The fastest growing derivatives market in EMEA and the Americas: Borsa Istanbul VIOP
- Trading volume increase by 52 percent in 2015, reaching all-time record of 90.3 million contracts
- FX Options, Single Stock Futures, and Power Futures achieved four-digit growth and whereas FX Futures, Index Options, and Single Stock Options achieved three-digit growth in 2015.
- FX futures volume reach a record 37 million contracts, up 163 percent
- FX options volume reach a record 1.5 million contracts, up 5,356 percent
- Foreign investor trading volume increase by 122 percent, reaching a record 30 percent of total volume
- Options volume grow by 10 times to a record 2.6 million contracts
- Daily average number of open interest reached 875,314 contracts, up 83 percent
- Retail investors account for 63 percent of the total trading volume
- Power futures volume reach a record 27,949 contracts, up 1,264 percent
Borsa Istanbul Derivatives Market VIOP, the region`s leading and most diverse derivatives marketplace, announces that full-year 2015 total trading volume reach a record of 90.3 million contracts, up 52 percent from 2014. As part of that increase, total options volume grew by 10 times to a record 2.6 million contracts, whereas total futures volume up 48 percent reaching a record 87.6 million contracts. Additionally, daily average number of open interest reached 875,134 contracts, up 83 percent. Trading levels were exponentially up across most products and VIOP continues to be the dominant pool of trading in the region.
There was a surge in demand from international investors for Borsa Istanbul Derivatives Market products in 2015. The total trading volume of foreign investors increased by 122 percent and reached a record level of 30 percent of the total volume. The growth rate of trading volume of international investors is almost four times the local investors` growth rate which is around 33 percent.
Within FX, a record of 37 million contracts was traded, up 163 percent from 2014 when it was already up 27 percent. Launch of current month contract, decrease of price tick, and settlement price changes were the factors for the success of FX Futures. In 2015, the share of foreign investors in FX futures trading volume increased to 36% from 9% in 2014, corresponding to stellar increase of 14 fold in nominal terms.
FX Options volume achieved a phenomenal growth rate of 5,356 percent reaching a record 1.5 million contracts in 2015. Innovative revenue sharing market making scheme enabled tight executable on-screen bid-offer spreads for FX Options. Borsa Istanbul VIOP was also shortlisted in the “Most Innovative New Contract” category at the FOW International Awards for its Non-deliverable USD/TRY FX options contract, offering investors and companies the opportunity to hedge against currency risk at a transparent venue in compliance with best execution principles and with a central counterparty clearing service (CCP).
The share of institutional investors in the total trading volume increased to 37 percent in 2015 from 36 percent. Retail investors are still the dominant segment in the total trading volume with 63 percent. It is still one of the highest retail investors ratio in the world.
In 2015, daily average number of open interest reached 875,314 contracts, up 83 percent. In the last two years, daily average number of open interest is more than doubled.
Within equity, a record of nearly 2.8 million single stock futures contracts were traded, up 1,311 percent; and single stock options reached a record of 850,000 contracts, up 853 percent. In 2015, revenue sharing market making program started for the single stock futures and options and as the volume increase suggests it became quite successful, providing investors on screen executable tight spreads.
In 2015, Power futures trading volume increased exponentially to a record of 27,949 contracts, up 1,264 percent. End of December 2015, open interest in power futures increased 715 fold and reached 4,682 contracts. As we continue to see global energy market turbulence, clients are utilizing Borsa Istanbul VIOP`s power futures for their risk management because of the increasing liquidity thanks to six market makers and central counterparty clearing (CCP) service provided by Takasbank.
In order to increase the risk management awareness of the local investors and corporates, 38 VIOP trainings, seminars, webinars and workshops were organized in 2015. Total number of events organized reached 142 in the last two years. II. VIOP Risk Management Conference, seminars in cooperation with broker-dealers, data vendors, Energy Traders Association (ETD), Webinars, and daily Periscope broadcasts were among the activities of the Borsa Istanbul Derivatives Market in the last year. Additionally, two nationwide real-time simulated trading competitions (VIOPS) were organized. Students and professional traders participated in simulated trading to experience trading and improved their ability to better manage the risks associated with trading these volatile markets. Borsa Istanbul Derivatives Market VIOP is dedicated to providing individuals and institutions with the tools and education necessary in today's fast moving global economy.
Borsa Istanbul 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 equities, equity indices, currencies, interest rates, precious metals, commodities and energy with a central counterparty clearing service.
