Market Functioning

Market Functioning
Order Types
  1. Limit Orders
  2. Market Orders
  3. Market To Limit Orders
  4. Imbalance Orders
  5. Market Maker Quotes
  6. Mid-Point Orders
  7. Short Sell Orders
  8. Trades at VWAP
  9. Odd lot Orders
  10. Conditional Orders

ORDER TYPES

Limit Orders

Orders in which price and quantity must be specified. If the trade is not executed in part or in whole at the time it is entered, the unexecuted part is placed among pending (passive) orders of the equity as per price and time priority ranking.

Market Orders

Orders in which only the quantity must be specified without price. These type of orders match with the best bid or ask on the order book up until order quantity is contained and the rest is deleted if there is no order left on the opposite side. Market orders placed in a call auction phase are kept on the book until the matching state, and are executed in the matching state. If the market order does not match, it is deleted and not transferred to the continuous trading session. Market orders are subject to specified maximum order value limit of each instrument. The limitis calculated with the ever-last price. In cases where no trade price is available, the last closing price is addressed, and if that is not available, any referance price is checked. Where none of the above exist, the system prevents the placing of a market order until a trade occurs.

Market to Limit Orders

Orders in which only the quantity must be specified without price and can only match with the best bid or ask on the order book. Remaining amounts from the execution are transformed into limit orders and placed in the order book with the execution price (given the time validity of the order is not fill and kill). Market to limit orders are subject to the specified maximum order value limit of each instrument. This value is calculated in the same manner with the market orders.

Imbalance Orders

These orders can be employed to trade with the orders that are not matched at the auction price during price setting period at all call auction sessions including opening and closing. Unmatched imbalance orders are deleted.

Market Maker Quotes

Market maker quotes is the statement of a price and quantity conveyed by the market maker member in the form of a bid and ask order. Market maker quotes can be canceled as a whole or each side (buy/sell) can be canceled separately.

Mid-Point Orders

Mid-Point order is a type of order allowing matching of high quantity orders among themselves and providing lower transaction costs to the market participants, compared to the order book (lit order book) . Mid-point orders’values, as per the related regulation, are to be TRY 100.000 as the minimum and TRY 30 million as the maximum. However, such limitations would not be applied for the remaining part after the event of a partial match.

Orders are subject to automatic matching and priced as the arithmetic average of the best bid and best offer prices pending in the order book; these type of orders are traded in a separate and dark order book. The quantity info is sent to the market after execution of the transaction, trading volume and value shall be included in the quantity and volume of the related stock.

Mid-point orders and trading shall be used only for the stocks included in BIST-30.

Mid-Point orders are used only for shares under BIST 30.

Short Sell Orders

A short sell order is the type of order given for the sale of unowned capital market instruments. The price limits for these type of orders, are determined by the CMB (Capital Markets Boards of Turkey) and exchange regulations.

Trades at VWAP

A new order/ trading type also called as “Trade at Reference” (TAR) allowing trades at volume weighted average price (VWAP). It is planned to execute trades throughout the day taking the VWAP as the price which is to be discovered at the end of the day or at certain tick up / or down from such price for a stock. In this manner, in addition to allowing realization of trades at VWAP to be established at the end of the day,

  1. There are options to trade throughout the day at VWAP or +/- min. and max. number of price ticks away from VWAP which is set by the Exchange for a particular stock.
  2. VWAP orders are traded on a different order book (e.g. ABCDE.AOF titled order book)
  3. Information about executed trades are not disseminated to market however trades are included in the daily bulletin.

Minimum quantity of VWAP (TAR) orders is 100,000 lots and the maximum is 3 million lots. The maximum amount in TRY may be set in addition to quantity limit (no limit on minimum TRY amount). In calculation of maximum amount in TRY, the latest trading price is used in the related stock. These values are parametric, and may be changed by stock or for the entire market with a prior notice.

Odd lot Orders

Odd lot trading is to be realized for quantities less than one unit for a stock. The trade shall be priced at the last trading price . For example, a trade of 0.3 unit executed for ABCDE.KE (odd lot) shall have the price of the last trade executed at ABCDE. (Will not be in effect at startup)

Conditional Orders

For these type of orders, certain conditions may be defined for activation or execution of the order. There are four types of conditional orders:

a) Quantity Conditional order: Such orders are not executed where all of the quantity stated in the order at certain price level would not be matched fully. They would be executed only if all of the quantity stated in the order would be matched. An example for such type of orders: All or None (AON) orders Fill or Kill orders. (Will not be in effect at startup).

