VIOP - FUTURES & OPTIONS
Transcript of VIOP - FUTURES & OPTIONS
VIOP www.borsaistanbul.com
Agenda
Section 1 Borsa İstanbul……….………………………………………………………..4
Section 2 VIOP - Futures and Options Market……………………………………....15
Section 3 Product Specifications…………………..………………………………….19
Section 4 Market Rules and Risk Management…………………………….............32
Section 5 Borsa İstanbul – TURKDEX Merger………………………………………37
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Why Borsa İstanbul?
• Resilient and growing financial sector
• High liquidity in the cash market, number one in turnover velocity among FESE
members in January 2013
• First organized options market for Turkish equity underlyings & indices
• Huge potential in derivatives, as seen in TURKDEX’s tremendous growth
• Low cost base
• Forthcoming derivatives products, i.e Currency Options, Interest Rate Options,
Energy & Commodity Derivatives
5
Markets of Borsa İstanbul
EQUITY MARKET
DEBT SECURITIES
MARKET
FOREIGN
SECURITIES MARKET
EMERGING
COMPANIES MARKET
(11 Companies)
(VIOP)
FUTURES AND
OPTIONS MARKET
National Market
(233 companies)
Second National
Market
(77 companies)
Watch List Companies
Market
(13 companies)
Institutional Products
Market
Spot Market
Repo/Reverse Repo
Market
Wholesale Market
Repo Market for
Specified Securities
Interbank
Repo/Reverse Repo
Market
Eurobonds Market BIST30 SingleStock
Futures & Options
Index Options
(BIST30)
ETFs Market
(17 Funds)
ITs, REITs;
Venture Capital
(49 companies)
Warrant &
Certificates Market
(240 warrants, 92
certificates)
Markets of Borsa İstanbul
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Precious Metals and
Stones Market
Energy & Commodity
Markets
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Borsa İstanbul: Market Status
Average Daily Equity Market Traded Value (USD Billions) Equity Market Traded Value (USD Billions)
8th highest equity market turnover among the emerging markets
Source: Borsa İstanbul, *As of April 5th, 2013
Market Capitalization (USD Billions)*
Source: World Federation of Exchanges, as of
December 31th, 2012
0 500 1,000 1,500 2,000 2,500 3,000
Tel Aviv SE
Warsaw SE
Indonesia SE
GreTai Securities Market
BSE India
Bursa Malaysia
Mexican Exchange
The Stock Exchange of Thailand
Johannesburg SE
MICEX / RTS
Borsa Istanbul
Saudi Stock Exchange - Tadawul
National Stock Exchange India
Taiwan SE Corp.
BM&FBOVESPA
Korea Exchange
Shenzhen SE
Shanghai SE
Borsa İstanbul: Market Status
7
00.20.40.60.8
11.21.41.61.8
2
1.19 1.04
1.26
1.7 1.67
1.38
1.21 1.25
1.75 1.72 1.83
0
50
100
150
200
250
300
350
69 98
162 163
290
120
236
307
201
309 324
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Borsa İstanbul: A Highly Appreciated Investment Platform
Source: Borsa İstanbul, *As of April 1st, 2012
Percentage of Foreign Investors in Free Float
Market Capitalization
Share Turnover Velocity**
Source: World Federation of Exchanges
** As of March31st, 2013
5 th highest turnover velocity in the world as of March
2013
Borsa İstanbul: A Highly Appreciated Investment
Platform
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65.3
72.4
67.5 67.3
66.2
62.1
65.8 66
56
58
60
62
64
66
68
70
72
74
2006 2007 2008 2009 2010 2011 2012 2013/4*
00% 50% 100% 150% 200% 250% 300%
Singapore Exchange
SIX Swiss Exchange
London SE Group
NASDAQ OMX Nordic Exchange
NYSE Euronext (Europe)
Australian SE
BM&FBOVESPA
TMX Group
BME Spanish Exchanges
Taiwan SE Corp.
Deutsche Börse
Saudi Stock Exchange - Tadawul
Korea Exchange
Thailand Stock Exchange
Borsa İstanbul
Japan Exchange Group - Tokyo
Shanghai SE
GreTai Securities Market
Shenzhen SE
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Borsa İstanbul: A Well-Established Debt Securities Market
Borsa İstanbul has the world’s 4th largest bonds market on electronic order book
Source: Borsa İstanbul
*includes repo/reverse repo market.
