to better conditions for brokerage firms.