b) Price Conditional order: Such orders are activated or executed in the order book only if the current price of a stock or the best bid and offer price in the order book would reach the price level stipulated in the order as the condition for execution. (Will not be in effect at startup)

c) Time Conditional order: These orders are activated at a predefined part of the session or entered to be valid for a certain part of a session (for example, orders to be valid at open / at close). (Will not be in effect at startup)

d) Partial Display Conditional Order (Iceberg Order): Limit orders may be entered with partial display condition. For these type of orders, when displayed quantity is executed, the predefined quantity in the hidden part would be exposed. The exposed part would be entered into the order book subject to price and time priority as if it is a new order. This process shall be repeated until matching of all of the order, expiry of the duration of the order or cancellation of the order. The order type was launched in 27/06/2016 on the Equity Market. When entering or modifying an order, the ratio between the shown quantity and the total quantity of the order must be at least 20%.

TRADE REPORT

When the Exchange members receive matching buy and sell ordersfor the capital market instruments traded in the Equity Market within predefined price and trade value (may be defined as quantity) limits, they are allowed to report such orders as executed among themselves without sending them to the order book as common orders. Such notifications will be converted into transactions after the required controls in the Exchange System shall be made and trade report notifications will be released thereafter. However, trade report will only be allowed within the limits which are set by the Exchange.

Trade reporting price limits are determined as two level.

a) First level: The minimum amount required for trade reporting is 3 million TL and the maximum amount is 30 million TL. Within this amount, trade reporting can be realized within ± 6% price limits over last trading price of the related share.

b) Second level: The minimum amount required for trade reporting is 30.000.001 TL and the maximum amount is 150 million TL. Within this amount, trade reporting can be realized within the ± 10% price limits over last trading price of the related share.

Two types of trade reports are supported by the system:

1. One sided trade report: is employed when the parties of the transaction are 2 different members. One of the members fill its side (buy or sell) with quantity, price, client information and names the opposite party. When the opposite party receives the trade report, it accepts and provides its side of client information to match the trade report.

2. Two-sided trade report: is employed when the buyer and seller is the same member and reports and crosses a trade by filling volume, price and client information for both buy and sell sides.

ORDER VALIDITY

1. Day Order

This is an order validity type where the order stays at the order book until the end of the day. In case of no match until the end of the day, the order will be deleted. In case of partial match, remaining unmatched quantity is kept in the order book until the end of the day and if there are any remaining quantity at the end of the day it will be deleted by the system.

2. Fill and Kill (FaK)

This is an order validity type where the whole order in case of no match, or the remaining quantity in case of partial match is deleted automatically and not kept passive at the order book, at the instance of which the order is placed. (Will not be in effect at startup)

3. Good Till Cancel

Good till Canceled is a Time in Force condition whereby the order remains in effect until it is fully executed, canceled or instrument expires. This order validity is used only in IPOs with book building method in Equity Market. Orders remain in the order book of IPOs until the end date.

4. Good Till Date

Orders that remain valid in the System within the scope of price margins and price ticks, until processed or canceled by specifying the deadline for validity. Maximum days these orders can be kept in the order book is to be specified by the Board of Directors. However, good till date orders are not available in the Equity Market for the time being.

Price Margins and Price Limits

Base Price, Price Bands

“Base price” is the price which constitutes a base for determining the upper and lower price limits of an equity between which it can be traded during a day. “Base price” is calculated by rounding the "closing price” of the previous day to the nearest price tick. "Price tick" is the smallest price variation that may occur once at a time for each equity.

If there is no base price (i.e. where there is no previous closing price or margins are set free):

  • Matching price determined after order collection period in which the first price is established for the stocks traded with single price trading method, shall be used as the base price.
  • For the stocks traded with continuous trading method, the base price will be the price of the first trade. (If any price is established in opening session then that price, and if not established, the price of the first trade to be realized at continuous trading period shall be taken as the base price).
  • For the preemptive rights, no base price shall be used on the first day till the day when a price is set, and the closing price of the first trading day shall be used as the base price for the next day. (as it is currently)

Besides, if no trade is made within the day on a stock having a base price from the previous day, same base price will continue to be used as the base price for the next day (as it is currently).

No base price shall be applied for warrants and certificates.

Price Margins and Price Limits

The margins to be applied on the base prices of a securities (i.e. closing price of a the previous day) in order to determine the price limits for a day are given below (free margin may be applied at the certain equities and ETFs where necessary):

  • Securities traded in BIST Stars 20%,
  • BIST Main Market 15%,
  • BIST SubMarket, Watchlist Market, Pre-Market Trading Platform securities are traded with 10%
  • Exchange Traded Funds (ETFs) are traded with 20%,
  • Pre-emptive rights and ISKUR.E are traded with 50% margin.
  • Free margin for warrants and certificates.

