Turkish Mercantile Exchange Wins a Prize from IDC Turkey in Digital Transformation Category
Turkish Mercantile Exchange ( TMEX ) came in IDC DX Awards 2020 with its digital solution developed for contracted agricultural production model and integrated into its Electronic Warehouse Receipt (EWR) Market run by it.
Awarded for its Contracted Agriculture FINTECH Solution, TMEX B entered into cooperation with a great number of market actors, thereby giving both buyers and sellers an easy ride, under this project.
Turkish Mercantile Exchange ( TMEX ) is deemed worthy of an award for its TMEX EWR Market Contracted Agriculture FINTECH Solution in “Digital Transformation” category in the contest for digital projects under the roof of IDC DX Summit 2020.
In IDC DX Awards 2020 selecting the champions of digital arena, the organizations and executives coming in with their IT projects realized during the year are awarded. Having been founded in order to give support to stabilized and consistent growth of both agriculture sector and national economy by bringing the agricultural producers and consumers together in a central platform, TMEX is also deemed worthy of an award for its digital solution developed for contracted agricultural production model and integrated into its Electronic Warehouse Receipt (EWR) Market run by it.
TMEX EWR Market Contracted Agriculture FINTECH Solution is a digital solution offered to corporate customers which enter into sowing-planting time purchase agreements with producers within the frame of the contracted agricultural production model. By this solution put into use in June 2020, the commodities stored in licensed warehouses and transformed into EWRs in the name of agricultural producers are traded safely and steadily between contractual parties, i.e. buyer and seller, in TMEX EWR Market. Within this process, the non-cash and/or cash payments made by buyers to farmers before harvest are set off and deducted from amounts of trading in TMEX at the time of settlement/clearing within the frame of full automation. Thus, not only the operational risks in recovery and collection of advances paid by buyers to producers are reduced, but also efficiency is guaranteed in the legal processes.
Under the Contracted Agriculture FINTECH Solution, cooperation is started in trading in TMEX of the commodities covered by contracted agriculture to be bought by Türkiye Şeker Fabrikaları A.Ş. (TÜRKŞEKER) (Turkish Sugar Factories Co., Inc.) and by cooperatives that are members of the Turkish Agricultural Credit Cooperatives (TARIM KREDİ). Thus, TÜRKŞEKER and TARIM KREDİ buy the commodities within the contracted agricultural production model in full automation with TMEX and with licensed warehouses to which their farmers deliver their commodities, and set off from the trading amounts the advances paid by them to their farmers before harvest.
Founded in June 2018, TMEX is engaged in exchange operations for trading of electronic warehouse receipts and of futures contracts on electronic warehouse receipts issued by licensed warehouse operators.
TMEX is working in collaboration with the Union of Chambers and Commodity Exchanges of Turkey (TOBB), T.R. Ministry of Trade, T.R. Ministry of Agriculture and Forest, T.R. Ministry of Treasure and Finance and other stakeholders in such fields and for such purposes as digitalization of food supply chain from field to fork, popularization and generalization of EWRs, development of contracted agriculture, and licensed warehouse operations.