PM: Turkey to establish specialized commodity exchange soon
AA photoPrime Minister Ahmet Davutoğlu has vowed Turkey will soon launch a specialized commodity exchange, adding that the warehousing responsibilities of Turkey’s Grain Office (TMO) would be transferred to the private sector gradually and the office would play a watchdog role in regulating prices.
“A specialized commodity exchange will be established soon. The required regulations will be made in the next couple of months,” he said at a signing ceremony for a cooperation deal between Borsa Istanbul – Turkey’s main stock exchange – and the Konya Commodity Exchange on wheat future contracts on Feb. 25.
Davutoğlu also said the TMO will become a watchdog body which will regulate price fluctuations in the agricultural markets.
“The TMO will quit its warehousing function for grains and this function will be transferred to the private sector,” he added.
In line with the deal between Borsa Istanbul and the Konya Commodity Exchange, Turkey is expected to offer local and international investors the opportunity to trade wheat future contracts with physical delivery, similar to developed countries with advanced capital and commodity markets.
The deal covers the liquidity of physically delivered future contracts with grains, especially wheat.
The agreement also covers sharing data and cooperation in surveillance operations between the two exchanges.