Business

Borsa Istanbul launches new financial products and services

Borsa Istanbul Inc. General Manager Korkmaz Ergun stated that capital markets have a significant growth potential and said that they continue to commission new financial products and services to use this potential.

Korkmaz Ergun made evaluations about the new financial product and services that Borsa Istanbul has recently put into use, and its targets for the upcoming period.

Noting that the capital market has a significant growth potential on the supply and demand side, Ergun stated that they believe that by channeling this potential more effectively, they will go a long way in terms of the country’s economy.

In order to achieve this, Ergun stated that they foresee a target focused on the growth of the markets, where more companies have the opportunity to obtain various sources, a wider and healthier investor base is reached, new financial products and services are developed according to market needs, “As Borsa Istanbul, we make every effort to achieve these goals.”

“WE STARTED TO CALCULATE THREE NEW INDEXES”

Ergun stated that as of today, they started to calculate three new gold-based indices as BIST Spot Gold Index, BIST Gold Bond Index and BIST Gold-Based Lease Certificate Index as of today:

“In these three indices, spot gold prices and exchange rates in international markets will be used simultaneously. Indices will be calculated every 10 seconds during the day. BIST Spot Gold Index will reflect the changes in gold prices, mutual funds investing in physical gold will be able to use this index as an underlying asset or benchmark. The other two indices will reflect the changes in gold prices, as well as the rental yields of gold-backed lease certificates and the interest yields of gold bonds. Thus, the need for an index that can be used as an underlying asset or benchmark by the funds investing in gold-backed lease certificates and gold bonds issued by the Treasury will be met.”

“OUR WORK CONTINUES ON TWO NEW INDEXES”

Ergun stated that in addition to the three new indices that Borsa Istanbul has started to calculate, they will also implement the participation index, which will consist of companies operating in accordance with participation finance standards, and that they plan to increase the product diversity in the field of participation finance with products that will use this index as a benchmark.

Pointing out that the work on sustainability, which is on the agenda as Borsa Istanbul, continues at full speed, to which investors are interested, which is gaining importance all over the world, Ergun stated that while developing the Sustainability Index, they will also launch new products and services in this area.

Ergun also noted that they will harmonize stock market indexes with IOSCO (International Organization of Securities Commissions) principles and meet ESMA (European Securities and Markets Authority) criteria in this field.

“WE CONTINUE TO PROCESS NEW DERIVATIVE PRODUCTS”

Ergun stated that they have made great progress both in terms of transaction volume and product diversity in derivative products.

“As of today, the number of open futures transactions has reached 51 with the 13 shares we have opened for trading. The number of investor accounts in this market has reached high levels. In addition to our existing products, we are working to open new futures contracts on different commodities. In this context, we can say that our work on platinum and palladium futures contracts is nearing the end. In addition, in order to manage the interest rate risks of financial institutions and institutional investors, and to increase the fluidity between the spot market and the futures market and to ensure effective price formation, Government Domestic Debt Securities Futures Contracts, whose underlying asset is government securities, will soon be traded in the Futures and Options Market. Thus, we aim to provide investors and companies with the opportunity to both invest in new products and risk management. Finally, we plan to increase the liquidity in our options markets in the coming period with the updates we made in the market-making program, which plays an active role in the development of our derivatives markets.”

“INTEREST OF COMPANIES IN PUBLIC OFFER CONTINUES”

Expressing that the companies’ interest in Borsa Istanbul continues to increase, Ergun stated that this year, approximately ₺12 billion was obtained from the public offerings of 26 companies.

Stating that they expect this number to increase by the end of the year, Ergun said, “Last year, ₺1.1 billion was provided with 8 public offerings.”

Ergun continued his assessment as follows:

“Our meetings with industrial and commercial companies, which are the dynamo of the growth of our country, continue. Instead of sharing the operating profits of our companies with the banks as financial expenses, we aim to make use of public offerings and different capital market instruments, to share some of their profits with the public, and to strengthen the equity of the companies with the remaining profits.”

Stating that they have developed their venture capital opportunities, Ergun noted that they continue the necessary infrastructure works in order to meet the financing needs of early-stage startups on their journey to the public offering.

Ergun noted that they brought the opportunity to trade with new order types in order to provide ease of trading in the precious metals market.

Noting that a new system, where members can transmit the instructions to be used during their transactions electronically, has been put into practice, Ergun reminded that the warehouse established within the precious metals market for the purpose of keeping precious metals within the framework of customs legislation has been put into use.

“WE ARE WORKING IN LINE WITH OUR GOAL TO INCREASE FINANCIAL LITERACY”

Ergun, noting that the Borsa data center has been expanded to facilitate fast and secure market access for all stakeholders, including investment institutions and service providers, said that in this way, Borsa Istanbul is an Exchange that can be easily accessed by all investors, offers alternative access opportunities according to different needs and provides services at international standards.

Stating that they continue to provide all services uninterruptedly as Borsa Istanbul during the epidemic that affects the whole world, Ergun stated that they have passed a very serious test as the sector and that they have been able to keep up with the changing conditions quickly.

Ergun stated that there was a serious increase in the number of investors, and added saying they aim to increase the financial literacy of investors and ensure that they become conscious investors, and in this context, they carry out activities such as promotional videos, web-based seminars, financial literacy publications at TRT EBA and financial support for the research reports of intermediary institutions.

Source: Sabah / Translated by Irem Yildiz

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