What is Commodity Exchange? What Does It Do?
The commodity exchange is an institution that determines, registers and announces the purchase and sale of goods registered in the stock exchange and their prices. Commodity exchanges operate under the Union of Chambers and Commodity Exchanges of Turkey (TOBB) and have public legal personality. The purpose of commodity exchanges is to regulate commercial relations in accordance with the law, to bring together buyers and sellers, to provide a free competition environment and to contribute to the effective functioning of the market mechanism.
Commodity products are generally traded on commodity exchanges. Especially agricultural products constitute an important part of trade exchanges. The prices of goods traded in commodity exchanges are determined according to the balance of supply and demand. There is only one price formation in commodity exchanges. In other words, different prices cannot occur for the same product at the same time. People who want to trade in commodity exchanges must be members and register on the exchange. Thus, commercial transactions are carried out under the record and reliability is ensured.
The number of commodity exchanges can increase or decrease according to the needs. There are currently 113 commodity exchanges in our country. The establishment, supervision and closing of commodity exchanges are done by TOBB. Commodity exchanges are organizations that make significant contributions to economic development and commercial life.