**As of October 2012
Borsa İstanbul: A Well-Established Debt Securities
Market
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Borsa İstanbul: High IPO Potential
• 10 new companies in emerging
companies market with a total of 26
IPOs and one SPO during 2012
• Number of listed companies reached
to 407
• Funds raised through debt
instrument issuances amount to USD
23,6 billions in 2012
• Remarkable increase in the
issuance of debt instruments: 263
new issuances in 2012
• With more IPOs, our intention is to
reach at least 50-60% market
capitalization/GDP ratio
0
5
10
15
20
25
30
2002 - 2009 2010 2011 2012
6
22
27 26
Number of IPOs*
Source: Borsa İstanbul, *Figure for 2002 to 2009 is annual average
Borsa İstanbul: High IPO Potential
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Roadmap of Borsa İstanbul
Demutualization
Vertical / Horizontal
Consolidation
IPO and New Products
Integration with
Turkdex, Gold
Exchange
A More Efficient
Pre/Post-Trade
System
Closer Linkages
with Regional
Exchanges
New Capital Markets
Law
Trading Platform with
a State of Art
Technology
A Diversified Pool
of Products - VIOP
Roadmap of Borsa İstanbul
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New Organizational Infrastructure under Borsa İstanbul New Organizational Infrastructure under Borsa
İstanbul
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New Regulatory Framework
The new Capital Markets Law legislated at the end of 2012 is intended to
meet the requirements of İstanbul International Financial Center Project
sustain more transparent, effective, reliable, competitive environment for
capital market in Turkey
increase number and types of institutional investors such as asset
management companies together with increasing retail investor base
achieve coherence with EU capital market regulations
enhance corporate governance
improve operational efficiency
New Regulatory Framework
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New Regulatory Framework
The Law includes remarkable changes on;
Financial Instruments and Issuers
Financial Reporting, Independent Audit, Rating, and Valuation
Capital Market Activities, Intermediaries, and Self-Regulatory
Organizations
Institutional Investors
Surveillance and Precautionary Measures
Market Crimes and Sanctions
New Regulatory Framework
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VIOP - Futures and Options Market At a Glance
• As of 9th of April, 583 contracts with 11 different underlyings (10 equities and 1
index) are available for trading.
29.08.2012 21.12.2012 05.04.2013 05.08.2013
CMB gave authority to
Borsa İstanbul for
SSOs and SSFs.
Launch of VIOP - Options and
Futures Market (SSOs,SSFs)
with 10 underlyings
Launch of Borsa İstanbul
Launch of BIST30 Options
TURKDEX – Borsa İstanbul
Merger
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Code Code
AKBNK.E TCELL.E
EREGL.E THYAO.E
GARAN.E TUPRS.E
ISCTR.E VAKBN.E
SAHOL.E YKBNK.E
Code
XU030
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VIOP Members
Member
Code Member Name
Member
Code Member Name
ACA ACAR YATIRIM MENKUL DEĞERLER A.Ş. HSY HSBC YATIRIM MENKUL DEĞERLER A.Ş.
ADY ANADOLU YATIRIM MENKUL KIYMETLER A.Ş. IYF İNFO YATIRIM A.Ş.
AKM AK YATIRIM MENKUL DEĞERLER A.Ş IYM İŞ YATIRIM MENKUL DEĞERLER A.Ş
AMK ALTERNATİF YATIRIM A.Ş. KRE KARE YATIRIM MENKUL DEĞERLER A.Ş.
AOL ATA ONLINE MENKUL KIYMETLER A.Ş. MRS MARBAŞ MENKUL DEĞERLER A.Ş.
ATA ATA YATIRIM MENKUL KIYMETLER A.Ş. MSA MEKSA YATIRIM MENKUL DEĞERLER A.Ş.
BGC BGC PARTNERS MENKUL DEĞERLER A.Ş. OMD OSMANLI MENKUL DEĞERLER A.Ş.
CAM CAMİŞ MENKUL DEĞERLER A.Ş. OYA OYAK YATIRIM MENKUL DEĞERLER A.Ş.
