FUTURE CONTRACTS
As Turkey's first entirely electronic derivatives exchange, TurkDEX offers a core product base of financial and commodity instruments. Its primary objective is to develop and provide derivatives to help traders, hedgers, and investors to manage their risks effectively.
With the launch of TurkDEX, market participants now have the proper tools for managing their
exposures to price fluctuations in foreign currency, interest rates, equities and commodities.
Currently, TurkDEX offers debt, equity index, foreign currency and commodity future contracts, and plans to offer options on these contracts in the near future. TurkDEX is committed to meet the needsof its clients by responding to their demands.
An efficient, fair, transparent and investor-friendly trading platform is the key to TurkDEX's success. With a well functioning electronic trading platform, TurkDEX is operating via virtual access from everywhere, providing its clients with office independence, low transaction costs and liquidity. In addition to equal access for all participants to satisfy their needs and expectations, the trading system guarantees maximum accessibility and provides instant order entry and matching. Aiming to accelerate the growth of the Turkish financial industry as a whole, TurkDEX creates a new link between market participants and the financial markets. TurkDEX also wishes to expand the scope of its services by offering the following advantages:
• A fair, competitive environment and low trading costs
• A strong leverage effect
• Countrywide access based on reliable state-of-the-art technology
• A sophisticated clearing and settlement infrastructure
• Real-time margining and risk calculation
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Why Invest in TurkDEX Futures?
No Regulatory Restrictions for International Investors
• International investors are eligible to trade all TurkDEX products without any regulatory
restrictions.
• International investors have a considerable share in trading volume of TurkDEX by holding the
majority of open interest.
• Capital Markets Board is designated as the regulatory institution to regulate and inspect the
market.
• The strength of Capital Markets Board’s regulatory capabilities ensures financial security of the
market.
Tax Incentives
• TurkDEX is tax free for foreign and local institutional investors
A New Way of Hedging Turkey
• TurkDEX offers the long needed risk management and hedging tools in the Turkish financial
markets.
• Both local and foreign investors can hedge their Turkish equity and currency exposure by
using TurkDEX futures contracts.
• “ISE-30 Equity Futures” are widely used for hedging purposes by hedge funds and other
institutional investors.
Liquid and Cost-Efficient Market
• High volumes ensure the efficient execution of trades
• Brokerage fee is the only (and final) cost
• Cash portion of the margin receives overnight interest with no capital cost
Going Short in Equities
• Lack of established equity lending market in Turkey prevents investors to take short positions in
equity and fixed income instruments.
• The only platform to short efficiently the Turkish equity markets is provided by TurkDEX.
Leverage and Attractive Small Contract Size
• Required margin is almost 10% of the value of the contract
• The contract size in equity index futures, which is around $5,000 is small enough even for the
smallest investor to participate.
Financial Integrity
• A well regulated, efficient and financially sound clearing service is in place through Takasbank
(the central clearing house in Turkey).
• The financial and operational safeguard system is comparable to the best international
practices.
• The surveillance department is responsible for detecting any fraudulent trading practices,
abuses or any violation of rules and regulations.
Alternative Investment Tools for Turkish Investors
• With the launch of TurkDEX futures, Turkish investors found the opportunity to invest in new
alternative financial instruments other than long used classical investment tools such as bonds,
equities and bank deposits.
• Local brokerage companies created new over-the-counter (OTC) derivatives products for their
clients by using TurkDEX futures contracts at the back; and enriched their product range
extensively.