In calculation of price limits, rounding process will be made inwards. The rounding to the nearest upper tick in finding upper price limit in the existing application shall be made to the nearest lower tick in the system as the rounding to the nearest lower tick in finding lower price limit shall be made to the nearest upper tick.

The price limits applied in the closing session are applied as ± 3% on the last transaction price before the closing session.

Above trading principles are general principles, however it must be noted that applications implied by our announcements 2020/20, 2020/21 and 2020/50, CMB decisions are still in effect until further notice. In addition, principals on price margins stated in the latest Announcement on New Market Segmentation in Equity Market is will be in effect until further notice. Due to the announcement 2020/58;

  • Price margin is 10% for equities in BIST Stars, BIST Main, exchange traded funds, real estate certificates, real estate investment funds and venture capital investment funds.

Please click for the Announcement No: 2020/58.

Price Ticks

  • The price ticks and price ranges defined in the following Table 1 and Table 2 shall be used for the stocks, preemptive rights and ETFs traded on the EM,
  • 1 kurush price tick application shall continue to be applied on all price ranges for warrants, certificates and wholesale trading.
  • The display of prices on the new system will be up to 10 bps sensitivity.

Table-1: Price ticks for stocks and preemptive rights

Price Range (TRY) Price Tick (TRY)
0,01 - 19,99 0,01
20,00 - 49,98 0,02
50,00 - 99,95 0,05
100,00 and over 0,10

Table-2: Price ticks for ETFs

Price Range (TRY) Price Tick (TRY)
0,01 - 49,99 0,01
50,00 - 99,98 0,02
100,00 - 249,95 0,05
250,00 and over 0,10
Maximum TL Limit on Orders
There is a maximum order value rule for the instruments traded in Borsa İstanbul Equity Market. This rule, including limit orders, market orders, market to limit orders, imbalance orders, iceberg orders and market maker quotes, states that the size of an order or quotation sent at once to any instrument cannot exceed the specified limits.

Maximum order value limits for orders and market maker quotes are differentiated according to the turnover values and market capitalizations of the equities.

Taking traded values and market capitalization figures into consideration, higher order value limits for liquid stocks and lower order value limits for less liquid ones is introduced. Thus stocks are assigned to six groups that have different maximum order values.

  • Group No: 1. Maximum order value: 4 million TRL.
  • Group No: 2. Maximum order value: 3 million TRL.
  • Group No: 3. Maximum order value: 2 million TRL.
  • Group No: 4. Maximum order value: 1 million TRL.
  • Group No: 5. Maximum order value 0.5: million TRL.
  • Group No: 6. Maximum order value: 0.1 million TRL.

Maximum order values are updated in January and July (every six months) according to the previous 6 month’s figures.

In the case of rights issues, merger, takeover and stock split, Equity Market Department can update the maximum order value of the related stock, considering market requirements, before the six-month period.

The maximum order value of a stock that will start to be traded in the equity market is determined by considering the market value criterion and the maximum order value of companies of similar size in the same sector. Equity Market Department has the right to set this limit.

Maximum order value for warrants and certificates is 1 million TRL.

Maximum order value for ETF’s (.F), Participation Certificates Of Venture Capital Investment Funds (.F1), Real Estate Investment Funds (.F2) and Real Estate Certificates (.G) are 3 million TRL.

Maximum order value for buy-in and official auction is 1 million TRL.

Maximum order value for primary market and IPO series (.BE and .HE series) is 100.000 TRL. Equity Market Department has the right to change this limit according to the amount to be traded.

Maximum order value for rights (.R series) is the same with the related stock (.E series)

There has not been a change in the limits of mid-point orders, weighted average price (AOF) orders and trade reports due to this rule.

Related Pages

The information in the file below are the values ​​defined in the system at the beginning of the relevant period. During the period, the newly added order, change in the maximum order value, etc. For the reasons, updates made in the system are not reflected in these files.

2017_2
2018_1
2018_2
2019_1
2019_2
2020_1

You can reach the current values ​​from the margin information file in the link .

Off-Exchange Odd Lot Trades

Off-Exchange Odd lot Trades has been abolished by BISTECH transformation on 30/11/2015. On the other hand, Borsa İstanbul Board of Directors has set the procedure for the odd-lots to be traded on its meeting dated January 2010. This procedure is stated in the Equity Market Procedure under “Liquidation of the amounts under one lot (odd-lots) in the member/client accounts”

With this procedure, in essence;

  • Members may buy the odd-lots that are in the client accounts should they demand it.
  • Members are not obliged to do this transactions. They may avoid on a client or instrument basis.
Margin Trading and Short Selling

Short selling means selling capital markets instruments that the seller does not own, or placing an order for such sales. Any sales that is completed by using borrowed capital markets instruments to fulfill the settlement obligation relating to the sales is also deemed a short sales.