DET DELTA MENKUL DEĞERLER A.Ş. PIT PİRAMİT MENKUL KIYMETLER A.Ş.
DSI DEUTSCHE SECURITIES MENKUL DEĞERLER A.Ş. SKY ŞEKER YATIRIM MENKUL DEĞERLER A.Ş.
DZY DENİZ YATIRIM MENKUL KIYMETLER A.Ş. SNK SANKO MENKUL DEĞERLER A.Ş.
EFG BURGAN YATIRIM MENKUL DEĞERLER A.Ş. STJ STRATEJİ MENKUL DEĞERLER A.Ş.
EKN EKİNCİLER YATIRIM MENKUL DEĞERLER A.Ş. UNS ÜNLÜ MENKUL DEĞERLER A.Ş.
EKS EKSPRES YATIRIM VE MENKUL DEĞERLER A.Ş. TAC TACİRLER YATIRIM MENKUL DEĞERLER A.Ş.
FNY FİNANS YATIRIM MENKUL DEĞERLER A.Ş. TBY TEB YATIRIM MENKUL DEĞERLER A.Ş.
GDK GEDİK YATIRIM MENKUL DEĞERLER A.Ş. TKS TAKSİM YATIRIM A.Ş.
GLB GLOBAL MENKUL DEĞERLER A.Ş. TLM TEKSTİL YATIRIM MENKUL DEĞERLER A.Ş.
GLT GALATA YATIRIM A.Ş. TRA TERA MENKUL DEĞERLER A.Ş.
GRM GARANTİ YATIRIM MENKUL KIYMETLER A.Ş. YAT YATIRIM FİNANSMAN MENKUL DEĞERLER A.Ş.
PHC PHILLIP CAPITAL MENKUL DEĞERLER A.Ş. YKR YAPI KREDİ YATIRIM MENKUL DEĞERLER A.Ş.
HLY HALK YATIRIM MENKUL DEĞERLER A.Ş. CSM CREDIT SUISSE
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There are currently 42 members.
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UNDERLYING SECURITIES MARKET CAP
USD bln
(as of April 2, 2013)
WEIGHT IN
BIST30 INDEX
(%)
BLOOMBERG
TICKER INDUSTRY
1 BIST30 Index 220.0 100 XU030 Index
2 Garanti Bank 22.2 14.5 GARAN TI Banking
3 Akbank 21.0 12.0 AKBNK TI Banking
4 Is Bank 17.1 7.2 ISCTR TI Banking
5 Turkcell 14.9 5.0 TCELL TI Telecoms
6 Yapı ve Kredi Bankasi 13.9 3.4 YKBNK TI Banking
7 Sabancı Holding 12.5 7.5 SAHOL TI Multi-Sector Holdings
8 Vakıflar Bankasi 8.1 2.8 VAKBN TI Banking
9 Tupras 7.8 5.2 TUPRS TI Oil & Gas Refining
10 Turk Hava Yollari 4.9 3.4 THYAO TI Airlines
11 Eregli 4.0 1.7 EREGL TI Steel
Underlying Securities – Equity Options and Futures
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BIST30 Options
Product Name BIST30 Options
Underlying Security BIST30 Price Index
Exercise Style European-style; an option is exercised automatically on the Last Trading Day.
Contract Size Underlying security is the 1/1000 of the index values.
Contract size for the index options is 100 underlying securities.
Price Quotation and Tick
Size
Prices are offered for the premium value of one underlying security.
TRY0.01 per underlying security = TRY1.00 per contract.
Contract Months The two nearest calendar months and the following quarterly month of the
March, June, September and December cycle.
Settlement Cash settlement
Settlement Period T+1 (first day following the expiry date)
Last Trading Day and
Expiry Day Last business day of the contract month.
Trading Hours 09:15-17:45, non-trading period 12:30-14:00 (London 07:15-15:45)
Max Trade Size 2,500 contracts (14.4m USD)
Margins Initial Margin: Set by the SPAN portfolio margining method.
Maintenance Margin: 75% of the required collateral.
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BIST30 Options
Daily Settlement Price
Established by Takasbank.
