The contracts, denominated in Iranian rials and settled physically, will have maturity dates on a two month cycle. All transactions will be cleared and settled by CSD Iran, the Iranian clearing house.

A source in the Middle East suggested the move was designed to placate Iranian investors facing a strict regulatory climate and economic sanctions. The European Union recently introduced a tougher than ever package of sanctions, barring European firms from investing in the Iranian oil and gas industries, or providing insurance to Iranian entities.

This climate is likely to mean EU and US players stay away from the Iranian futures market. The source, a senior market player, said: “There’s a lot of movement in Tehran, lots of brokers pushing for new products. There’s a hell of a lot of interest from local investors.”

The bourse has recently introduced a new Sama futures trading system, developed in house with the support of the Iran Mercantile Exchange, which lists futures on oil, metals and agricultural products.

By listing futures, TSE hopes to meet the needs of a wider range of investors, and give them diversification and hedging opportunities. The products will allow investors to bet on stocks with less money than buying them outright.

Asked to gauge whether the contacts were likely to gain traction with investors, the source was pessimistic, citing the barrier of sanctions and the poor running of the economy.

There is, however, a strong base of talent in Tehran, he argued, partly because Iranian finance professionals have recently found it much more difficult to get UAE visas to work in Dubai.