In order to conduct short selling, the order should be entered as a short selling order at the beginning. Short selling transactions are announced on the Daily Bulleting on equity basis, stating the amount and contract quantity at each price level.

The “List of Securities Subject to Margin Trading and Short Selling Transactions” has been determined to cover all shares and ETFs traded in the BIST Equity Markets, excluding SubMarket, PMTP (PÖİP) and WL (YİP). Accordingly, shares traded on the BIST Stars and BIST Main Market, as well as ETFs, can be subject to both margin trading and short selling.

Warrants, certificates, ownership backed lease certificates, real estate investment funds and venture capital investment funds can not be subject to margin trading and short selling transactions. Real estate certificates can be subject to margin trading but not short selling.

Except for the opening session, a short sell order can be entered in all sections of the session (including circuit breaker order collection sections) where orders can be entered.

Regarding the Board Decision dated 28/02/2020, stated in the Weekly Bulletin Numbered 2020/14 of the Capital Markets Board, short selling transactions were banned on 28.02.2020 in Equity Market. Due to the Board decision dated 02/03/2020, announced in the Weekly Bulletin numbered 2020/15, it is decided that the aforementioned measures will continue from 02/03/2020 until a further notice.

2020/14 numbered CMB bulletin.

2020/15 numbered CMB bulletin.

Related Downloads

Temporary List pertaining to the securities excluded from Margin Trading and Short Sales in accordance with the CMB Regulation about the Short-Selling and Margin Trading of Capital Market Instruments (Serial:V Communique No:65) and Equity Market Implementing Procedures and Principles

Gross Settlement

In the case of gross settlement, İstanbul Takas ve Saklama Bankası (Takasbank) does not net-off brokerage houses’ trades in terms of the quantity and total TL amount of equities in the two trading sessions. Within the same framework, a brokerage house that engages in both a buy and a sell transaction on the same equity during a single day shall be credited/debited to Takasbank on the basis of the net balance by netting-off the sell amount from the buy amount. On the other hand, buy and sell amounts are, in general, netted-off and in the event that a brokerage house’s buy amount is greater than its sell amount, it is credited in cash to Takasbank, and otherwise, debited in cash to Takasbank. Thanks to the netting-off facility, an investor that engages in a trade on an equity during the day shall be subject to a delivery liability equal to the net difference between the buy and sell trades realized during the day.

Equities for which netting-off facility is removed by Takasbank will be subject to gross settlement, and the receivables on brokerage house and investor basis are distributed by Takasbank following the end of the settlement period. Investors that intend to buy equities subject to gross settlement must keep the corresponding amount of cash, and those that intend to sell equities subject to gross settlement must keep the corresponding quantity of equities in their accounts.

  • According to the new market structure, as of 01/10/2020, transactions of SubMarket, Watch List and on Pre-market Trading Platform are settled on the basis of gross settlement rules.
  • In BIST Stars and Main Market, gross settlement is applied temporarily on a share basis, depending on the measures implemented by Borsa İstanbul and Capital Markets Board.

Click for the Temporary Gross Settlement List

Click for the Announcment No: 2020/58

Volatility Based Measures System (VBTS)

In accordance with Capital Market Board's decisions, a measures system (i.e. Volatility Based Measures System) has been commissioned in order to ensure that the shares in Borsa İstanbul Equity Market are traded in a fair and reliable manner and to protect investors from the risks arising from extreme volatility. Within this framework, if predetermined conditions are met, the measures given below are taken in the given order.

1) “Prohibition of Short Selling and Margin Trading” for a period of 15 days.

2) “Gross Settlement” for a period of 15 days.

3) “Call Auction Trading” for a period of 15 days.

If a new measure is taken while a measure is already in effect, both measures will be applied for the duration of the new measure. The information related to the share to which the measure will be applied together with start date and duration of the measure will be announced to the public by the Exchange through Public Disclosure Platform in the same day after the market is closed.

Market Making and Liquidity Providing

MARKET MAKING

Market making is such an activity, that liquidity is targeted in a capital market instrument by giving double-sided continuous quotation (price and quantity), using an account or accounts defined for this purpose, at the appointed capital markets instruments by a member.

