The first Asset-Backed Securities (ABS) issuance using the Wheat Bread Index, calculated by the Turkish Mercantile Exchange (TMEX) based on Electronic Warehouse Receipt (EWR) market transactions for wheat bread, was carried out on 23 June 2023 by Tarfin, through Pasha Bank and with the consultancy of OMG Capital. With this step, an important milestone was achieved in farmer financing and the first financial product based on the TMEX Wheat Bread  Index was introduced to the market.

The ABS indexed to bread wheat prices is a capital market instrument issued through the securitization of deferred receivables from farmers held on the balance sheet of Tarfin, which were transferred to Pasha Bank. Considering that farmers’ incomes are closely linked to agricultural commodity prices, this issuance contributed to the development of the agricultural sector and farmer financing while also offering investors an alternative investment instrument. Thanks to this innovation, investors gained access to a new financial product directly linked to agricultural commodity prices.

Our Exchange continues to fulfill its mission of creating an efficient trading platform that enables healthy and realistic price formation in agricultural markets, thereby playing a significant role in shaping the agricultural ecosystem. Prices formed on our Exchange create an important foundation for the development of agricultural commodity-based financial instruments by supporting farmers’ access to finance, contributing to the stable growth and sustainability of the agricultural sector and fostering transformation within the industry.

• Asset-Backed Securities (ABS)

ABS are capital market instruments issued through the securitization of receivables held on the balance sheet of the originating institution by removing them from the balance sheet. ABS issuances are carried out by Asset Financing Funds or Mortgage Financing Funds. Cash flows generated from the assets transferred to the fund are used for periodic coupon payments and principal repayments to investors purchasing the ABS.

• TMEX Agricultural Commodity Indices

The TMEX Agricultural Commodity Indices, developed by TMEX to address Türkiye’s need for a national-level agricultural commodity price benchmark, have been published since 14 July 2021. Designed to serve as the pulse of agriculture and a guide for both farmers and investors, these indices transform the TMEX EWR Market data set into an important benchmark indicator. They are used to measure the price performance of either a single agricultural product (barley, wheat, corn) or a group of agricultural products (grains) by using transactions executed in the EWR Market. The platforms where TMEX Agricultural Commodity Indices are published are:

• TMEX website: https://seans.turib.com.tr  ; https://www.turib.com.tr
• Data Vendor Companies: MATRIKS and FOREKS data distribution terminal symbols: