Derivatives Market (VIOP)

VIOP is the short name of the Borsa Istanbul futures and options market.

A derivative is a financial contract which derives its value from the performance of another entity called the "underlying”. Nowadays, derivatives which are based on equity, index, foreign exchange, T- bill, bond, commodity, gold, energy etc. are traded on the exchanges all over the world.

Future Contracts listed at VIOP:

• Single Stock Future Contracts
• Equity Index Future Contracts
• Currency Future Contracts
• Physically Delivered FX Futures
• Precious Metals Future Contracts
• Metal Future Contracts
• Energy Future Contracts
• Foreign Index Future Contracts
• Interest Rate Future Contracts
• Government Bond Futures

Option Contracts listed at VIOP:

• Single Stock Option Contracts
• Equity Index Option Contracts
• USDTRY Option Contracts
• Pyhsicially Delivered USDTRY Option Contracts

The specifications and codes of the contracts to trade on the Market will be announced by the Exchange. For Futures Contracts, the contract code includes information on instrument group, underlying asset, contract size and expiration date.

Table 1: Code For Futures Contracts

For Option Contracts, the contract code includes information on instrument group, underlying asset, contract size, exercise style, expiration date, option class and strike price.

Table 2: Code For Options Contracts

Single Stock Futures and Options contracts subject to corporate action adjustments may have different contract specifications than standart contracts. Contract codes may have additional information such as N1, N2, N3 etc. indicating that the contract is non standart.

Intermonth strategy orders shall be sent to the System with strategy order codes determined as in the below instead of the contract codes.

Table 3: Intermonth Strategy Order Code

Flexible contracts which are created by Exchange members by altering expiry day and/or strike price parameters of existing contracts with predefined constrains, are coded as follows:

Table 4: Contract Code for Flexible Option Contracts

Flexible contract codes, subjected to corporate action adjustment, may have additional information such as N1, N2, N3 etc. indicating that the contract is non standart.

Table 5: Contract Code for Flexible Future Contracts

For further information regarding Contract Codes on VİOP please refer to the Derivatives Market Procedure

Table 6: Contract Code for Pyhsically Delivered USD/TRY Future Contracts

Table 7: Contract Code for Pyhsically Delivered USD/TRY Option Contracts

VIOP primarily offers risk management opportunity to the investors who wish to avoid their risk. VIOP is the right choice for investors who want to gain profit in the context of their price expectations because it provides the opportunity to invest to the same amount of underlying assets as spot market but with a lower amount of collateral. VIOP also differs from spot market with its advantage to offer investors the opportunity to invest in different market conditions.

In order to start trading at VIOP, you must open a brokerage account. Information about our members can be found on http://borsaistanbul.com/en/members/members-list, for the information related to account opening you can apply to the intermediary institution you want to work with.

* Evening Session is not held at half days and the last trading day of the calendar year.

Evening Session does not held at the last trading day of the calendar year. Detailed information on the workflow of the trading sessions can be found in the Appendix-3 Explanations on Trading Day Sections And VIOP's Trading and Daily Workflow Hours , VIOP Procedure.

An exchange fee is charged for buy and sell transactions of futures and options contracts at Borsa İstanbul:

• For index futures and index option contracts an exchange fee of 0.004% (four hundred-thousandths) is charged. For future and option contracts the exchange fee is calculated based on the traded value (the product of price, contract size and number of contracts).
• For TLREF and government bond futures contracts an exchange fee of 0.001% (one hundred-thousandths) is charged. The exchange fee is calculated based on the nominal value (the product of nominal value and number of contracts)
• For the other futures and option contracts the exchange fee is charged as 0.003% (three hundred-thousandths) of the traded value of futures and options.

In the system there is a risk management structure with two layers which are called pre-trade risk management and post-trade risk management. Pre-trade risk management is performed by application of pre-trade risk management, PTRM. PTRM application is integrated with the Trading and Clearing platforms to provide pre-trade and at-trade risk management. PTRM, offers the Exchange and its members the ability to control and watch the possible risk arising from both orders and trades. Thanks to the application, risk of orders sent from trading workstations which are FixAPI and OUCH and realized trades can be controlled. Risk controls can be made at different stages which are before the orders are accepted (pre-order), after they are accepted (post-order) and during the transactions.

Post-trade risk management is controlled by Takasbank. For the trades realized in the market, margining on portfolio basis is applied. Takasbank employs “Standard Portfolio Analysis of Risk-SPAN” algorithm for margining on portfolio basis. Takasbank will determine and announce the parameters that will form the basis for margining on portfolio basis. Takasbank Central Counter Party’s Legislation is applied for regulation of risk management and collateralization.

In the system margin sufficiency of accounts will be checked by comparing margin consumption calculated by pre-trade margin model with the available collateral calculated by the component of clearing system responsible for real time margin calculations. In the case where the available collateral is negative for an account, breach will occur and the affected account will be in “risky” status. Risky accounts are not allowed to enter position increasing orders and can only enter position decreasing orders. All long orders of an account in breach state will be cancelled. Contrary to the existing rule, risky accounts can have more than one order that can wait open in the trading system.

The taxation of the income on VIOP contracts are given in the table below.

* All other Resident and Non-Resident Companies are subject to %10 WHT.

VIOP data is available on the Borsa Istanbul website with the following link:

Bulletin and Market Data

And also it can be reached via data vendors using the information provided below;

VIOP publishes a range of brochures illustrating applications of VIOP products and related strategies. Some of the useful links and VIOP training materials can be found from the table below:

Click for Derivatives Market (VIOP) Information Booklets

Click for Borsa İstanbul Derivatives Market (VIOP) Page

Click for Derivative Market Procedure

Click for Technical Documents

VIOP has been holding seminars in several locations. For detailed information please follow our news section on the Borsa Istanbul website.