A leading gathering of the energy sector in our region organized since 1994, 22nd ICCI – International Energy and Environment Fair and Conference was held in Istanbul on April 27-29, 2016. Borsa İstanbul continues to be one of the most important supporters of the Organization with “Borsa İstanbul Special Sessions” held annually to discuss the key topics of the national and international agenda.

Entitled “Risk Management in Energy Markets and Importance of Derivative Markets”, Borsa İstanbul Special Session was held on the second day of the Conference, and chaired by Borsa İstanbul Chief Business Development Officer Dr. Mustafa K. Yılmaz. The panelists were EPİAŞ Internal Control and Risk Management Director Rıdvan Çabukel, Finans Invest Deputy General Manager Egemen Erden, Enerjisa Trade Director Selçuk Karakaya, Takasbank Derivatives Clearing Head Necla Küçükçolak, and Borsa İstanbul Futures and Options Market (VIOP) Department Head Kamil Güzel.

Dr. Mustafa K. Yılmaz opened the session emphasizing that in developed energy markets, risk management instruments are widely used and real energy sector is integrated with the financial sector thanks to organized derivatives markets and over the counter platforms. Yılmaz went on to say, that compared to successful international energy markets where the volume traded on organized derivatives markets is almost 2 times of the volume traded on spot markets, the traded volume in the organized derivatives market of Turkey constitutes only about %30 of the spot market volume in spite of the rise in volume of energy contracts traded in Derivatives Market (VIOP) since the 4th quarter of 2015.

The risks in electricity markets especially price risk, counterparty risk and the credibility problem, the tools available in order to manage these risks, sector’s expectations especially on transparency and market surveillance, solution recommendations and the role of derivative markets in risk managements were discussed in the panel. The panel ended with a question & answer session.