- Weighted average price of all trades performed within the last 10
minutes before the closing of the trading session,
- If number of trades performed within the last 10 minutes before the
closing of the trading session is less than 10, the weighted average of
the last 10 trades before the closing will be set as the settlement price.
Final Settlement Price Closing index values on the Last Tading Day.
Exercise Price Intervals
Strike price tick is 2 (2,000 index points).
Option contracts with different strike prices are created within the ±10%
limit of the last closing value of BIST30 Index.
For each maturity, at least five different strike prices; two in the money, one
at the money and two out of the money options.
Different strike price option contracts are opened automatically with the
changes in the BIST30 index value.
Position Limits
As for the client level position limit, the gross open position in the same
side of the market (Long Call+Short Put or Short Call+Long Put) for each
client across all index option contracts, should not exceed 50,000
contracts. If 50,000 contract limit is exceeded, the client level position
limit will be 20% of the total open position on contracts of the same
underlying.
Market wide position limit is not applied to the index options.
Vendor Code Reuters: 0#XU030*.IS
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Strike Price Level Example
• Assume the closing value of BIST30 index as of April 4th is 105,815.32, this
corresponds to the underlying price of 105.815
• Upper limit for the strike price range is 105.815 * ( 1 + %10) = 116.397
• Lower limit for the strike price range is 105.815 * ( 1 - %10) = 95.234
• The strike prices levels in the following table will be formed in the system.
One at the money (106), two out of the money (108-110) and two in the
money (102-104) strike priced option contracts will be immediately opened
for trading.
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Strike Prices
96
98
100
102
104
106
108
110
112
114
116
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Profit/Loss Example for BIST30 Options
• Assume that the investor bought 10 option contracts of
O_XU030E0613C90.000S0 (Strike Price 90, Maturity June 2013, Call option on
BIST30) on April 5, 2013 for a premium of 3.74 TRY for one underlying.
Trade Date April 5, 2013 Friday
BIST30 Index Value 90,642.78
Underlying Price 90.642
Strike Price 90
Maturity Date June 28, 2013 Friday
Number of contracts traded 10 contracts
Price paid for one underlying (premium
value of the option) 3.74 TRY
Contract size 100 underlying
Total Position Size 90,642 TRY (10 x 100 x 90.642)
Total Premium (TRY) 3,740 TRY (3.74 x 10 x 100)
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Profit/Loss Example for BIST30 Options
• Two different scenarios on the maturity date
On the maturity date BIST30 closing value is 94,876.83
BIST30 Index Value 94,876.83
Underlying Index Price 94,876.83 / 1000 94.876
Final Settlement Price-
EDSP (TRY) 94.876 – 90 = 4.876 (rounded) 4.88 TRY
Profit/Loss (TRY) 4.88 x 10 x 100 4,880 TRY
On the maturity date BIST30 closing value is 89,341.45
BIST30 Index Value 89,341.45
Underlying Index Price 89,341.45 / 1000 89.341
Final Settlement Price-
EDSP (TRY) 89.341 – 90 ≤ 0 0.01 TRY
Profit/Loss (TRY) 0 TRY
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Single Stock Futures (SSFs)
Underlying Securities BIST30 stocks
Contract Size 100 shares per contract
Tick Size TRY0.01 per underlying security = TRY1.00 per contract
Expiry Months The two nearest calendar months and the following quarterly month of the
March, June, September and December cycle.
Settlement Physical delivery
Delivery Day T+3 (3 business days after the Last Trading Day)
Trading Hours 09:15-17:40, non-trading period between 12:30-14:00 (London 07:15 - 15:40)
Daily Settlement Price
Established by Takasbank.
- Weighted average price of all trades performed within the last 10
minutes before the closing of the trading session,
- If number of trades performed within the last 10 minutes before the
closing of the trading session is less than 10, the weighted average of
the last 10 trades before the closing will be set as the settlement price.
Final Settlement Price The closing price in the closing session of the underlying security in the cash
market on the Last Trading Day.
Last Trading Day Last business day of the contract month.
Daily Price Limit The daily price limit is set as +/-20% of the base price (previous daily
settlement price).
Vendor Code Reuters: 0#ISTFUT
Bloomberg: SFUT TI
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Single Stock Options (SSOs)
Underlying Securities BIST30 stocks
Exercise Style American
Contract Size 100 shares per contract1
Tick Size Prices are offered for the premium value of one underlying security.
