Borsa İstanbul A.Ş.

What is Equity?

Equities (shares) are securities, characterized as negotiable instruments, which are issued by joint-stock companies and represent the capital of the joint-share company. Holding equities (shares) of a joint-stock company means to be a shareholder of the company.

How can I trade in the Equity Market?

Investors that wish to invest in the Equity Market can submit orders through Equity Market member investment institutions holding the CMB (Capital Markets Board) license. Member list is available in the link below:

https://www.borsaistanbul.com/en/sayfa/2690/general-informations

What are the sub-markets in Equity Market?

Detailed information of sub-markets within the Equity Market is available at the link below:

https://borsaistanbul.com/en/sayfa/2886/markets

Which capital market instruments can be traded in the Equity Market?

Detailed information on the capital market instruments traded/can be traded in Equity Market is available at the link below:

https://www.borsaistanbul.com/en/sayfa/2890/products

What do extensions used with tickers mean in the Equity Market?

Detailed information for extensions used in the Equity Market is shown at the link below:

https://www.borsaistanbul.com/files/extensions-in-equity-market.pdf

What is warrant?

Covered Warrant is a type of capital market instrument which grants to its holder a right to purchase or sell the underlying asset or indicator at a predetermined price until or at a particular date, where this right is used through dematerialized delivery or cash settlement.

What is the trading method in warrants?

Warrant transactions are executed with a market maker and by continuous trading method The bid and ask orders are accepted to the System according to price and time priority rules, and are traded by being matched with bid or ask orders or with market maker quotes of matching price standing at the opposite side.

What is the price tick applied in warrants?

For order and quote entries for warrants, price tick is applied as 0.01 TL at every price level. This price tick of 0.01 TL is applied also in order entries for buy-in, official auction and wholesale transactions of warrants.

What are the limitations on order entries in warrants?

· There is a new session period prior to the continuous trading for warrants and certificates where only market maker quotes will be accepted. Orders cannot be submitted during opening and closing auction phases of trading session.

· Orders can be submitted on warrants even when a market maker quote is not present.

· Market and market-to-limit order types cannot be used for warrants.

· The maximum order / quote value is 250,000 TL for warrants.

· The upper price limit for warrant order/quotes is 50 TL. Orders with prices above 50 TL cannot be placed for warrants.

· Trade reports can be submitted for warrants.

· Short selling cannot be executed for warrants.

What is base price and price margins in warrants?

Base price is not applied in warrants. For this reason, in pricing process, there are no lower or upper limits (free margin is applied).

How to cancel transactions due to material errors in warrants??

Pursuant to article 33/1-(b) of Borsa İstanbul A.Ş. Regulation on Principles Relating to Exchange Activities, requests of cancellation of matched trades by at least one of those authorized to trade, executed as a result of an erroneous order or orders transmitted, are evaluated by Equity Market Directorate within the framework of the criteria set forth in Article 13 of Annex-3 of the Equity Market Procedure.

https://www.borsaistanbul.com/files/equity-market-procedure.pdf

What are exchange traded funds?

An Exchange Traded Fund is a type of property ownership without a legal entity status founded by portfolio management companies upon a bylaw with the intention of managing portfolios in the account of investors according to fiduciary ownership principles, participation shares of which are traded at Borsa İstanbul AŞ. Exchange Traded Funds create and issue participation shares through delivery of portfolio assets or cash funds in such manner to reflect the composition of fund portfolio and redeem the assets or cash funds in return for the corresponding participation shares.

ETFs reflect the return on shares or other instruments (gold, bonds, foreign currencies, etc.) included in the base index pro rata to their weights in the index, and bear the risks corresponding thereto. ETF participation shares can be traded in the Equity Market through member institutions

What are commodity certificates?

These are the capital market instruments that are issued representing the commodity determined by the Capital Markets Board (CMB). Commodity certificates are an alternative investment tool for investors who want to invest in precious metals such as gold, silver and other commodity assets in the spot market.

Upon the application to be made by the issuer followed by the approval of the prospectus or issuance document by the Capital Markets Board (Board, CMB), commodity certificates, deemed suitable for trading on the Exchange, are listed with the "S1" feature code on Commodity Market, and certificates issued only to qualified investors are traded on the Venture Capital Market (VCM).

Mint certificate is a commodity certificate issued by the General Directorate of Mint and Stamp Printing House (Mint) and traded in the Exchange. The principles regarding the trading of commodity certificates registered with the CMB within the Exchange are given in the Annex-8 of the Equity Market Procedure and the prospectuses or issue documents of the instruments published by the issuers/market makers on the Public Disclosure Platform.

https://www.borsaistanbul.com/files/equity-market-procedure.pdf

Which trading methods are used in the Equity Market?

"Continuous trading “and "call auction" methods are used in the trading of equities and/or capital market instruments. The methods are applied within the framework of the principles set forth in the Equity Market Procedure and determined by the General Manager.

What is continuous trading method?

This is the method for matching the orders submitted for a capital market instrument to the System continuously during trading periods determined by the Exchange over different price levels in accordance with the priority rules and trading rules.

What is call auction method?

This is a method for collecting the orders transmitted to the System for a capital market instrument during the order collection time periods determined by Borsa İstanbul and uncrossing orders at a single price determined according to priority rules and in a way to accomplish maximum trade volume once or more throughout the trading day.

What is gross settlement?

