Equities are negotiable instruments issued by a corporation and representing a capital share of the corporation.
Holding the equity of a corporation means being a partner of that company.
Safe and accurate flow of information is essential in the trading of equities.
Confidence, transparency and investor protection are the fundamental principles of Borsa İstanbul markets. Shareholders can reach any information about the companies traded on Borsa İstanbul via the Public Disclosure Platform.
Exchange traded funds (ETFs) are mutual funds traded on equity-exchanges, which are based on an index and aim to reflect the performance of its base index to the investors.
ETFs are issued based on an index, and invest in the securities on its base index in proportion to their weight in the index. Therefore, for example, an investor willing to invest in BIST-30 index invests in an ETF rather than purchasing the equities of the index separately, and has the opportunity to invest in that index, and benefits from the proceeds of the index.
Exchange traded funds are portfolios created by authorized intermediary institutions through the purchase of securities on the base index using the cash collected from investors. ETFs reflect the returns on the equities or other instruments (gold, bond, foreign exchange, etc.) on the base index.
The basic characteristic of ETFs is that their participation certificates can be traded on Borsa İstanbul just like equities. Exchange traded fund shares can be traded on the Borsa İstanbul Fund Market through intermediary institutions like equities.
Listed ETFs and Their Websites
Warrants are capital markets instruments that give the holder the right, but not the obligation, to buy ('call' warrant) or to sell ('put' warrant) an underlying asset at a specified price (the 'strike' price or 'exercise' price) on or before a predetermined date where such right is exercised by registered delivery or cash settlement. The holder of a warrant buys not the underlying security itself, but the right to buy or sell such underlying security, against the payment he makes.
Warrants;
-are securitized options;
- listed on a stock exchange and traded in the relevant market segment.
- traded in the secondary market.
- settled in the same way as other securities.
-are financial instruments of type called “structured products” are not issued for financial needs of the issuers
-are solely under the responsibility of the issuer.
-entitle the holder to buy (from) or to sell (to) the issuer an underlying security, a basket of securities, or an index, on or before a particular date, at a predetermined price, against the premium he pays.
-represent a right, and not an obligation, for the holder.
The basic principles regarding the issue, issuers, registration, and trading of warrants are regulated by the Capital Markets Board of Türkiye (CMB) by its Communiqué Series III No: 37 Regarding the Registration with the Capital Markets Board of Türkiye and Trading of Intermediary Institutions’ Warrants at the Stock Exchange. According to the said Communiqué, warrants are traded on Borsa İstabul.
The procedures and principles regarding the listing and trading of warrants on Borsa İstabul are stipulated by İMKB's Circular no.318, dated Jan 5, 2010.
Warrants may be traded on Borsa İstabul provided that they are supported through market making activity by their issuers or the brokerage companies contracted by the issuers. In order to provide a liquid and well-regulated market, the market maker is required to give quotations continuously.
Similar to warrants, certificates are also financial instruments which impose financial liabilities on the issuer against the investor. Funds obtained through issuance of certificates are under personal financial liability of the issuer. For this reason, it is important to consider factors such as the issuer's financial situation, payment ability and credibility during investment process.
Certificates are structured financial products, characterized as securities, which provide their investor with a right of claim upon occurrence of certain pre-determined conditions.
Although certificates are traded with almost the same rules as warrants, some transaction rules may differ depending on the certificate types. Investors should pay particular attention to these issues during certificate transactions.
Participation certificates of venture capital investment funds and real estate investment funds (funds) shall be listed and traded in the Equity Market following an approval of prospectus or issuance document by Capital Markets Board and upon application from the founder provided that there is a related provision in their prospectus or issuance document.
Market
Among the funds that are approved to be listed and traded, the ones offered to public shall be traded in Structured Products and Fund Market (SPFM) and the ones offered to the qualified investors shall be traded in Venture Capital Market (VCM).
Only qualified investors are allowed to trade in Venture Capital Market (VCM).
Having received the buy or sell order to convey to the Exchange, the member is obliged to confirm that its customer is a qualified investor before sending the order. Otherwise, the related member will be legally and financially bound in the event of transactions made against the regulations.
Trading Method
In VCM, funds are traded with continuous trading (they are included opening and closing auctions) in accordance with the resolution of CMB.
In CSPM, certificates shall be traded with continuous trading method (also included in the opening and closing sections of the session). In case of request from the founder or portfolio management company, liquidity providing or market making activities can be carried out for these instruments.
Trading Unit
Trading unit of the funds is lot. One participation certificate of a fund is equal to 1 lot.
Base Price
Unit price of the fund determined by the founder or the portfolio management company and announced in Public Disclosure Platform (PDP) before the first trading day shall be taken as the base price on the first trading day in the Exchange. In the following days the base price is determined by the current method applied in the Equity Market.