Securities Traded with “Continuous Trading with Market Maker Method” and “Single Price Method” on the Equity Market

Information about the trading method of equities is declared in the Exchange Daily Bulletin.

As of 01/10/2020, with the new market structure, market making activity in Equity Market products will be implemented as follows:

Main Market and SubMarket: Market making can be optionally applied to the equities on the BIST Main Group, SubMarket.

ETFs: It is essential to carry out market-making activities in the exchange traded funds and continuous trading method is applied in case of market making activity. When there is no market maker in ETFs, single price method shall be applied to the relevant investment instrument.

Warrants and Certificates: Investment Company warrants and certificates can only be traded with “Continuous Trading with Market Making Method”. In case there is no market maker in the relevant investment instruments, the transactions of these instruments will be suspended until a market maker is appointed.

SPFM: Market making can be optionally applied to real estate certificates, participation certificates of venture capital investment funds and real estate investment funds on Structured Products and Funds Market.

WL and PMTP: Market making activity cannot be carried out on the equities in Watch List and on Pre-market Trading Platform.

What is Continuous Trading with Market Making Method?

The trading method for the capital market instruments which are traded with continuous trading, to provide liquidity by giving double-sided continuous quotation (price and quantity), using an account or accounts defined for this purpose by a member appointed as a market maker.

Market Maker Member and its Functions

Market maker member is a member that fulfills the basic market making criteria and whose application for market making has been accepted by Borsa İstanbul Board. Market maker members start operating after signing “Market Making Letter of Undertaking for Borsa İstanbul Equity Market”.

Market makers are expected to prevent any extreme price movements which may occur as a result of short term supply-demand imbalances in securities that have insufficient depth for continuous trading and whose free floating market capitalization is low; to provide liquidity to the market on a continuous basis, and thereby to contribute to the efficient improvement of the continuous trading environment.

Quotation

A quotation refers to a notification of price and quantity in the form of a bid or ask order sent by a market maker member. A member defined as a market maker in the system is able to enter quotation in all instruments. Multiple market makers and multiple market maker quotes (belonging to various market maker entities) are possible for a single instrument.

Market maker quotes are treated as normal orders. So orders may be entered and the trades may be carried out before the market maker enters the quotation. In the session flow, there are not any session states allowing only quotation entry or amendment. Market maker quotes can also be entered in call auctions such as the opening and closing sessions.

Market makers are obliged to enter “PYM” for client accounts and “PYP” for house accounts in the “AFK” areas for quotation entries. Reduction of fee for the market maker is calculated over the daily evaluations, and realized monthly. Even if the volume is decreased with an update of the quotation, priority is lost because each quotation amendment is deemed as cancelation and entering a new order.

Benefits of Continuous Trading with Market Making Method

The main operating system for Borsa İstanbul Equity Market is continuous trading. This trading method is supported with single price trading method in the opening and closing sessions. Continuous trading is used in developed markets as the most efficient method, while it is applied in a hybrid system supported by a market maker in the case of securities weak in liquidity and whose free floating market capitalization is low. Continuous trading with market maker method is a hybrid structure where the orders sent for the market maker’s market maker quotes as well as those in the publicly disclosed order file are matched according to price and time priority, and traded.

This method aims at ensuring the price stability Thereby, securities traded with a market maker are aimed to be protected from short term artificial price movements that intimidate investors. The market maker’s market maker quotes, which will stay in the system during the session, offer an important assurance for the liquidity of the security.

As a result, continuous trading with market maker method offers a secure environment against extreme volatility.

Table: Criteria to Be Eligible for Market Making

1- Intermediary institution should be either “narrowly authorized intermediary institution” (with the permission of related services and activities from Capital Markets Board for execution of orders, best effort and limited custody) or “broadly authorized intermediary institution”.

2- Number of consistent defaults having a value of 2 million TL and above should not have exceeded 5, in the past year backwards from the month when the evaluation is made (While determining the number of default transactions exceeding the limits, clearing defaults are taken into consideration which are arising from the failure to fulfill the obligations on time, performed in the Equity Market).

The number of member based defaults to be considered, is decided within the framework of the following points:

  • Defaults which are settled on the same day are not considered.
  • If a member has more than 1 default with the amount of 2 million TL or more, in different instruments on the same day, this is considered to be 1 default case.
  • If a member has defaults in different instruments less than 2 million TL, each on different instrument during the same day, these defaults will not be considered as default regardless of the total sum of the default values.
  • BIST Main
  • SubMarket
  • SPFM
  • EMQ

The members, that do not meet the main criteria above but that are founder/issuer of a capital market instrument they applied for or the capital market instrument they applied for was issued by a sister company in the same conglomerate with itself that made the initial public offering of a capital instrument and have an inventory of the capital market instrument that can be used for market making activity are accepted to be eligible to act as a market maker for only those related capital market instruments by the consent of the board of directors of BIST. In the evaluation of such exceptional cases, the preference of the company whose shares are to be assigned a market maker is taken into consideration, if declared.