Settlement of transactions executed in the Equity Market are realized by Takasbank by netting the buy and sell transactions on the basis of instruments and in total TL volume. Within this framework, a brokerage house engaged in both buy and sell transactions on the same equity during a day will either be debtor or a creditor with respect to the settlement for the subject equity based on the net balance after netting off the total sell amount from the total buy amount. However, in the settlement of some equities, gross settlement may be applied due to the removal of netting rule or due to market rules. Accordingly, investors intending to buy equities subject to gross settlement are required to keep the corresponding amount of cash in their accounts as of the date of settlement, while those intending to sell equities subject to gross settlement are required to keep the corresponding number of equities in their accounts as of the date of settlement.

What is short selling?

Short selling refers to the placement of a sell order or selling capital market instruments which the seller does not own. Fulfillment of the settlement obligation related to the sale with borrowed capital market instruments is also considered as short selling. For detailed information, please refer to the Capital Markets Board's Serial: V No: 65 Communiqué on Margin Trading, Short Selling and Lending and Borrowing Transactions of Capital Market Instruments.

What is uptick rule?

According to uptick rule, short sell orders to be sent to a capital market instrument subject to short selling, can only be placed at a price higher than the last transaction price of the instrument. If the last transaction price of the instrument is higher than the previous transaction price, the short sell order can be placed at the last transaction price.

What are the types of orders that can be used in Equity Market?

Detailed information on the types of orders that can be transmitted in the Equity Market is available in the link below.

https://borsaistanbul.com/en/sayfa/2857/market-functioning

What are the authorizations of various users to modify or cancel their own orders and orders entered by other users belonging to their institution?

Details of changes and cancellations on orders can be found in the Equity Market Procedure ANNEX-18 Examples of Order Types under the heading “1.3- Changes and Cancellations on Orders”.

https://www.borsaistanbul.com/files/equity-market-procedure.pdf

What is the price and time priority rule applied in order entry?

Price priority and time priority rules are applied respectively in the course of accepting and uncrossing the orders submitted in the Equity Market Trading System.

· Price Priority: Ask orders with a lower price are matched before the (ask) orders with higher prices, and bid orders with a higher price are matched before the (bid) orders with lower prices.

· Time Priority: In case of price equality, orders which are placed in the System at an earlier time are matched with priority.

What are order entry limitations?

· Price Margins: Orders outside the lower and upper price margins calculated on the base price are rejected by the System, orders cannot be placed outside the price limits of the relevant instrument.

· Price Tick: Orders that do not comply with the price tick of the relevant instrument are rejected by the System.

· Maximum Order Value: According to this rule, the TL value of an order or quote sent for a series at once cannot exceed the limit defined for this capital market instrument.

What is market making?

It refers to an activity aiming to ensure liquidity in a capital market instrument traded with continuous trading method by means of a double-sided continuous quotation (price and quantity) given by a certain member appointed therein by using a pre-defined account or accounts.

What are the circuit breaker systems applied in the Equity Market?

Equity-Based Circuit Breaker System and Market-Wide Circuit Breaker System (MWCB) are applied in Equity Market. You can find detailed information on circuit breaker systems used in Equity Market under the relevant heading of the Equity Market Procedure.

https://www.borsaistanbul.com/files/equity-market-procedure.pdf

How does the equity-based circuit breaker system work?

While a capital market instrument traded by continuous trading method is in a continuous trading phase of the trading session, if and when the price variation calculated over a certain reference value reaches or exceeds threshold value (rate) determined by the Exchange, session state of that instrument shifts to order collection phase for a temporary period of time. A price discovery is made in this instrument via a call auction. Following the completion of the processes relating to the call auction, the transactions on the instrument are again shifted to continuous trading and transactions are continued with the multiple price method.

How does the market wide circuit breaker system (MWCB) work?

If, during the day, BIST 100 Index declines by 5% or more as the first threshold and by 7% or more as the second threshold in comparison to closing of the previous day, MWCB is triggered, and all transactions in the Equity Market, contracts based on Equity and Equity Indices in Derivatives Market (VIOP), and the Equity Repo Market in the Debt Securities Market are temporarily halted. Index to be taken as reference in for MWCB, its direction(s) and rates of variation may be revised and changed by the Exchange according to the developing conditions with a prior announcement. If thresholds determined for MWCB (5% and 7%) are exceeded more than once during the day, MWCB will not be triggered for a second time for the same thresholds. When the MWCB is triggered, uptick rule on short-selling transactions will be applied automatically until the end of the session for the instruments that short selling is permitted.

Where can I find information about session states and in which session states I can submit orders?

You can access the information about the sessions and in which sessions the orders can be submitted by clicking the link below.

https://www.borsaistanbul.com/en/sayfa/2948/trading-hours

Is Equity Market open on holidays?

No, Borsa İstanbul does not operate on weekends and on public holidays. You can use the link below to find out the official holidays.

https://borsaistanbul.com/en/sayfa/3631/official-holidays

Can we get information about test environments?

You can find up-to-date information about our test environments on the link below.

https://www.borsaistanbul.com/files/BISTECH-Test-Environments.pdf

Is there any access to test systems from colocation?

Yes. Members can be given colocation users for test environments; members can also receive ITCH broadcasts. In order to obtain connection information, our members may make a request through bistechsupport_autoticket@borsaistanbul.com.

Is it possible to submit orders into the test environment with OUCH protocol?

Yes. Access to OUCH server is possible from colocation. In order to obtain connection information, our members may make a request through bistechsupport_autoticket@borsaistanbul.com.

Çerez İzni

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