Borsa Istanbul’s futures and options market, VIOP, has added steel scrap futures contracts to its extended market making programme based on revenue sharing with effect from 1 October.

The extended programme includes also trading with base-load electricity futures, FBIST ETF futures and Anatolian red wheat futures contracts, the Turkish stock exchange says in a statement seen by Kallanish.

For all steel scrap futures contracts the minimum order quantity requirement is 5. The market maker is responsible for standard contracts in the nearest two maturity months and is not liable to enter orders for non-standard contracts. Market presence, on a monthly basis, is 70% of the total amount during which the market was open. The presence is evaluated on the basis of the best bid and ask limit orders sent by the market maker.

The obligations of the new market making program will be based on minimum order size, maximum spread, and market presence. On the incentive side, exchange fee revenue in the related security types will be shared with market makers, according to the statement.

VIOP’s market making programme started in January 2015. The contracts traded under the programme until October included single stock futures, single stock option, BIST30 index and Mini BIST30 index option, and currency option contracts.

Borsa Istanbul launched its cash-settled steel scrap futures contract in April to offer “… an effective risk management tool for the Turkish steel industry participants in dealing with the increasing volatility of the commodity prices,” as it says. The contracts are quoted and settled in US dollars and have a lot size of 10 metric tonnes.