The members that do not meet the main criteria cannot apply to be assigned as a market maker for a capital market instrument if they do not fit in those exception rules mentioned above.

The eligibility criteria to be a market maker for each member are re-evaluated in every six months and the new status is announced. The license of market making of a member that no longer meets the criteria is revoked and its market making activity in the related capital market instruments is prevented. Nevertheless, the market making activity of the members which act in the context of the exception rules continues in the related instruments even though they do not meet or fail in time to meet the criteria.

The member gaining the eligibility for market making activity within or after the evaluation period can be reauthorized to act as a market maker. The member under this circumstance needs to make a new application to be reassigned as a market maker for the capital market instrument it would act on.

Optional Market Making

For the voluntary market-making activities, when the market-making activity terminates, the trading method shall not be changed for the relevant instrument. For the Main Market, ownership-based lease certificates, real estate certificates, real estate investment funds, venture capital investment funds, which are traded with continuous trading method in SPFM, will be traded with “Continuous Trading with Market Making Method, in case there are market makers on these instruments.

Related Pages

List of Borsa İstanbul Equity Market Members Eligible for Market Making
List of Securities Traded via Continous Auction with Market Making

LIQUIDITY PROVIDING

In addition to continuous trading with market making, the application called “Liquidity providing in the Equity Market”, developed with a view to contribute to the liquidity of equities with low traded value especially, was introduced on November 1, 2012.

Liquidity providing refers to an optional activity that aims to increase the liquidity, and therefore the tradability of equities, and not at ensuring price stability.

Liquidity providing can be optionally applied to the equities on the BIST Stars, BIST Main and SubMarket, those not included in BIST 30 Index and ownership backed lease certificates, real estate certificates, participation certificates of venture capital investment funds and real estate investment funds on Structured Products and Funds Market (SPFM).

Liquidity providing, market making and single price method cannot be applied together on the same instrument. As the single price method is applied to the all equities on the Watch List (WL) and Pre-Market Trading Platform (PMTP), liquidity providing cannot be performed on this markets.

Related Files

List of shares with Liquidity Provider
List of Equity Market Members Eligible for Liquidity Providing

Circuit Breaker

Circuit Breaker System is introduced to our Market by the abolishment of Automatic Circuit Breaker System at 30/11/2015.

In case price change calculated by a certain reference value reaches or exceeds threshold values (rates) determined by the Exchange while transactions in a stock are carried out with continuous trading method in the session, transactions of the related stock will be temporarily halted and carried on to the order collection stage of a call auction.

At this stage price is determined in a call auction using single price method in the related stock. Then the related stock is again taken to continuous trading and transactions are continued after processes single price method are completed.

  • Circuit breaker works only in the continuous trading method.
  • Circuit breaker reference value as to which rates of price change which will trigger the circuit breaker to be applied, is the price determined with the latest call auction (the price set in the opening session and single opening sessions) or base price of the equity. The latest updated price will be used for circuit breaker reference price.
  • Circuit Breaker price limits and order collection phase lengths are diversified up to market where the security traded;
Trading Principals
BIST Stars BIST Main BIST SubMarket
Price Difference from Reference Price for Circuit Breaker to trigger 10% % 7,5 % 5
Circuit Breaker Auction - Order Collection Phase Duration 5 minutes 15 minutes 15 minutes
Matching Phase Duration 2 minutes 2 minutes 2 minutes
  • Regular transactions continue until these price limits are exercised, however, circuit breaker works and the order which will carry out the transaction exceeding these price limits is cancelled to prevent a transaction outside the price limits. The remaining part is cancelled if mentioned order has carried out transactions with previous price levels.
  • Order collection phase of a call auction in the related equity is proceeded after the circuit breaker is triggered. At this phase theoretical price and traded quantity is shown as in the opening/closing and other single price call auctions.
  • Matching process comes after order collection period.
  • Regular transactions with continuous trading continue after the order collection and matching.
  • In BIST stars; if circuit breaker is triggered within 10 minutes to the beginning of closing session (17:50 – 18:00), order collection period is prolonged from 5 minutes to 10 minutes and order collection without matching continues in the following phase. Matching in the related stock occurs following the order collection phase (closing session).
  • In BIST MAIN and BIST SubMarket; if circuit breaker is triggered within 20 minutes to the beginning of closing session (17:40 – 18:00), order collection period is prolonged from 15 minutes to 20 minutes and order collection without matching continues in the following phase. Matching in the related stock occurs following the order collection phase (closing session).

