TurkDEX TurkDEX-ISE 30 Futures ISE 30 Currently Turkey’s most liquid financial product, TurkDEX - ISE 30 Futures Futures offer foreign investors an efficient way of holding equity exposure in Turkey. The underlying asset of TurkDEX-ISE 30 futures is the ISE National-30 Index which is one of the key benchmark indices followed by international investors. The ISE-30 represents an equity index comprising 30 large-capitalization stocks traded at the Istanbul Stock Exchange. Discover the benefits of trading TurkDEX-ISE 30 Futures! Key Benefits Hedging Turkish Equity Portfolios The ISE-30 equity index futures provide the unique opportunity for foreign investors to hedge their spot equity portfolios. Liquidity TurkDEX-ISE 30 index futures have become the most liquid financial instrument within the overall financial system in Turkey. High trading volumes ensure the efficient execution of your trades. The daily average trading volume of the TurkDEX-ISE 30 futures contract exceeds 1 billion USD. According to data from FIA, TurkDEX became one of the fastest growing futures exchanges. No-Action Letter Received from CFTC Tax Advantages Foreign institutional investors are neither subject to any regulatory restrictions nor to any withholding tax on gains resulting from transactions on TurkDEX. Small Contract Size The small contract size of the TurkDEX-ISE 30 index futures (about USD 5,000) attracts all types of investors. Leverage The margin trading at TurkDEX enables investors to use leverage by holding a large position with a relatively low amount of collateral, on which investors also earn interest income. Akdeniz Cad. Birsel Is Mrk. No: 14 Alsancak 35210 Izmir/Turkey Phone: +90 232 481-1081 Fax: +90 232 445-6185 E-mail: email@example.com www.turkdex.org.tr www.aboutturkdex.org TurkDEX-ISE 30 Futures Yearly Total Trading Value (in millions of USD) 278,475 202,808 147,662 84,959 93,898 TurkDEX ISE 30 Futures 433 7,348 * *January-April 2011 Safety and Regulations Thanks to TurkDEX’s effective risk management implementations like the real-time pre-margining system and an extensive guarantee fund, market participants are protected against counterparty risks. A fair, transparent and efficient market structure lies at the core of TurkDEX regulations, which are adapted to market conditions on a continuous basis. Investors' Share of TurkDEX ISE-30 Futures (Open Interest, December 2010) Surveillance The newly designed and developed TurkDEX surveillance system, Local V-OBSERVER, provides effective real-time and post-transaction Foreign 42% monitoring. V-OBSERVER detects any abnormalities in trades, orders 58% or positions in order to ensure a safe and fair trading environment. CFTC No-Action Letter TurkDEX has applied to the No-Action Letter and is currently waiting for the approval of the CFTC. Upon the approval, US Investors will be able to freely trade TurkDEX ISE-30 futures contracts. Contract Specifications Underlying Asset ISE National-30 Index Contract Size Value calculated by dividing the index value by 1,000 and multiplying the quotient by TRY100 (ISE National-30 Index/1,000)*TRY100 (Ex. 70.825*100=TRY 7,082.5) Price Quotation ISE National-30 Index value, divided by 1,000 shall be quoted significant to three decimals Daily Price Limit ±15% of the established base price for each contract with a different contract month Minimum Price 0.025 (25 ISE National-30 Index points) Value of one tick corresponds to TRY 2.5 Fluctuation (Tick) February, April, June, August, October and December (Contracts with three different expiration months nearest to the Contract Months current month are traded. If December is not one of those three months, an extra contract with an expiration month of December shall be launched.) Final Settlement Last business day of each contract month. In case domestic markets are closed for half day due to an official holiday, Day expiry date shall be the preceding business day. Last Trading Day Last business day of each contract month. In case domestic markets are closed for half day due to an official holiday, last trading day shall be the preceding business day. Settlement Method Cash Settlement Final Settlement Arithmetic average of all ISE National-30 Index values executed at the ISE within the last 30 minutes before the close of the Price trading session of the Exchange on the last trading day shall be used as the last settlement price of the futures contract. If the ISE trading session closes before that of the Exchange, as calculation method being the same, calculations shall be made based on the ISE National-30 Index values executed during the last 30 minutes before the closing of the ISE trading session. In case there is a failure or flaw in the calculation of the index and/or import of index values by the Exchange during the last 30 minutes due to technical difficulties, the last settlement price shall be calculated as the arithmetic average of the available data. The last settlement price is rounded to the nearest price tick. Daily Settlement Daily settlement price is established at the closing of each trading session as follows: 1.Weighted average price of all the transactions performed within the last 10 minutes before the closing of the trading session Price based on the quantity thereof shall be established as the daily settlement price. 2.If number of transactions performed within the last 10 minutes before the closing of the trading session is less than 10, weighted average of the last 10 transactions before the closing shall be calculated instead. 3. If the daily settlement price cannot be calculated using the above-explained methods, daily settlement price may be determined by using below explained methods separately or in combination. o weighted average price of all the transactions performed throughout the trading session, o previous day’s settlement price, o average of the best bid and best ask quotations at the closing of the trading session, o theoretical futures prices to be calculated using the interest rate to be determined by the Exchange for the time period until the expiration date of the contract, spot price of the underlying asset or daily settlement price valid for other contracts with different contract months. This publication is only for information purposes and does not constitute an offer, solicitation or recommendation to acquire or dispose of any investment or to engage in any other transaction. All information and descriptions contained in this publication are for guidance purposes only, and should not be treated as definitive. TurkDEX shall not be liable (except to the extent required by law) for the use of the information contained herein however arising in any circumstances connected with actual trading or otherwise. TurkDEX is not responsible for any errors or omissions contained in this publication. No part of this publication may be redistributed or reproduced in any form or by any means or used to make any derivative work (such as translation, transformation, or adoption) without written permission from TurkDEX.