Products
Equities

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.

Related Pages

Equity Market
Equity Data
Frequently Asked Questions
Investing in Equities
Equityholder Rights
Equity Types
Exchange Traded Funds

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

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.

Investing in Warrants

Warrants are included in the class of structured products, which carry the qualities of a securitized option. Warrants are written on a financial product or indicator. Such financial products, are called “underlying instruments”.

If the underlying instrument of a warrant is a single equity or a basket of equities, we use the term “underlying asset”, whereas in the case of warrants written on an index, the term “underlying indicator” is used.

The “underlying asset”, may be a single equity or a basket of equities. Such equities must be traded on İMKB, and included in İMKB 30 Index.

Example: A call warrant issued by Z bank, entitling the holder to buy the shares of ABC Incorp. at TL 6.00 on 20.12.2014.

Example: A put warrant issued by Z bank, entitling the holder to sell the shares of ABC Incorp. at TL 5.00 on 20.12.2014.

Warrants written on an index, on the other hand, provide cash flow to the holder, on the basis of the underlying index value on a particular date. Such indices are equity indices calculated by İMKB.

Example: A call warrant issued by Z bank, which entitles the holder to buy İMKB-100 Index at 80,500 points on 20.12.2014.

Example: A put warrant issued by Z bank, which entitles the holder to sell İMKB-30 Index at 70,500 points on 20.12.2014.

In contrast to equities, warrants do not offer the following rights:

-Dividend

-Pre-emptive right

-Share in liquidation

-Taking part in the company management

-Voting and right to information.

The buyer of a warrant does not buy the equity itself, but the right to buy or sell such security.

Risks of Investing In Warrants:

- Warrants have an expiry day and therefore a limited life.

- Due to leverage, buying warrants may be to one’s advantage or disadvantage, and therefore it should be taken into consideration that leverage may lead to high return as well as loss.

- As a result of the price fluctuations in the market, the invested money may be entirely lost. However, with warrants, the risk is limited to the amount paid for the warrant, the commission and other fees.

- It should be considered that the technical and fundamental analyses for warrant trade are subjective and the anticipations of such analyses may not be realized.

The issuer’s risk management policy against the risks associated with issuing warrants must be included in the prospectus. In accordance with the Communiqué, the prospectus is announced in the web sites of the issuer and the market maker. Investors should carefully examine the issuer’s risk management policy before making investment decisions.

Pricing and Valuation

Price of the Underlying Asset

There is a positive correlation between the price of the underlying instrument and a call warrant, while this correlation is negative in the case of put warrants. As the price of the underlying asset increases, the price of call warrants increases and the price of put warrants decreases.

Exercise Price

There is a negative correlation between the exercise price of a warrant and call warrants, while this correlation is positive in the case of put warrants. As the exercise price increases, the price of call warrants decreases and that of put warrants increases.

Days to Maturity

There is a positive correlation between the days to maturity and both call and put warrants. As the days to maturity increase, the price of both call and put warrants increases.

Volatility

There is a positive correlation between the volatility of the underlying asset and both call and put warrants. As the volatility of the underlying asset increases, the price of both call and put warrants increases.

Market Interest Rate

There is a positive correlation between the interest rate and call warrants, while this correlation is negative in the case of put warrants. As the interest rate increases, the price of call warrants increases and that of put warrants decreases.

Dividend

There is a negative correlation between the dividend distributed by the company on whose equities the warrant is written and the price of call warrants, while this correlation is positive in the case of put warrants. As dividends increase, the price of call warrants decreases and that of put warrants increases.

Factors Influencing the Warrant Price

Warrant Price (CALL) Warrant Price(PUT)
Price of underlying asset + -
Exercise price - +
Days to maturity + +
Volatility + +
Market interest rate + -
Dividend - +
Trading Principles

Trading of warrants on Borsa İstanbul is regulated by a Circular issued by İMKB in accordance with the CMB arrangements.

Trading Method

Warrants are traded on the Warrant Market established within Borsa İstanbul Collective Products Market by “market making in multiple price - continuous auction system”. This system is operated by entry of buy/sell quotations by the market maker member in charge of the warrant and entry of buy/sell orders by members (including the market maker member) for such warrant. Each warrant has to be assigned a market maker, otherwise they can not be traded.

Market Maker

Borsa İstanbul member intermediary institution, determined by the issuer upon the approval of the CMB, and responsible for giving quotations for the warrants under its responsibility, in order to ensure the fair, orderly, and efficient functioning of the market, and to contribute to the formation of a liquid and continuous market for such warrants.

Quotation

A two-sided order that the market maker enters Borsa İstanbul Equity Market Automated Trading System (System), which includes information about the price at which and the quantity of the warrant that he is ready to buy and sell.

Main Trading Rules

- Orders are entered into the System according to price and time priority and are matched with the buy/sell orders and/or the quotations within the appropriate quotation interval (including quotation prices).

- The market maker member enters quotations for the relevant warrant. No order entry is accepted for warrants before the market maker member enters a quotation.

- Base price method is not applicable in warrant trading. Therefore, there is no upper or lower limit in price formation (margin is free).

