JUNE 2013 - FEAS

FEDERATION OF EURO-ASIAN STOCK EXCHANGES ANNUAL REPORT JUNE 2013
TURKISH DERIVATIVES EXCHANGE (TurkDEX)
2012, a difficult year for Turkish capital
markets.
Isinsu Kestelli
Chairperson
The year 2012 has been a year in which the
world had difficulties to stipulate growth and felt
the effects of the global crisis deeply. In Turkey,
despite the goal of a 4% growth rate, a growth
rate of below 3% was recorded at the end of
the year. On the other hand although the EU,
Turkey’s main trading partner, is still struggling
due to the Euro Crisis, Turkey has been able
to keep the inflation and unemployment rate at
one digit numbers, reducing the current deficit
and public borrowing rate.
2012 has been also a difficult year for the
Turkish capital markets. As a result the trading
volume of TurkDEX decreased for the first
time of its history. Compared to 2011, in 2012
the total trading volume decreased by 8.1%
to 403.9 billion TRY. Among several issues
affecting the trading volume negatively, we can
specifically point out that the overall global risk
appetite decreased and that the demand for
index derivatives contracts at Turkdex reached
its saturation point. On the other hand the
number of members increased to 101 and
the number of accounts increased to over
80.000 in 2012. Despite the decrease in trading
volume, Turkdex remained as one of the top
30 derivatives exchanges according to FIA’s
ranking.
HISTORY AND DEVELOPMENT
The Turkish Derivatives Exchange (TurkDEX)
was formed as a self-governing joint stock
corporation in 2002 through a resolution of the
Cabinet based on the approval of the Capital
Markets Board (CMB) of Turkey. The trading
started on February 4th, 2005 right after the
authorization of the CMB to operate as the first
derivatives exchange in Turkey. The Exchange
currently operates for a core product base
of financial, equity and commodity futures
contracts using an electronic trading platform.
The Board of Directors is composed of one
representative from the Istanbul Stock Exchange
(ISE), two representatives from the Union of
Chambers and Commodity Exchanges of Turkey,
two representatives from the Association of
Capital Market Intermediary Institutions of Turkey,
three representatives from bank and brokerage
house shareholders, one representative from
TurkDEX (CEO) and one representative from the
Izmir Commodity Exchange.
TurkDEX offers an efficient, liquid and
investor friendly electronic trading platform
for the trading of futures contracts on interest
rates, stock indices, foreign currencies and
commodities. One of the main objectives of
TurkDEX is to develop and provide financial
instruments that help individuals and institutions
to effectively manage their risks against price
fluctuations. Currently, 15 different derivative
instruments, namely; currency futures contracts
(TRY/US$, TRY/EUR and EUR/US$), interest
rate futures contracts (Benchmark Treasuries),
equity index futures contracts (TurkDEX-ISE
30 Stock Index, TurkDEX-ISE 100 Stock Index
and TurkDEX-ISE 30-100 Index Spread), cotton
futures contracts, wheat futures contracts, gold
futures contracts (TRY/gram and US$/ounce),
base load electricity futures contracts and live
cattle futures contracts are traded on TurkDEX’s
entirely electronic trading platform. With its
electronic trading platform, TurkDEX provides
access to traders wherever they are located,
subject to applicable local laws and regulations.
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