Having continued to increase and diversify the products and services it offers to the investors, Borsa İstanbul ready to launch the following products in the Derivatives Market:
- USD/TRY Futures and Options Contracts with Physical Delivery
- Platinum and Palladium Futures Contracts
- Government Domestic Debt Securities Futures Contracts
Making a statement on the issue, Borsa İstanbul CEO Korkmaz Ergun said, “We will support our real sector by introducing USD/TRY Futures and Options Contracts with Physical Delivery.”
Borsa İstanbul continues to increase and diversify the products and services it offers to investors. Within this scope, Borsa Istanbul is ready to open 3 new futures and options contracts on the Derivatives Market (VIOP).
Stating that one of the new contracts to be launched is USD/TRY Futures and Options Contracts with Physical Delivery and that the new contracts will start being traded on October 22, 2021, Borsa İstanbul CEO Korkmaz Ergun reiterated that these contracts will serve an essential purpose in terms of capital markets: “In addition to the existing cash-settled foreign exchange contracts, these contracts, which will be traded with physical delivery at the end of the maturity, will provide companies, most specifically companies in the real sector and foreign trade, which have a foreign currency position in their balance sheets due to their activities, to manage their exchange rate risks in a more competitive, secure and transparent platform. These contracts in which real persons can not transmit orders will ensure that financial institutions with no credit limit or have a limit problem in times of financial stress will make transactions with each other under the assurance of a central counterparty. Besides standard maturities, the flexible maturities we provide will enable companies to protect their FX positions without maturity mismatches, just as they do in forward and option contracts with banks. Thus, companies will have the opportunity to access more competitive prices by getting prices from the banks they actively work with and have a credit limit as well as all of our stakeholders who have access to our Exchange.”
Platinum and Palladium futures contracts are among the other contract groups to be traded. Making further explanations pertaining to these contracts to be traded as of September 17, 2021, Ergun holds that thanks to the new contracts, they will have completed the precious metals product range at Derivatives Market. As such, he further contended that they will provide their investors with the opportunity to invest with the assurance of the central counterparty and manage their risks in the face of the high volatility in precious metal prices with the effect of the expansionary monetary and fiscal policies implemented globally after the COVID-19 pandemic. As well as BIST 30, BIST Liquid Bank, BIST Liquid 10 Ex Banks, gold and silver contracts, Ergun added that Platinum and Palladium futures contracts will be included in the Derivatives Market Evening Session and will be traded until 23:00.
Asserting that another product they are planning to introduce in the near future is the Government Domestic Debt Securities (GDDS) futures contracts, Ergun stated as follows: “These contracts enable particularly the financial sector and institutional investors to manage their interest rate risks more effectively, and to increase the depth and create more effective prices by providing the fluidity between the spot market and derivatives market. In addition to banks, we expect other institutional and individual investors, who have a bond portfolio and seeking protection from changes in market interest rates, to show demand in GDDS futures contracts.
Concluding his remarks, Ergun asserted as follows: “Thanks to the new contracts starting to be traded on Derivatives Market, we aim to meet the different needs of different investor groups in the precious metals, foreign exchange and interest markets flexibly, to offer alternatives with an organized market perspective to the transactions made mostly in over-the-counter transactions and to increase risk management opportunities.”
