Borsa İstanbul Derivatives Market (VIOP) Expands Its Market Making Activities In Electricity Futures

Odaş Elektrik Üretim Sanayi Ticaret A.Ş., along with Is Investment became market maker for Electricity Futures Contracts on January 4, 2016. With this new addition, Is Investment expanded its market making activities in electricity futures to three different market markers.

The contract months for Electricity Futures Contracts were increased from 4 to 16 months. Additionally, minimum order size is reduced in the trade reporting, and with the help of six market maker institutions, the energy sector participants can effectively use VIOP electricity futures for their risk management with a central counterparty clearing service. Thanks to the new market making program, increased number of contract months, and reduced minimum order size of trade reporting, the trade volume in electricity futures is expected to accelerate in the coming months on top of its fast growth since June 2015.

Borsa İstanbul VIOP has been offering central counterparty service through Takasbank for all the products traded on VIOP since March 2014.

VIOP Electricity futures are traded at lower costs compared to OTC platforms. Besides, stamp duty tax is not applicable on VIOP contracts whereas approximately 1% stamp tax is collected in OTC platforms.

In brief, investors can trade on VIOP Electricity Futures with the help of 6 market makers without being subject to counterparty risk, stamp tax and high brokerage fees. 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.