Deniz Investment and Finans Invest become Market Maker for Electricity Futures Contracts under the new Revenue Sharing Market Making Program on Borsa İstanbul Derivatives Market (VIOP)
Market making program based on revenue sharing, which was initiated in the Turkish capital markets first time in January 2015, is successfully implemented on single stock futures & options, index and currency options markets on Borsa İstanbul VIOP. Due to market makers, providing liquidity by placing quotations on the market with narrow bid-offer spreads continuously, investors are able to find executable prices at all times. Successfully implemented market making program based on revenue sharing for options on VIOP, was expanded to include Base Load Electricity Futures Contracts as of October 1, 2015.
Zorlu Elektrik through Deniz Investment, and Fina Elektrik through Finans Invest became market makers for Base Load Electricity Futures Contracts on October 1, 2015. The contract maturity months for Base Load Electricity Futures Contracts were increased from 4 to 16 months; minimum order size is reduced in the trade reporting; and with two market maker institutions, the energy sector participants can effectively use VIOP electricity futures with central counterparty clearing service for their risk management. With the new market making program, increased number of contract maturity months, and reduction in minimum order size for trade reporting; the trade volume in Electricity futures, which has been increasing fast since June 2015, is expected to accelerate in the coming months.
Muammer Çakır, Head of Derivatives Market (VIOP) Borsa İstanbul said, “Currently, electricity is traded predominantly OTC in Turkey. In the forthcoming period, we expect the trading of electricity to shift to VIOP platform which offers central counterparty clearing service with a clear tax advantage. Towards this end, we will continue to offer new products that satisfy the sector’s risk management requirements. We have expanded our market making program based on revenue sharing, successfully implemented in other products, to include electricity futures contracts, and therefore, offering a good opportunity to hedge even for consumers who want to manage the electricity price risk at VIOP.”
Borsa İstanbul Derivatives Market (VIOP) is the region’s leading and most liquid derivatives marketplace where the investors and corporates come to manage their risk. VIOP offers the widest range of regional benchmark products across all major asset classes, including futures and options based on equity indices, currencies, interest rates, precious metals, commodities and energy with a central counterparty clearing service.
