Market Maker Members

Market Maker Members
Equity Market

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.

With the new market structure, as of 04/11/2019, market making can be optionally applied to the equities on the BIST Main Group I, Group II and real estate certificates, participation certificates of venture capital investment funds and real estate investment funds on Structured Products and Funds Market (SPFM).

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.

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.

Market making activity cannot be carried out on the equities in Emerging Companies Market, Watch List and 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.


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 quotations (belonging to various market maker entities) are possible for a single instrument.

Quotations 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. Quotations 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 quotations 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 quotations, 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
  • 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 subsegment I and II equities, 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 Files

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

Debt Securities Market

Under the “Market Making" system introduced by the Undersecretariat of Treasury, since September 2, 2002 for the purpose of enhancing effectiveness in the issue of government debt securities and secondary market transactions, market makers place purchase and sale orders that meet certain conditions with regards to quantity and spread for benchmark securities determined by the Undersecretariat of Treasury in accordance with the current rules of  Borsa İstanbul Debt Securities Market. If orders placed within the determined quantity and spread range are the best orders, they are reflected to the market screen. Additionally, market maker orders are announced with the market maker code on pages designed by data distribution firms, aside from the current broadcast pages of the market.

Market makers transmit a buy and a sell order for each benchmark security as the market maker. Market makers place orders using Borsa İstanbul Debt Securities Market trading terminals. Market maker orders as well as other orders are transmitted to the Debt Securities Market Outright Purchases and Sales Market, and are processed according to price and time priority subject to the current operating rules of that market.

Market making banks are announced to public by Republic of Türkiye Ministry of Treasury and Finance.

Related Files

Primary Dealers (Government Debt Securities)

Derivatives Market (VIOP)

Market maker members in Derivatives Market can be found here

For further information regarding Market Making on VİOP please refer to the Derivatives Market Procedure

Precious Metals and Diamond Markets
Currently, the market making system is not applied in the Precious Metals and Diamonds Market.