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

Principles related price quotation and tick scales of the contracts are determined by the Exchange in the contract specifications.

For further information please refer to the Derivatives Market Procedure

The maturity months of the contracts are determined by the Exchange within the contract elements (For further information please refer to the Derivatives Market Procedure). In addition to standard contract months, flexible option contracts can be created for a maximum period of the expiry day up to 180 days, flexible future contracts can be created for a maximum period of the expiry day up to 364 days by users.

The contract maturity and last trading day of futures and standart options contracts is the last business day of each contract month. Expiry and last trading day are the expiration date for flexible options contracts and flexible future contract. In case domestic markets are closed for half day due to an official holiday, expiry date and last trading day shall be the preceding business day.

The settlement method for single stock futures, single stock options and government bond futures contracts are physical delivery. In this method for single stock futures and single stock options,  dematerialized equities are exchanged at the expiry date. For government bond futures, physical delivery is realized by exchange of dematerialized government bonds.

The settlement methods for USD/TRY futures and USD/TRY option contracts are cash settlement and physical delivery. For USD/TRY futures and options, phsysical delivery is realized by exchange of  money (USD) at the expiry date.

The settlement method for index options and futures, currency options and futures (except physically delivered USD/TRY contracts), precious metal (gold, silver, palladium, platinum) futures, energy futures and TLREF futures are cash settlement. In this method, the profit/loss amount is exchanged at the expiry date. For options which are exercised, profit/loss at the expiry date is determined by the difference between strike price and settlement price at the expiry date.

Daily Settlement Price for Futures Contracts

The daily settlement price is calculated as follows at the end of the normal session and rounded to the nearest price tick:

a) The weighted average price of all the trades executed within the last 10 minutes of the normal session,

b) If less than 10 trades were realized in the last 10 minutes of the normal session, the weighted average price of the last 10 trades executed within the normal session,

c) If less than 10 trades were realized in the normal session, the weighted average price of all the trades executed during the normal session,

d) If no trades were realized during the normal session, the settlement price of the previous day will be determined as the daily settlement price.

If the daily settlement price cannot be calculated in accordance with the above methods by the end of the normal session, the settlement price may be determined by using the following methods singly or collectively.

a) The average of the best bid and ask quotations at the end of the normal session,

b) Theoretical prices are calculated considering spot price of the underlying asset or the daily settlement price for other contract months of the contract.

Trade reporting will not be taken into consideration. The right to change the daily settlement price by the Settlement Price Committee is under reserve.

Daily Settlement Price for Single Stock, Index, Mini Index and USDTRY Option Contracts

The daily settlement price is calculated as follows at the end of the normal session and rounded to the nearest price tick:

a) The weighted average price of all the trades executed within the last 10 minutes of the normal session,

b) If less than 10 trades were realized in the last 10 minutes of the normal session, the weighted average price of the last 10 trades executed during the normal session,

c) If less than 10 trades were realized in the normal session, the weighted average price of all the trades executed during the normal session,

d) If no trades were performed, theoretical prices calculated in consideration prices of underlying asset and other contracts based on the same underlying asset will be determined as the daily settlement price.

If the daily settlement price cannot be calculated in accordance with the above methods by the end of the normal session, or it is decided that the prices calculated do not reflect the market correctly, the Exchange may determine the daily settlement price in consideration of theoretical price, the previous day’s settlement price or the best bid and ask prices at the end of the normal session.

Trade reporting will not be taken into consideration in the above calculations. The Settlement Price Committee’s right to change the daily settlement price is under reserve.

Daily price change limits for future contracts is defined in the contract specifications by the Exchange. In the event that the upper or lower limit is calculated that it does not coincide with the price tick, the upper limit will be rounded to the lower price tick; and the lower limit, to the upper price tick.   (For further information please refer to the Derivatives Market Procedure)

In the case of option contracts, strike prices refer to the prices at which the option holder may buy (for call options) and those at which the option holder may sell (put options).

Example 1:

O_AKBNKE0417C8.00 contract represents a European call option with a strike price of TL 8. This contract entitles its holder (investor with long position) to buy 100 units of Akbank equities at TL 8 at the maturity date of April 30, 2017.

If the spot price of the underlying security is over TL 8, the option contract is in-the-money, at TL 8, it is at-the-money, and if the price falls below TL 8, the option contract will be out-of-the-money.

Example 2:

O_AKBNKE0417P10.00 contract represents a European put option with a strike price of TL 10. This contract entitles its holders (investors with long position) to sell 100 units of Akbank equities at TL 10 at the maturity date of April 30, 2017.

If the spot price of the underlying security is below TL 10, the option contract is in-the-money, at TL 10, it is at-the-money, and if the price rises over TL 10, the option contract will be out-of-the-money.

Strike Price Ticks

Single Stock Option

The strike price tick for the single stock option contracts to start trading will be determined as follows on the basis of the price of the underlying asset, and will be applied as two digits after the comma.

By taking closing price of underlyings in spot market in previous trading day as base price and using theoretical price calculation method, at-the-money price levels are determined. Contracts with eight different (one at-the-money, one in-the-money and six out-of-the-money) strike price levels are opened.

In addition to standard strike prices, flexible contracts can be created by users with the strike prices which are between below/above 20% of minimum/maximum of the current strikes.

USD/TRY Options

Strike price of the USD/TRY option contracts is as following table.

Theoretical price for each contract month are calculated on the basis of the value of multiplying the average of USDollar selling and buying rate announced by the Central Bank of the Republic of Türkiye at 15:30 of the last trading day by 1,000. At the  Money strike price levels are determined using these theoretical prices for each contract month. At eleven different strike prices such that two is “in the money”, one is “at the money” and eight are “out of the money” shall be opened for each of call and put options.

In addition to standard strike prices, flexible contracts can be created by users with the strike prices which are between below/above 20% of minimum/maximum of the current strikes of all options.

BIST 30 Index Options

Strike price of the BIST 30 Index option contracts is determined as following table.

By taking previous day’s closing price of underlying (index) in spot market as base price and using theoretical price calculation method, at-the-money price levels are determined. Contracts with eleven different (one at-the-money, two in-the-money and eight out-of-the-money) strike price levels are opened.

In addition to standard strike prices, flexible contracts can be created by users with the strike prices which are between below/above 20% of minimum/maximum of the current strikes.

Strike Prices to be Introduced for Trading

Following regulations related to strike prices to be introduced for trading are in effect:

• New option strikes and ATM level may differ per expiration since they will be calculated according to the theoretical price (rather than spot price) of underlying
• ATM levels for each expiration will be published daily to our members via trading workplace and FIXRD (reference data) channels.
• Inactivation of option series due to underlying price changes will be ceased and auto generated options will be tradable until expiration date unless inactivated by mandatory reasons.

In the BISTECH system, at the money strike price level will be determined for each contract month by using the theoretical price calculation method based on the underlying price and the contracts will be created in the following numbers.

Final Settlement Price Calculation Methods above mentioned are prepared briefly for information purposes only. (For further information please refer to the Derivatives Market Procedure)