TÜRİB Futures Market Introductory Meeting Held at Izmir Commodity Exchange

The TÜRİB Futures Market Introductory Meeting was held at Izmir Commodity Exchange, in cooperation with ElüsMarket Commodity Market Intermediary Institution (ÜPAK) Inc., İş Yatırım Menkul Değerler Inc. and the Turkish Mercantile Exchange (TÜRİB).

Delivering the opening speech, Işınsu Kestelli, Chairwoman of the Board of Directors of Izmir Commodity Exchange and ElüsMarket ÜPAK Inc., said, "Türkiye has a vast agricultural and food economy. We produce, process and export to all corners of the world. However, agricultural commodity prices are no longer determined solely within Türkiye. Developments anywhere in the world can affect the costs of producers and industrialists in Türkiye. Indeed, many companies in Türkiye currently use global futures markets to manage price risks, particularly for agricultural commodities traded internationally. This raises a very important question: Why shouldn't Türkiye, as one of the world's major agricultural and food producers, manage more of the price risk associated with its own agricultural products through its own organized markets? I believe this is precisely where the significance of today's initiative lies. In fact, this journey has a long history in Türkiye, and Izmir Commodity Exchange has played an important role from the very beginning."

Kestelli: We Must Build Stronger Markets for Stronger Production

Emphasizing an important principle rooted in the history of Izmir Commodity Exchange, Işınsu Kestelli stated, “We strive not only to meet today's needs but also to establish the infrastructure for tomorrow's markets. The journey of futures markets that began with the Turkish Derivatives Exchange (VOB), the physical infrastructure strengthened through licensed warehousing, commodity trading digitalized through TÜRİB and Electronic Warehouse Receipt (ELÜS) markets, and now the TÜRİB Futures Market are all parts of the same transformation, making Türkiye's agricultural markets more modern, transparent and predictable. We want to see not only commodity buyers and sellers but also qualified investors participating in the market, and we believe this transformation must now accelerate. Türkiye needs to stand out in agriculture not only through its production capacity but also through the strength of its markets. We must establish stronger markets for stronger production and manage price risks more effectively to create a more competitive agricultural sector. An important step in this process is being taken in Izmir today. Our responsibility from this point forward is to develop this market together, communicate its benefits effectively and ensure that it meets the real needs of the sector.”

Kestelli added that both Izmir Commodity Exchange and ELÜSMarket ÜPAK Inc., established through a partnership between 21 commodity exchanges and İş Yatırım, had been looking forward to the launch of the futures market. She said, "We are ready with both our technical infrastructure and our experienced human resources. I believe that the TÜRİB Futures Market will make a significant contribution to developing a risk management culture in Türkiye's agricultural sector and enabling our agricultural economy to look toward the future with greater confidence. With these thoughts, I would like to thank ELÜSMarket, İş Yatırım, TÜRİB, our distinguished panelists and all sector representatives who participated in our event. I hope the outcomes of this meeting will bring positive results for our country's agriculture and markets."

Following the opening speech, a panel titled "Developments in Futures Markets" was held as part of the meeting. Moderated by Dr. Erçin Güdücü, Secretary General of Izmir Commodity Exchange, the panel featured Ali Kırali, General Manager of the Turkish Mercantile Exchange Inc.; Burak Kınalılar, Deputy General Manager of İş Yatırım Menkul Değerler Inc.; Haluk Tezcan, Honorary President of the Turkish Flour Industrialists' Federation (TUSAF); Bülent Uçak, Vice Chairman of the Board of Directors of Izmir Commodity Exchange and Chairman of the Board of Directors of ELİDAŞ; and Dr. Tolga Uysal, Founder of Deriva Consultancy.

Key topics discussed during the panel included agricultural commodity futures markets, risk management, licensed warehousing, the ELÜS market and the current state of futures trading.

Explaining the market structure designed for the TÜRİB Futures Market, which is targeted to become operational by the end of this year, Ali Kırali stated, “We initially plan to launch with wheat and corn contracts. Contracts based on electronic warehouse receipts (ELÜS) have been designed for physical delivery, while index-based contracts will be cash-settled. Konya is being considered as the initial physical delivery location due to its intensive grain production and central logistical position. We have established a flexible infrastructure that will allow us to expand the range of underlying assets and delivery locations in the future. We aim to ensure active participation in the futures market not only by producers and industrialists but also by investors, thereby increasing market depth.”

Discussing İş Yatırım's role in the TÜRİB Futures Market, Burak Kınalılar said, “At İş Yatırım, we see ourselves as a bridge between agricultural markets and capital markets. We believe we can transfer our experience in brokerage services, derivatives and risk management in the capital markets to this new ecosystem.”

Highlighting that hosting the TÜRİB Futures Market Introductory Meeting in Izmir represents a significant opportunity for Türkiye, Haluk Tezcan stated, “If we manage this process effectively, we have the opportunity to become one of the world's major agricultural supply centers. To achieve this, we need to establish ourselves as a hub by leveraging today's technology and financial resources. As a country, we have sufficient knowledge and strength to accomplish this.”

Uçak: We Must Build an Efficient and Transparent Agricultural Production System Capable of Rapid Adaptation

Emphasizing the necessity of establishing an efficient and transparent agricultural trading system for the future of Türkiye's agricultural sector, Bülent Uçak, Vice Chairman of the Board of Directors of Izmir Commodity Exchange and Chairman of the Board of Directors of ELİDAŞ, stated, “We must ensure that licensed warehousing operates at full capacity, deepen electronic warehouse receipt trading and launch a futures market that enables protection against price risks. With the introduction of the futures market, businesses will be able to reduce their risks by managing future prices, while the participation of traders and industrialists will contribute to the formation of healthier and more transparent benchmark prices. Commodity exchanges have important responsibilities in ensuring the success of this process. As Izmir Commodity Exchange, drawing on our long-standing experience in futures markets, we aim to explain to producers, traders and industrialists not only how futures trading works but also the benefits it can provide to their own commercial activities, thereby contributing to a better understanding of the market.”

Comparing commodity exchanges in Türkiye with those abroad from an investor's perspective, Dr. Tolga Uysal stated that agricultural sector stakeholders need futures markets to hedge against price risks and emphasized that the initiative launched by TÜRİB would be highly successful and beneficial in this regard.