Frequently Asked Questions
- Which are the regulatory agencies in Turkish securities markets?
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Capital Markets Board: The main supervisory and regulatory authority for securities markets and institutions. CMB is responsible for protecting the rights of investors and determinesthe operational rules of the capital market.
Borsa Istanbul: Borsa Istanbul regulates cash equity and derivatives markets together with listed companies and exchange members.
Central Bank of the Republic of Turkey: Central Bank regulates money and FX markets. The bank determines the conditions of reserve and liquidity requirements and oversees financial stability.
- What are the dynamics of the closing auctions?
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Closing auction consists of four phases; A) Order Transfer Period, B) Order Collection Period, C) Determination of Closing Prices, D) Single Price Auction. The closing auction aims to provide the highest liquidity for each stock at a single (i.e. closing) price. The up and down limits will be calculated over the last execution price at 17:30 with +/-3% limits. If a stock trades at limit down (or limit up) no new limit down (limit up) will be calculated for closing auction. Effectively meaning, afternoon session's limit up and limit down price levels will remain as major boundaries for each stock. There is no closing auction for Warrants, ETFs and right coupons.
17:30 – 17:33 Order Transfer Period for Closing Auction
17:33 – 17:36 Closing Auction Order Collection
17:36 – 17:38 Determination of Closing Prices
17:38 – 17:40 Single Price Auction - How does the settlement process work in Turkey?
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The settlement of equities and cash is completed on T+2 by Takasbank (Settlement & Custody Bank) on DVP (Delivery versus Payment) basis. The settlement operations are run by the Takasbank Settlement Pool Account together with Central Registry Agency.
- What are the buy-in and sell-out rules?
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If an investor fails to fulfill its obligation for a sell order and can not deliver shares on T+2, Borsa Istanbul starts a buy-in process. The same procedure will also be applied in case an investor fails to deliver the required cash to clear buy order.
- What are the market hours?
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Borsa Istanbul has two separate sessions with a noon break. The morning session starts at 09:15 and ends at 12:30, whereas the afternoon session starts at 14:00 and ends at 17:40. The market has two opening auctions at the beginning of each session and a closing auction at the end of the afternoon session. A detailed timetable can be found below,
Morning Session:
09:15 – 09:30 Opening Auction Order Collection
09:30 – 09:35 Determination of Opening Prices
09:35 – 12:30 Continuous AuctionAfternoon Session: 14:00 – 14:10 Opening Auction Order Collection Period
14:10 – 14:15 Determination of Opening Prices
14:15 – 17:30 Continuous Auction
17:30 – 17:33 Order Transfer Period for Closing Auction
17:33 – 17:36 Closing Auction Order Collection
17:36 – 17:38 Determination of Closing Prices
17:38 – 17:40 Single Price Auction - Are there any restrictions for foreign institutional investors to invest in Turkish Capital Markets?
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There are no restrictions for foreign institutional investors to invest in Turkish Capital Markets and TL denominated assets in local markets.
