On 22nd October 2021, Borsa Istanbul announced that it has launched USD/TRY Futures and Options Contracts with physical delivery in the Derivatives Market (VIOP)
In addition to the existing cash-settled foreign exchange contracts, these contracts will be traded with physical delivery at the end of the maturity. They will provide companies, most specifically companies in the real sector and foreign trade, which have a foreign currency position in their balance sheets due to their activities, to manage their exchange rate risks in a more competitive, secure, and transparent platform. These contracts through which real persons cannot transmit orders will ensure that financial institutions with no credit limit or have a limit problem in times of financial stress will make transactions with each other under the assurance of a central counterparty.
Besides standard maturities, the flexible maturities provided will enable companies to protect their FX positions without maturity mismatches, just as they do in forward and option contracts with banks. Thus, companies will have the opportunity to access more competitive prices by getting prices from the banks they actively work with and have a credit limit as well as all of stakeholders who have access to Borsa İstanbul.
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