Abstract:

As a result of increase in uncertainties and price fluctuations in the financial markets, increase in the need of hedging, and the speculators’ demand to benefit from high leverage effect and new opportunities have raised trading volume of derivatives markets to very high levels. The aim of this study is to examine both the development of derivatives exchanges globally and the place and the development of derivatives exchanges in Turkey in organized derivatives exchange in the world. The most significant factors preventing the development of derivatives exchanges in Turkey have been economic and political instability, and high inflation. The foundation of TurkDEX has enabled hedging opportunities for risks appearing nationally and internationally, and new investment opportunities. Although TurkDEX does not have a long historical background, it has shown a rapid growth. When an assessment is made considering the share that each futures contract receives from trading volume, it can be said that there is a higher risk perception against foreign exchange risk in comparison to interest rates risks in Turkey. TurkDEX is not known enough by the firms in Turkey, and how futures contracts can be used in hedging is not known sufficiently. Starting trading of options and launching licensed warehousing activities will make positive contribution to the development of TurkDEX.

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