TRY0.01 per underlying security = TRY1.00 per contract
Exercise Day Exercise by 17:45 on any business day.
Expiry Months The two nearest calendar months and the following quarterly month of the
March, June, September and December cycle.
Settlement Physical delivery
Delivery Day T+32 (Three business days following the day of exercise – Last Trading Day)
Trading Hours 09:15-17:40, non-trading period between12:30-14:00 (London 07:15 - 15:40)
Expiry Day & Last Trading
Day Last business day of the contract month.
Daily Price Limit None
Clearing House Takasbank
Vendor Code Reuters: 0#ISTOPT
Bloomberg: XXXXX TI Equity OMON
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1. Due to corporate action contract adjustments some stock option series may have a non-standard contract size.
2. Option premium is payable in full by the buyer on the business day following a transaction.
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Single Stock Options (SSOs)
Exercise Price Intervals
Set by the strike price increment table.
Option contracts with different strike prices are created within the ±20%
limit of the spot price.
For each maturity, at least three different strike prices; one in the
money, one at the money and one out of the money options.
Different strike price option contracts are opened automatically with the
changes in the underlying stock value.
Daily Settlement Price
Established by Takasbank.
- Weighted average price of all trades performed within the last 10
minutes before the closing of the trading session,
- If number of trades performed within the last 10 minutes before the
closing of the trading session is less than 10, the weighted average of
the last 10 trades before the closing will be set as the settlement price.
Margins Initial Margin1: Set by the SPAN portfolio margining method.
Maintenance Margin: 75% of the required collateral
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1. Physical delivery collateral is requested only in case of exercise.
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Strike Price Intervals for Stock Options
Strike Price Intervals (TRY) Strike Price Increments (TRY)
0.01 – 1.00 0.05
1.00 – 2.50 0.10
2.50 – 5.00 0.25
5.00 – 10.00 0.50
10.00 – 25.00 1.00
25.00 – 50.00 2.50
50.00 – 100.00 5.00
100.00 – 250.00 10.00
250.00 – 500.00 25.00
500.00 – 1,000.00 50.00
1,000.00 and above 100.00
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• The interval between the exercise prices is set according to the fixed scale below:
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Trading Hours
Single Stock
Futures and
Options
NonTrading
Period
Normal Session
Session
Break
Normal Session
Settlement Price
Calculation
BIST30 Options
NonTrading
Period
Normal Session
Session
Break
Normal Session
Settlement
Price
Calculation
9:15am (07:15am London Time)
17:40 (15:40
London
Time)
17:55 (15:55
London
Time)
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12:30 (10:30am London Time)
14:00 (12:00 London Time)
17:45 (15:45
London
Time)
• American Options exercise by 17:45 on any business day.
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Settlement Process
Last Trading Day (T)
T+1 T+2 T+3
Settlement Day
Exercise deadline
17:45 (Index Options
are automatically
exercised)
Deadline for physical
delivery at 16:30
Single Stock Futures & Options and BIST30 Options
Trade Day T+1 T+2
Settlement Day
Trading ceases
at 17:40
Deadline for
default at 16:30
Cash Equity Markets
Times are shown in local time (GMT+2:00)
Cash settlement
for Index Options
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Exchange Fees
Competitive Exchange Fee Structure
• Exchange Fees for SSFs - 0.004% (4/100,000) of the notional value
• Exchange Fees for SSOs and SIOs - 0.008% (8/100,000) of the premium
value, minimum 0.03 TRY for each option trade.
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Position Limits for SSFs & SSOs
• Market Wide Position Limit: If aggregate open interest in the futures and
options on individual equities exceed the number of free float shares, from
next day onwards the client/ trading members should trade only to decrease
their positions through offsetting positions till the normal trading in the market
is resumed. The normal trading in the market is resumed only after the
aggregate open interest comes down to 95% or below of the market wide
position limit.
• Client Level Position Limit: The gross open position in the same side of the
market (Long Call+Short Put+Long Futures or Short Call+Long Put+Short
Futures) for each client, across all derivative contracts on a stock, should not
exceed 5% of the number of the free float shares.
