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Istanbul Options, Futures Market to Boost Volume: Vice Chairman

Turkey’s futures and options market will attract more foreign investment and trading volume will eventually match that of the Istanbul Stock Exchange (XU100) spot market, bourse Vice Chairman Mustafa Kemal Yilmaz said.

Volume in 10 shares opened to trading on Dec. 21 was 2.5 million liras ($1.39 million) in futures and about 447,000 liras in options, according to an ISE statement e-mailed today. That compares with daily trading volume of 489 million liras on the benchmark ISE National 100 index on the same day, according to data compiled by Bloomberg.

The exchange will attract investors to Turkey who were previously forced to purchase options elsewhere, while establishing a regional market for futures trading, Yilmaz said by telephone on Dec. 21.

“Previously, these trades were made at overseas over-the- counter markets” and “we want to attract this potential, establishing a platform for foreign investors,” Yilmaz said. Turkey’s region lacks a high-volume futures market and the ISE “will be creating a market useful for regional countries,” he said.

“It’s about time, too,” Yasin Demir, assistant manager for domestic markets at Istanbul-based Is Investment, said by phone Dec. 21. “The implementation was a bit rushed, so the market was not fully prepared for this.”

Foreign investor interest in options trading is high, Demir said, and “volumes will soar in no time.”

The Istanbul futures and options market started trading with contracts based on shares of Turkiye Garanti Bankasi AS, Akbank TAS, Turkiye Is Bankasi AS, Turkiye Vakiflar Bankasi TAO, Yapi ve Kredi Bankasi AS, Turk Havayollari AO, Eregli Demir ve Celik Fabrikalari TAS, Haci Omer Sabanci Holding AS, Turkcell Iletisim Hizmetleri AS and Turkiye Petrol Rafinerileri AS.

To contact the reporter on this story: Taylan Bilgic in Istanbul at tbilgic2@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net

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