Turkcell rolls out SuperDerivatives to aid its currency risk management
13 June 2006 | 2128 views | 0
SuperDerivatives, the benchmark system for options and the leading provider of option pricing, trading and risk management systems, has licensed its award winning SD-FX™ foreign exchange pricing system to leading Turkish mobile phone company Turkcell.
Turkcell, which is the only Turkish company with a dual listing on the New York Stock Exchange, says it uses SD-FX for its currency hedging and risk management purposes. "SD-FX allows us to check market prices for all the options we want to use before approaching our counterparty banks. It really speeds up the process of pricing and then transacting our hedging strategies," says Murat Erden, head of treasury at Turkcell.
Erden adds that the wide range of option classes and embedded structures in SF-FX are also extremely useful. "SD-FX is extremely flexible and it has all of the type of structures we make use of, such as dual currency deposits. We also make full use of SD-FX’s powerful risk management functions. We use it to carry out daily and quarterly mark-to-market revaluations our portfolio. SD-FX helps us meet our audit requirements," says Erden.
"This is extremely important. It took us considerable time to get regulatory approval to use options and one of the key requirements we have to have is transparency. We have considerable exposure in dollars, euros, Swedish krone and obviously Turkish lire. SD-FX has injected transparency into the options market and it has played a significant role in helping a domestic market develop in Turkey," concludes Erden.
David Gershon, President and Chief Executive of SuperDerivatives says that Turkey is a perfect example of how the introduction of transparency speeds development in options markets. "Turkey is not an isolated case. We have seen identical patterns emerge in all the markets SuperDerivatives has been adopted in. By delivering transparency, more participants have the confidence to start to use options and the market becomes more liquid. This allows them to really manage their currency exposure effectively and efficiently, which benefits everyone."
SuperDerivatives’ products are used by numerous companies from both the buy and sell side. SD-FX is used by almost all the banks around the world that are active in currency options, and numerous corporations and hedge funds, auditors and central banks.