In case circuit breaker is triggered at a stock, trading in the related preemptive rights, warrants, buyin order books continue without any interruption. For example, when circuit breaker is triggered in GARAN.E and this stock is taken to call auction with single price method, trading continues without any interruption in GARAN.R and GADAA.V order books.

Upon the decision of Borsa İstanbul Administration, by 10/08/2020 (together with the newly establised Market-Wide Circuit Breaker System) on instrument basis, call auction phase has reduced from 30 minutes to 15 minutes in the Equity Market. Uncrossing period has not been changed (2 minutes).

Click here for the 2020/20 numbered announcement.

Click here for the 2020/21 numbered announcement.

Marke -Wide Circuit Breaker System

Upon the decision of Borsa İstanbul Administration, a Market-Wide Circuit Breaker System (MWCB System) will be established and will come into operation by 10/08/2020 in addition to the circuit breaker system that is currently applied on instrument base in the Equity Market.

Within this context, MWCB will be triggered during the day in case of a decline in BIST 100 Index that is 5% or above as the first threshold and 7% or above as the second threshold compared to the previous closing value. When MWCB is activated, trading will halt temporarily in Equity Market, Equity and Equity Index contracts in Derivatives Market and in Debt Securities Equity Repo Market (MWCB will not be activated by upward movements of the index). The index, the change rate and the direction of the change to be taken as reference within the scope of MWCB System can be altered by the Exchange due to the changing conditions with an announcement in advance.

In case of a MWCB activation:

  • Trading in series with suffix “.E”, “.F1”, ”.F2” and “.G” (equities, real estate investment funds, venture capital investment funds, real estate certificates) will be halted for 20 minutes. Instruments which are in an uncrossing session at the moment of the trigger will be halted after the orders are matched and trades are made. In the halt period, order cancellation and amendment will not be allowed.

  • After 20 minutes of halt period:

    a) Instruments that trade with continuous trading method will resume trading with a call auction for 5 minutes, followed by an uncrossing phase for another 5 minutes in which prices are formed and disseminated.

    b) Equites that trade with single price call auction method will resume trading with a call auction that will continue for a minimum of 10 minutes. Afterwards, the trading session will continue in its regular course.

  • Trading in series with suffix “.V”, “.C”, “.F” and “.R” (warrants, certificates, ETFs and pre-emptive right coupons) will be halted for 30 minutes. In this period, order cancellation, volume reduction and price worsening will be allowed while market maker quotes cannot be changed. Afterwards, the trading session will continue in its regular course with continuous trading method provided that there is enough time left until the end of the trading session.

If MWCB is triggered in Equity Market 60 to 30 minutes before the end of the continuous trading session (between 17:00-17:30), the trading in all three markets will halt and will restart in Equity Market and Debt Securities Equity Repo Market with the closing session (currently at 18:00)

If the MWCB is triggered within 30 minutes before the end of the continuous trading session in Equity Market (currently after 17:30), the trading will be terminated for that day.

If the thresholds determined for the MWCB (5% and 7%) are exceeded more than once in a day, MWCB will not be triggered for the same threshold for the second time. With the introduction of the MWCB System, the call auction period for the current circuit breaker system that is applied on instrument basis will be reduced to 15 minutes, the uncrossing period will stay as 2 minutes.

Click here for the announcement numbered 2020/50 About the Market-Wide Circuit Breaker System.

Click here for the announcement numbered 2020/53 About the Configurations on MWCB System and New version of Trading Workstation.

Closing Session

On March 2, 2012, Borsa İstanbul introduced "closing session". Closing session is a special trading session operating with a single price, where the single price is calculated by transferring the unmatched orders (excluding quotation orders) entered in the main trading session, and accepting new orders in the trading system without matching in a pre-determined period of time, and determining the price level at which the highest trading volume (i.e., single price) may be achieved, and then all trades are realized at this price level.

Warrants, rights coupons, and default transactions are not traded in the closing session.

Phases of Closing Session:

  • Order collection phase – (4 minutes, 18:01 – 18:05)
  • Price determination & closing session transactions phase – (2 minutes, 18:05–18:07)
  • Trades at closing price/ single price phase – (2 minutes, 18:08 – 18:10)

Order Collection Phase (18:01 – 18:05) : This is the phase when new bid and ask orders, in addition to the pending orders for the securities traded with continuous auction and continuous auction via market making methods, are entered into the trading system in order to determine the price for the closing session. During this phase, orders are not matched.

