Borsa Istanbul, ICBC Turkey partner on Chinese Renminbi futures

Borsa Istanbul and ICBC Turkey Invest have unveiled plans to launch US Dollar/Chinese Renminbi (USD/CNH) and Chinese Renminbi/Turkish Lira (CNH/TRY) futures contracts.

ICBC Turkey Invest, the brokerage arm of ICBC Bank Turkey, intends to apply to be the market maker in Chinese Renminbi futures contracts set to be launched at Borsa İstanbul Derivatives Market (VIOP), pending regulatory approval.

“ICBC Turkey Invest 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 Oraj Özel, CEO and Board Member, ICBC Turkey Invest.

ıcbc-logo“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 Gao Xiangyang, CEO and Board Member, ICBC Turkey Bank and Chairman, ICBC Turkey Invest.

“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 Investment 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 Çetin Ali Dönmez, Executive Vice President, Borsa İstanbul.

The plans are unveiled as trading volumes of Forex futures at Borsa Istanbul keep growing. According to Muammer Çakır, Head of Derivatives Market (VIOP), Borsa İstanbul, the total trade volume of FX futures at Borsa İstanbul Derivatives Market has increased by 220% in 2015 year on year. As of today, Forex contracts account for more than 20% of the overall trading volume at the Exchange.

To view the official announcement on the collaboration, click here.

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