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Initial Margin & Leverage
• Required collateral & leverage ratios for SSFs (as of April 2,2013)
UNDERLYING
SECURITY
INITIAL
COLLATERAL
(TRY)
UNDERLYING PRICE
(TRY)
CONTRACT SIZE
(TRY)
COLLATERAL
RATIO (%) LEVERAGE
BIST30 950 105,8161 10,581
AKBNK 135 9.44 944 14.30 6.99
EREGL 50 2.33 233 21.46 4.66
GARAN 120 9.5 950 12.63 7.92
ISCTR 95 6.86 686 13.85 7.22
SAHOL 200 11 1100 18.18 5.50
TCELL 240 12.15 1215 19.75 5.06
THYAO 110 7.42 742 14.82 6.75
TUPRS 800 55.75 5575 14.35 6.97
VAKBN 80 5.86 586 13.65 7.33
YKBNK 85 5.74 574 14.81 6.75
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1. BIST30 Index value as of April 2th, 2013.
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• Real-time post trade margining is in force via SPAN (Portfolio based margining)
• SPAN, assesses the maximum risk and the required collateral which covers the
risk of a portfolio.
1. Risk measurement: Maximum loss of portfolio in one day is estimated.
2. Required premium: Liquidation values of long and short positions in a
portfolio.
• SPAN calculates the maximum likely loss that could be suffered by the portfolio
based on different price and volatility scenarios.
• There are 16 scenarios in the original algorithm. Each scenario is comprised of a
different market simulation with price and volatiliy moves of 1/3,2/3,3/3 ratio and
the extreme move of multiplier 3.
• Pre-order risk management is used for risky accounts.
SPAN - Post Trade Risk Management
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Risk Management
CONTRACTS
F_GARAN0611S0 O_GARANA0611C5.00S0 O_GARANA0911C5.00S0 TOTAL RISK
POSITIONS 1 1 -1
SCENARIOS
1 Underlying price unchanged; Vol up 0 -268 360 92
2 Underlying price unchanged; Vol down 0 271 -345 -74
3 Underlying price up 1/3 range; Vol up -233 -391 470 -154
4 Underlying price up 1/3 range; Vol down -233 135 -245 -343
5 Underlying price down 1/3 range; Vol up 233 -156 257 334
6 Underlying price down 1/3 range; Vol down 233 375 -424 184
7 Underlying price up 2/3 range; Vol up -466 -525 588 -403
8 Underlying price up 2/3 range; Vol down -466 -30 -125 -621
9 Underlying price down 2/3 range; Vol up 466 -54 162 574
10 Underlying price down 2/3 range; Vol down 466 448 -486 428
11 Underlying price up 3/3 range; Vol up -700 -669 714 -655
12 Underlying price up 3/3 range; Vol down -700 -220 14 -906
13 Underlying price down 3/3 range; Vol up 700 37 74 811
14 Underlying price down 3/3 range; Vol down 700 496 -532 664
15 Underlying price up extreme move -490 -340 284 -546
16 Underlying price down extreme move 490 155 -147 498
MAXIMUM RİSK 811
• For example, for a portfolio composed of one long position in F_GARAN0611S0,
one long position in O_GARANA0611C5.00S0, and one short position in
O_GARANA0911C5.00S0, 13th scenario is the worst with the total risk of 811 TRY
(700+37+74).
SPAN Algorithm Example
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Borsa İstanbul – TURKDEX Merger
• VIOP – Futures & Options Market is planned to be the ONLY derivative trading
platform in Turkey under the Borsa İstanbul on 5th of August, 2013.
• Borsa İstanbul and TURKDEX officially will merge on the 3rd of May 2013.