- All trades in the market are realized within the interval of buy/sell quotations given by the market maker (including quotation prices) (the quotations given by the market maker are temporary price limits, in a way).Orders that fall out of the interval are also accepted to the System, but may be matched only when they are within the quotation interval.

- No orders or quotations are entered for warrants during the opening session.

-Orders entered for warrants may be cancelled during the session.

Trading Hours

Warrants are traded during continuous trading periods (10:00 - 18:00) of the session .

Related Pages

Frequently Asked Questions

Investment Firm Certificates

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.

Certificate Types

Turbo Certificate

Turbo Certificate is a capital market instrument which is dependent on price of underlying asset or underlying benchmark, and provides its holder with the right to claim repayment in an amount equal to the difference between final value of underlying asset and its exercise (strike) price at the date of maturity as specified in the related Circular. If value of underlying asset/benchmark reaches or exceeds barrier during maturity of Turbo Certificate, then, the related Turbo Certificate is terminated by issuer by payment of a Surplus Value equal or close to zero.

Discount Certificate

It refers to a capital market instrument allowing its investor to invest in a certain underlying asset or benchmark with a certain discount over its current market value. In exchange for this discount, the investor waives the part of the upside performance of the underlying asset or indicator that exceeds a predefined maximum price/value.

Premium Paying (Bonus) Certificate

Premium certificate is a type of capital market instrument which is issued in order to encourage investors to buy certificate rather than underlying asset, and guarantees payment of a certain price at the end of maturity unless the price of underlying asset falls below a predetermined price.

Index Certificate

It refers to a structured capital market instrument which is priced in close association with price of an underlying asset or value of an underlying benchmark and provides its investors the right to claim a repayment equal to an amount calculated by multiplication of underlying benchmark with a certain rate of conversion (such as 1/100) and/or exchange rate.

The types of certificates are defined generally in the preceding paragraphs, and in practice, the issued certificates may have definitions different from the definitions given above, or may have different features than these definitions. That is why it is important for investors to take care of features and risks of the issued certificates stated in the Circular published by the related issuer before making investment in these investors.

Characteristics of Certificates

Underlying Asset

This term stands for shares included in BIST 30 index and/or a basket composed of more than one equity included in BIST 30 index.

Underlying Benchmark

This term stands for certain equity indices created by the Exchange.

Other References

If deemed fit by the Board, other assets and benchmarks such as convertible currencies, precious metals, commodities and indices generally accepted to be valid in international arena, other than the underlying assets and benchmarks specified herein above, may also be used as underlying references.

Surplus Value

It refers to an amount calculated by issuer and to be paid to investors if the certificates are knocked out or if it is specified so in the Circular. This amount may not be paid in every issuance.

Rate of Conversion

This term refers to the rate indicating how many underlying assets one certificate corresponds to or is exchanged for.

Knock-out Case of Certificates

In the case of certificates with knock-out feature, if underlying asset or benchmark reaches or exceeds the knock-out level announced by issuer in advance, then, said capital market instrument becomes invalid, and is automatically delisted from the Exchange without any further or additional act.

Barrier

It refers to price or value level determined by issuer for underlying asset or underlying benchmark due to knock-out feature of some types of certificates. The certificate becomes invalid if and when price of underlying asset or value of benchmark reaches or exceeds this level during maturity of certificate.

Market Making

Just like the warrants, certificates are also traded with a market maker. Market making principles relating to certificate are like those applied for warrants, unless stated otherwise. It is mandatory for every investment firm certificate to have at least one market maker.

All bid and ask orders submitted for the relevant capital market instrument into the System may fully or partially be traded by being matched among themselves and/or with market maker quotes or orders in accordance with the rules of priority.

Principles of Buying and Selling Certificates

Market: Certificates are traded in Structured Products and Funds Market (SPFM) or Venture Capital Market (VCM).

Extension Code: “C”. “TC” and “MC” extensions are used respectively for trading, defaults and auctions. A separate series is not opened for primary market.

Trading Hours: Certificates are traded within the same hours with warrants. Certificates are not traded in the Opening and Closing Phases of the Session.

Price Limits: Due to lack of base price, lower and upper price limits are not applied in order entries. Trades may be executed between/outside quotations given by market maker or at these quotation prices, just like in warrants.

Price Tick/Increment: It is 1 Kuruş at every price step, just like in warrants.

Lot: Lot size is 1 unit.

Maximum Order Value: The maximum order value is 1 million TL for certificates (.C).

Exchange Trading Fee: Exchange trading fee and other fees valid for warrants are charged for transactions in certificates. Rules valid in warrants are applied in order cancellation or worsening.

Settlement: Settlement for certificate transactions is made in the second business day following trading day (T+2).

Related Pages

Frequently Asked Questions

Related Downloads

Listing and Trading Principles of Certificates (Circular No: 400)
Participation Certificates Of Venture Capital Investment Funds And Real Estate Investment Funds

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.

Real Estate Certificates

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)

Real Estate Certificates Brochure

Commodity Certificates
  • 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).