Price Margin:
Price margin shall be applied as 20%.
Price Ticks
Price ticks and price ranges for ETFs shall also be applied for the funds.
Feature Code (Extension)
Feature codes for real estate investment funds are listed below:
| Feature Code | Explanation |
|---|---|
| .F1 | Participation certificates of real estate investment funds |
| .TF1 | Buy-In transactions for participation certificates of funds |
Feature codes for venture capital investment funds are listed below:
| Feature Code | Explanation |
|---|---|
| .F2 | Participation certificates of venture capital investment funds |
| .TF2 | Buy-In transactions for participation certificates of funds |
Maximum Order Value
Maximum order value will be 3 million TL.
Gross Settlement, Margin Trading and Short Selling
The funds that are traded in VCM shall not be subject to margin trading or short selling, in accordance with the related CMB resolution. According to the same resolution, certificates are subject to gross settlement and are categorized under group "D".
The funds that are traded in CSPM shall not be subject to margin trading or short selling as well. General Clearing and Settlement Principles for Equity Market (by netting off) will be applied.
Circuit Breaker
Circuit breaker shall not be applicable to the trading of funds.
Principles Related to Clearing and Settlement
Clearing and settlement of fund trades shall be carried out on the second workday following the transaction day (T+2) by Takasbank in accordance with its own regulations.
Exchange Fees
Exchange fees in effect for equities shall be applied but order cancellation, price worsening and volume reduction fees shall not be charged for the trading of funds. In cases where market making activities are carried out, discount that is applied for market makers in equities shall also be effective for the funds.
Suspension of Trading and Delisting
In accordance with the first paragraph of article 31 of the Borsa İstanbul Listing Directive that regulates the conditions for trade suspension and delisting, trading in funds shall be suspended and funds shall be delisted in below conditions:
a) Type change or liquidation of the fund for any reason,
b) Termination of the fund,
c) Detection of breach of public disclosure obligation regulated in Annex 5 of the CMB's Communiqué on Principles of Exchange Traded Funds numbered III-52.2 for the third time in last year,
d) A request from CMB against the trading of funds in the Exchange
Trading in funds -which are founded for a specific time period- are to be suspended upon a written request from the founder or portfolio management company, 3 business days prior to the termination.
Public Disclosure
Founder of the investment fund that is being traded in the Equity Market shall disclose material information that may affect investors' investment decisions and documents and reports that are stated in related CMB Communiques, at Public Disclosure Platform.
The real estate certificate, as drawn up by the Capital Markets Board (CMB), is a capital market instrument with equal nominal values that represent certain independent units of a real estate project or certain area units of these independent units. These certificates are issued in order to finance real estate projects that are being built or to be built.
Real estate certificates offer financing options to their issuers through the capital market. Thus, the construction of residential and commercial projects can be completed more easily and quickly. Trading of these certificates, which are an alternative product for investors who want to invest their savings in the capital market, at Borsa İstanbul provides transparency and liquidity.
In order for the real estate certificates to be issued and traded on the stock exchange, applications must be submitted to CMB and Borsa İstanbul concurrently. Real estate certificates, may be issued by public offering or selling them to qualified investors without public offering domestically or internationally.
Principles for Trading of Real Estate Certificates at Borsa Istanbul Equity Market (in Turkish)
- Commodity Certificates are capital market instruments issued to represent a specific commodity. Commodity certificates are alternative investment tools for investors willing to invest in precious metals such as gold, silver and other commodities in the spot market.
- Commodity certificates that are deemed appropriate to be traded on the Exchange are traded with the extention of “S1” feature code on the Commodity Market segment while the ones offered to qualified investors shall be traded on the Venture Capital Market segment in the Equity Market.
- Commodity certificates are traded with continuous trading method and are included in the opening and closing auctions of the session.
- First price of the commodity certificates will be announced by the issuer and/or the market maker one day prior to the first trading day on Public Disclosure Platform (https://www.kap.org.tr/en/) and this price constitutes the base price. In the following days the base price is determined by the current method applied for equities.
- Price margin is applied as 5%, price tick is applied as 1 Kr. in each price level and maximum order value is applied as 1 million TL for commodity certificates.
- Clearing and settlement of commodity certificate trades shall be carried out on the second business day following the transaction day (T+2).
- Mint Gold Certificate (ALTIN.S1)
- is a commodity certificate issued by the Turkish State Mint and Security Printing (Mint) and is traded on the Exchange. Mint Gold Certificate is a capital market instrument representing 0.01 grams of gold with 0.995 purity each and allowing its holder to convert the certificates to physical gold within the scope of the Prospectus published on PDP.
- (https://www.darphane.gov.tr/darphane-altin-sertifikasi).
- ALTIN.S1 has been approved to comply with the principles and standards of participation finance (You can access the related decision here).