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Borsa İstanbul – TURKDEX Merger
Spot Market Derivatives
Market
• Equities
• Debt Securities
• Single Stock Futures
• Single Stock Options
• Stock Index Options
Forthcoming Products
• Currency Options
• CFDs
• Energy Derivatives
• Commodity Derivatives
Derivatives
Market
• Stock Index Futures
• Currency Futures
• Commodity Futures
• IR Futures
5th August
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Merger Timeline
40
April May June July August
14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32
Stage 1: Registration of BIST (03/04/2013)
Stage 2: Deadline for the share exchange (03/05/2013)
Stage 3: Trading system update process
Stage 3: Opening of the test system
Stage 4: Start of trading at VIOP (05/08/2013)
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Borsa İstanbul – TURKDEX Merger
• According to sub-paragraph b, paragraph 6, article 138 of the Capital Market Law
no. 6362, the shareholders of Turkish Derivatives Exchange (TURKDEX) will be
entitled to purchase Borsa İstanbul A.Ş. shares equal to the product of their share
multiplied by 0.05, within one month following the registration of the Articles of
Association of Borsa İstanbul A.Ş. (03.04.2013)
• The merger stipulates the migration of the futures contracts currently traded on
TURKDEX to Borsa İstanbul Futures & Options Market (VIOP), thereby all futures
and options contracts will be traded on a single platform.
• Following the transition, all futures and options contracts market data will be
provided through a single channel to data vendors.
• Transfer of the positions and collaterals from the accounts at TURKDEX to the
accounts at VIOP system will be completed in accordance with the principles
declared by Takasbank.
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VIOP www.borsaistanbul.com
Borsa İstanbul – TURKDEX Merger
• Following the merger, portfolio based margining will be used instead of contract
based margining used at TURKDEX. Portfolio based margining will be handled by
Takasbank using SPAN algorithm. The parameter file which is the basis for SPAN
algorithm is announced by Takasbank on a daily basis.
• All the contracts traded on TURKDEX will be transferred to VIOP Trading System
on August 5, 2013, and starting from this date, the transferred contracts will start
trading in accordance with the market rules of VIOP Futures & Options Market.
Some of the TURKDEX contracts with a low open interest or low traded volume
may not be transferred to the VIOP Market and closed to trading.
• Contract codes of TURKDEX contracts which will migrate to VIOP Futures &
Option Markets will be converted to the existing contract code format of VIOP.
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VIOP www.borsaistanbul.com
Borsa İstanbul – TURKDEX Merger
• Following the transition period, order transmission for the contracts to be traded on
the market will be made on VIOP API instead of VOB API, and also the trading
front end known as VOBKE screens will be replaced with VIOP screens.
• Risk management will be carried out in line with the procedure currently applied by
VIOP, with no collateral checks at the time of trade, and post-trade collateral check
by Takasbank. In order to control market risks, risk control may be applied at order
entry in some special cases.
• Position limits of the contracts traded on TURKDEX are being reviewed in
coordination with Takasbank.
• Guarantee Fund amounts calculated for VIOP will be recalculated during the
transfer of positions and collaterals for the accounts opened at TURKDEX, and
there will be only one Guarantee Fund with Takasbank.
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VIOP www.borsaistanbul.com
Borsa İstanbul – TURKDEX Merger
• Following the merger, only brokerage houses will be authorized to trade single
stock and index futures and options. Banks will not be authorized to trade in those
contracts directly, but only as agencies of brokerage houses. However, banks may
keep depository accounts for such contracts and/or act as clearing members. On
the other hand, with the exception of single stock and index futures/options, banks
will be allowed to trade contracts and may provide intermediary services for client
orders.
• Member representatives authorized to trade on TURKDEX are required to
participate in a one-day VIOP practical training program organized by Borsa
İstanbul in order to be able to trade at VIOP.
• All members will be informed about the changes regarding the post-session
bulletins and reports prior to the merger.
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VIOP www.borsaistanbul.com
Contact Us
Çetin Ali Dönmez
Executive Vice President
Muammer Çakır
Head
VIOP - Futures and Options Market
Tel: +90-212-298-2580
Fatih Alali
Assistant Specialist
VIOP - Futures and Options Market
Tel: +90-212-298-2186
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VIOP www.borsaistanbul.com
Disclaimer
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Please note that all products and services are subject to change without notice.
Disclaimer
Borsa İstanbul does not make any representations, warranties or guarantees, whether express or
implied, regarding the accuracy or completeness of this information. The information issued by
Borsa İstanbul with the express condition, to which everyone using it accepts, that no obligation,
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whether incidental, special, indirect or consequential, in connection with, caused by, or arising
from any use of, or reliance on, this information.
Because of the possibility of human and technical error as well as other factors, Borsa İstanbul is
not responsible for any errors or omissions, either its own or its information providers’.
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