New instruments on way for energy bourse

ISTANBUL - Anadolu Agency

The Borsa Istanbul plans to launch new financial instruments for energy bourse.

The Istanbul stock exchange plans to introduce new financial instruments for new participants, such as an energy bourse, by 2014 and 2015, Bourse Istanbul (BIST) Vice President Mustafa Kemal Yılmaz, said yesterday during the All Energy Turkey Conference and Exhibition. 

Yılmaz stated that the energy bourse, EPİAŞ, which would by founded within the body of BİST, would be important for the transformation of the energy sector, adding that BIST’s experience would be effective in the formation of pricing mechanisms in energy markets. 

He said BIST would introduce new spots and timed-instruments for different sectors. 

“Our goal is to offer new instruments for different markets’ participants, such as the energy sector, with the aim of risk management in the coming period. We will see it introduced by 2014 and 2015,” he said. 

Speaking at the same event, Energy Ministry Undersecretary Metin Kilci said the share of the Turkish Electricity Transmission Company (TEİAŞ) in the energy bourse would be 30 percent, the share of BIST would be 30 percent, and that of the private sector would be 40 percent. 

Yılmaz said that after founding the EPİAŞ, electricity buying-selling operations would be realized through the markets, adding that the agreements on natural gas and emission products would be concluded within the scope of EPİAŞ.

He also said BIST would be responsible for creating efficient prices and offering market participants hedging instruments. 

Meanwhile, Kilci said Turkey needed to make investments worth around $12 billion every year until 2023 in order to respond to its rising energy demands.