Borsa İstanbul and ICBC Turkey Yatırım announce collaboration on launching US Dollar/Chinese Renminbi (USD/CNH) and Chinese Renminbi/Turkish Lira (CNH/TRY) Futures contracts.
ICBC Turkey Yatırım, brokerage arm of ICBC Bank Turkey, plans to apply to be the market maker in Chinese Renminbi futures contracts planned to be launched at Borsa İstanbul Derivatives Market (VIOP), subject to regulatory approval. ICBC Turkey Yatırım aims to contribute Chinese Renminbi internationalization by being a market maker in the futures contracts and moreover, envisions it as a first step towards providing a full range of Renminbi instruments and financial solutions.
“ICBC Turkey Yatırım endeavors to further promote the development of RMB business through continuous product innovation, with a commitment to meet the increasing needs of region’s RMB services“ said – Mr. Oraj Özel, CEO and Board Member, ICBC Turkey Yatırım
“The Silk Road Economic Belt* initiative will support investment and trade along the route, and Turkey has a pivotal role being at the intersection of Europe and Asia. These contracts are in support of the initiative and will strengthen the link between the regional markets and China, as the world's second largest economy” said. – Mr. Gao Xiangyang, CEO and Board Member, ICBC Turkey Bank - Chairman, ICBC Turkey Yatırım
“China is not only demographic but also from economic point of view is extremely big and important country. Considering rapidly increasing trade activities and capital movements between Turkey and China, we expect that the market will favorably welcome the Chinese Renminbi futures. At this point, we made an application to Capital Markets Board of Turkey to launch futures contracts on Renminbi with the approval of Borsa İstanbul Board of Directors. We plan to expand our currency product line with Chinese Renminbi futures. ICBC Turkey Yatırım plans to be a market maker, which ensures that contracts will be liquid after the launch. As Borsa İstanbul, we aim at serving both domestic and foreign investors with the widest possible range of products and advancing in global rankings” said. – Mr. Çetin Ali Dönmez, Executive Vice President, Borsa İstanbul
“On top of the 41% increase in 2014, the total trade volume of FX futures at Borsa İstanbul Derivatives Market has further increased by 220% in 2015 YoY. As of today, FX contracts constitute more than 20% of the overall trading volume. Currency contracts on VIOP have also become very popular among foreign investors and they now account for 36% of the volume. We envision VIOP as the currency risk management platform of not only Turkey but also the region. In this context, subject to the regulatory approvals, we plan to launch Chinese Renminbi futures at VIOP in the coming months” – said Mr. Muammer Çakır, Head of Derivatives Market (VIOP), Borsa İstanbul
*The ‘Silk Road Economic Belt and the 21st-century Maritime Silk Road’ initiative was launched by Chinese Government in 2013 and aims to create new trading routes between China, Asia and Europe.
ABOUT BORSA İSTANBUL
Borsa İstanbul, with historical roots going back to 1873, is a diversified regional exchange in Turkey, providing trading, settlement, custody and registry services for equities, derivatives, fixed income & repo, precious metals and Islamic finance markets.
The Company operates under a single umbrella, following its de-mutualization and incorporation in 2012, and successful completion of horizontal integration (via the acquisition of the derivatives and gold exchanges), and of vertical integration (via control of the two domestic post trade firms), shortly thereafter.
Through its markets, Borsa İstanbul offers corporates, investors and traders in the region a broad range of financial products suited to their needs, and efficient access to extensive capital markets. Post trade and depository services are offered by its majority-owned subsidiaries of Takasbank (Istanbul Settlement and Custody Bank) and MKK (The Central Securities Depository). Borsa İstanbul calculates 360 indices that measure and benchmark equity and fixed income markets in Turkey.
Borsa İstanbul is a shareholder in the Sarajevo, Baku, Kyrgyz, and Montenegro Stock Exchanges, as well as LCH. Clearnet.
For further information, please visit Borsa İstanbul at http://www.borsaistanbul.com/en and follow us on Facebook (www.facebook.com/borsaistanbulEN), and Twitter (www.twitter.com/borsaistanbulEN).
The ICBC, headquartered in Beijing, leads the global banking industry in capital base, total assets, market capitalization, deposits, loans, and number of clients. Forbes magazine has recently ranked ICBC at the top of the Global 2000 list, a position taken by the bank for the third consecutive year.
ABOUT ICBC TURKEY YATIRIM
Tekstil Securities was founded in 1996 as one of the first securities houses in Istanbul. ICBC, world’s largest bank, acquired majority shares of our shareholder Tekstilbank on May 22, 2015. Together with this acquisition ICBC Turkey Yatırım will continue to provide high quality investment advice and unmatched service to its corporate and high net worth retail client base in 20 branches across Turkey.