Electronic Stock Exchange and Its Development in Iran

The last decade has witnessed a dramatic increase in the number and the market share of electronic trading in the stock market over the world, since electronic trading has improved the efficiency of stock markets and hence has reduced the cost of providing liquidity. It does offer lower operating costs and the possibility of remote access to the market. This paper addresses the issue of electronic stock trading system in Iran. More specifically, we extend our understanding of the role of electronic stock market and discuss the implications of the results for the designing of electronic trading systems in the country. The results of this paper show that the electronic stock trading faces with the lack of sufficient infrastructures such as information and communication technology (ICT), electronic banking, electronic commerce, and regulations. Therefore, it is required improving hardware, software, and physical infrastructures in the country. The results of this paper can be used by financial and economic policymakers, capital market decision makers to implement ICT in the stock exchange markets.