The General Manager of the Turkey Product Specialization Exchange (TÜRİB), Ali Kırali, announced that in the second half of this year, they will transition to a system where product market intermediary institutions (ÜPAK) will facilitate transactions in the Electronic Product Certificate (ELÜS) Market, thus initiating a new era in the financing of agricultural products.
Kırali stated that the initial phase of developing the domestic exchange software project, the TÜRİB Trading System (TÜRİS), has been completed to implement the “intermediary system.”
He shared that tests for integrating the aforementioned system with stakeholders are ongoing. “The establishment of ÜPAK is complete, and the processes for obtaining operation permits from the Ministry of Trade are ongoing. In the second half of this year, we will transition to a system where ÜPAK will facilitate transactions in the ELÜS Market, thus starting a new phase in the financing of agricultural products. While providing producers with broader market access, we will also offer investors a more reliable and organized investment environment,” he said.
Kırali emphasized that the main purpose of integrating intermediary institutions is to expand the reach of the ELÜS Market to a much wider audience, thereby increasing its effectiveness and reliability with more participants. “Regional product market intermediary institutions will broaden the investor base and promote the usage of ELÜS,” he noted.
He added that these institutions would promote the market with their extensive networks across the country. They will operate under the obligation to execute customer orders in the best possible manner and will contribute to the market’s transparency.
Kırali mentioned that since their activities began, they have increased the number of investors at TÜRİB to over 217,000, and this number is expected to rise further with the involvement of intermediary institutions.
“REGULATIONS WILL BE PUBLISHED QUICKLY”
Kırali also informed that the necessary legal regulations for the intermediary institutions operating in the ELÜS Market have been completed, stating:
“In this context, amendments have been made to the Regulation on Intermediary Activities and Supervision and Control of Intermediaries at the Turkey Product Specialization Exchange. Sub-regulations regarding exchange membership and document registration will be published shortly. These regulations will outline the obligations and framework of the intermediaries’ activities.
The upcoming regulations aim to promote compliance with international trading standards and to create a secure investment environment. Institutions carrying out intermediary activities at TÜRİB must obtain operational permits from the ministry. To date, 7 ÜPAK have applied for operational permits.”
“WHAT IS A PRODUCT MARKET INTERMEDIARY INSTITUTION?”
Product Market Intermediary Institutions are authorized entities that facilitate the trading of electronic product certificates and futures contracts based on electronic product certificates on the exchange. According to the provisions of the Regulation on Intermediary Activities and Supervision and Control of Intermediaries at the Turkey Product Specialization Exchange, a “Product Market Intermediary Institution” can be established for the purpose of facilitating electronic product certificate (ELÜS) transactions, provided that more than half of its shares belong to one or more trading exchanges.
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Arwen Volkov, A graduate of the University of St. Gallen in Switzerland with a degree in International Finance, Arwen specializes in sustainable finance and green investments. She began her career at an investment bank in London, where she developed financing models for environmentally friendly projects. Known for her analytical and strategic thinking skills, Arwen is a sought-after financial consultant. In her spare time, she mentors fintech startups, contributing to their growth strategies. She is also a nature enthusiast and an amateur photographer.
