US$/TRY currency option contracts started being traded on Borsa İstanbul Derivatives Market (VIOP) on Friday, May 16, 2014. This is the first time in the world that listed USD/TRY option contracts are traded on an organized market. The contracts offer investors and companies the opportunity to manage currency risks more effectively.

As the first time in the world, Borsa İstanbul Derivatives Market (VIOP) has introduced US$/TRY currency option contracts for trading on an organized market with Takasbank as Central Counterparty (CCP).

As currency options are introduced for trading on Borsa İstanbul on Friday May 16, 2014, investors and companies will have the opportunity to manage their currency risk exposure more effectively.

Hedging against Currency Risks

As Borsa İstanbul Derivatives Market introduces US$/TRY currency option contracts for trading, investors and companies will have the opportunity to hedge their open currency positions against a certain premium which will be discovered in a fair and transparent environment in the market.

Thanks to US$/TRY currency option contracts, investors will be able to trade in a fast and secure manner with Takasbank as the central counter party, without having to take the counter party risk, which is a significant risk factor in over-the-counter markets.  Furthermore, US$/TRY currency option contracts offer investors low cost trading, numerous strategy choices, risk management and arbitrage.

The contract features of US$/TRY currency option contracts were predominantly determined on the basis of the opinions and requests of market participants. European type US$/TRY currency option contracts with cash settlement will be traded between 09:10-17:45 local time (07:10-15:45 London). Further information on the contract specifications and trading principles of US$/TRY currency option contracts is available in Circular no. 433 on VIOP Operation Principles.