During this 4-minute period, orders are collected for the closing session, while orders that have been already sent may be modified, split, or cancelled in accordance with the current regulations.

  • Limit order, market order, market to the limit, FaK orders, Imbalance orders can be entered.
  • Quotation orders can be entered, amended, canceled.
  • Quantity and price of orders can be amended, the duration periods of the orders can be changed.
  • Orders can be canceled.
  • Trade reports cannot be entered.
  • Short sell orders can be entered.
  • The equilibrium (theoretical matching) price and equilibrium quantity and quantity of orders not executed at the equilibrium price will be broadcasted

Closing Price Determination and Closing Session Transactions Phase (18:05 – 18:07): At this phase, the closing price is determined for the equities for which orders have been collected during the closing session, and following that, trades at closing price are realized. Orders transferred from the continuous auction phase, the limit price orders sent to the trading system during the order collection phase of the closing session, and MoCs match at the determined closing session price. The determined closing session price is the closing price for the relevant equity.

No new orders are allowed at this phase, while the pending orders may not be modified, split, or cancelled. Realized trades and the closing session prices may be monitored on both brokers’ and data vendors’ screens.

Trades at Closing Price Phase (18:08 – 18:10): This is the final phase where new bid and ask orders priced only with the closing price determined during the closing session can be entered to the trading system and can be matched with the pending orders at closing price that have not been executed during the closing session and transferred to this phase, or with those orders entered during this phase, in accordance with the priority rules.

During this 2-minute phase, orders may be entered only for the securities that have been traded in the closing session. New bid and ask orders to be entered in the trading system must be at the closing price and if matched with a pending order of the same price, are to be traded in accordance with the priority rules. Those that are not traded keeps pending in the trading system in accordance with the priority rules.

The orders entered at this phase may not be split or modified in terms of price, but their quantities may be increased / decreased or they may be cancelled

  • Trades can made on the last trade price.
  • Orders with limit prices are allowed (including FaK and Short Sell orders).
  • Increase and decrease of quantities of the orders with the last trade price can be made.
  • Quantity of orders waiting at a different price other than the last price can not be increased, but decreased.
  • The prices can only be improved to the last trade price, no price amendment can be made apart from that.
  • The information of order and price depth is continued to be broadcasted.
  • Trade reporting can be made.
  • The orders will be matched according to continuous trading method at the last trade price.
  • Quotation orders can be entered, amended, canceled.
  • The orders can be canceled.

Price Limits at the Closing Session

At the closing session, order price of a capital market instrument (hereafter instrument) cannot differ by more than ± 3% of last traded price (last transaction price before the closing session) of the instrument . In the closing session, upper and lower price limits of the instrument are determined by applying 3% margins to the last transaction price. If the calculated upside and downside price limits do not fit to the price tick of the instrument, calculated limits are adjusted according to the price tick (calculated upper price limit is rounded to the nearest downside price tick and calculated lower price limit is rounded to the nearest upside price tick). In the closing session of shares traded with free margin (which do not have price limits), a margin of ± 3% margin is applied to the last traded price to set the limits for the closing auction.

Although a margin of ± 3% is applied for the closing session, order entry at a price outside the daily price limits of ± 20% is not allowed in the closing session. Daily price limits for an instrument is determined by applying ± 20% on the base price. Assume that the base price of an instrument for a specific day is 3.00 TL, thus lower and upper price limits of the instrument is 2.40 TL – 3.60 TL respectively. Additionally, assume that the last traded price of the instrument before the closing session is 3.58. In that case, considering the 3% margin rule, it is possible for an order to be entered at a minimum price of 3.48 TL and a maximum price of 3.60 TL (Note that daily lower or upper price limit cannot be exceeded in any case). In the instruments where a margin other than ±20% is applied on the base price, daily price limits valid for those instruments are taken into consideration.

Outstanding orders entered in the main trading session are transferred to the closing session. Among these orders, if there are buy orders at a price higher than the upper limit of the closing session and sell orders at a price lower than the lower limit of the closing session then ± 3% margin is not applied for calculating the closing session limits. In that case, only daily price band (± 20%) is valid in the closing session. For instance; if last traded price of an instrument in the main session is 4.00 TL. Lower and upper price limits for this instrument in the closing session is 3.88 TL and 4.12 TL, respectively. Among those orders transferred to the closing session, if there are buy orders at a price higher than 4.12 TL or sell orders at a price lower than 3.88 TL, then no margins are applied for the closing session only 20% daily price limit will be valid.