ISTANBUL (Turkey), May 13 (SeeNews) – Borsa Istanbul said it will launch U.S. dollars/Turkish lira foreign exchange (FX) options trading on its derivatives market, VIOP, on May 16.
“This is the first time in the world that listed USD/TRY option contracts are traded on an organized market. The contracts will offer investors and companies the opportunity to manage currency risks more efficiently," the stock exchange operator said in a statement on Monday.
The FX option contracts will be traded on VOIP with Takasbank as central counterparty (CCP).
The U.S. dollar/Turkish lira FX option contracts trading on VOIP will enable investors to hedge their open currency positions against a certain premium which will be discovered in a fair and transparent environment in the market. Investors will trade without having to take the counterparty risk as Takasbank will act as CCP.
European type U.S. dollar/Turkish lira FX option contracts with cash settlement will be traded between 0910 and 1745 local time.