CHAPTER 8
SECURITIES EXCHANGES IN TURKEY
SECURITIES EXCHANGES
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THERE ARE 6 GROUPS OF EXCHANGES:
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COMMODITIES
SECURITIES
GOLD AND PRECIOUS METALS
FOREIGN EXCHANGE
INDEXES
FUTURES AND OPTIONS
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IN TURKEY;
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ISTANBUL STOCK EXCHANGE (ISE)
ISTANBUL GOLD EXCHANGE (IGE)
TURKISH DERIVATIVES EXCHANGE
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SECURITIES EXCHANGES;
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STOCK EXCHANGE MARKET
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ORGANIZED STOCK EXCHANGE
OTC MARKET
BONDS AND BILLS MARKET
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ORGANIZED BONDS AND BILLS MARKET
OTC MARKET
STOCK EXCHANGES
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Stock exchanges provide liquidity for C.S.
Provide institutionalization of the firm by creating
social responsibility.
Increase the credibility of the issuing firms in the
mms.
Provide globalizatıon of the firm by selling their
stocks ın foreıgn markets or selling them to foreign
investors in domestic markets.
Provide reputation to the firms.
STOCK EXCHANGES
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NYSE WITH 2600 FIRMS TRADED
CONTROLLING APP. 80% OF THE VALUE
OF ALL ORG. TRANSACTIONS IN USA.
IN TURKEY ISE WAS ESTABLISHED IN
1986 WITH A FEW FIRMS NOW ABOUT 321
FIRMS ARE TRADED ON ISE.
ISE
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ISE WAS ESTABLISHED AS A PRIVATELY
BUDGETED, SELF-REGULATED, SEMIPUBLIC LEGAL ENTITY.
IT IS GOVERNED BY THE EXECUTIVE
COUNCIL COMPOSED OF 5 MEMBERS
ELECTED BY GENERAL ASSEMBLY.
ISE
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ONE OF THEM IS THE CHAIRMAN AND
CHIEF EXECUTIVE OFFICER APPOINTED
BY THE TURKISH GOVERNMENT FOR A
TERM OF 5 YEARS.
FOUR OTHER MEMBERS OF THE
COUNCIL REPRESENT 3 TYPES OF
EXCHANGE MEMBERS
ISE
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EXCHANGE MEMBERS: BANKS AND
BROKERAGE HOUSES ARE AUTORIZED
BY THE CMB.
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INVESTMENT AND DEVELOPMENT BANKS
COMMERCIAL BANKS
BROKERAGE HOUSES
ISE
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THE MEMBERS ARE AUTORIZED TO
TRADE FOR EACH MARKET;
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STOCK MARKET (EXCEPT COM. BANKS)
BONDS AND BILLS MARKET
REAL ESTATE CERTIFICATES MARKET
REPO-REVERSE REPO MARKET
INTERNATIONAL MARKET
ISE
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ISE MEMBERS TRADE THROUGH THEIR
REPRESENTATIVES. THERE ARE
TRADING PROGRAMS TO BE A
REPRESENTATIVE.
ISE
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SECURITIES TRADED IN ISE;
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EQUITIES
BONDS AND BILLS
REVENUE SHARING CERTIFICATES
PRIVATE SECTOR BONDS
FOREIGN SECURITIES
REAL ESTATE CERTIFICATES
INTERNATIONAL SECURITIES
ISE STOCK MARKET
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FULL-COMPUTERIZED SYSTEM HAS
BEEN INITIATED AT THE END OF YEAR
1994.
STOCK TRADING ACTIVITIES ARE
CARRIED OUT IN TWO SEPERATE TWOHOUR SESSIONS.
THERE ARE NO FIXED COMMISSIONS
BTW 0.2%-1%.
ISE STOCK MARKET cont.
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THE PRICES ARE DETERMINED ON A
“MULTIPLE PRICE-CONTINUOUS
AUCTION” METHOD.
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WHEN EACH BIDDER PAY WHATEVER THEY
BID: MULTIPLE PRICE AUCTION.
WHEN THE PRICES VARY WITH THE PATTERN
OF THE ORDERS: CONTINUOUS AUCTION.
STOCK MARKETS IN ISE
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1. NATIONAL MARKET:
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ALL COMPANIES ARE INCLUDED EXCEPTS
INV. TRUSTS
100 COMPANIES SELECTED AMONG THE
LISTED COMPANIES ARE INCLUDED IN ISE
NATIONAL 100 INDEX.
STOCK MARKETS IN ISE cont
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2. SECONDARY NATIONAL MARKET
ESTABLISHED WITH THE AIM OF
TRADING SMALL AND MEDIUM SIZE
COMPANIES STOCKS.
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CONSISTS OF COMPANIES THAT ARE;
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DELISTED TEMPORARILY OR PERMANANTLY FROM
ISE NATIONAL MRK.
LACK OF NECESSARY QUALIFICATIONS FOR
TRADING IN THE ISE NATIONAL MRK.
STOCK MARKETS IN ISE cont.
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3. NEW ECONOMY MARKET
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ESTABLISHED TO EMPOWER YOUNG
COMPANIES TO OFFER THEIR STOCKS TO
PUBLIC.
ALLOWS TRADING OF SUCH STOCKS IN AN
ORGANIZED MARKET.
STOCK MARKETS IN ISE cont.
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FOR THESE 3 MARKETS;
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SETTLEMENT OF SECURITIES TRADED IN
THESE MARKETS IS REALIZED BY THE
SETTLEMENT AND CUSTODY BANK.
SETTLEMENT PERIOD IS T+2 DAYS
MULTILATERAL NETTING SYSTEM
PAYMENTS CLEARED BY SAME DAY FUNDS.
STOCK MARKETS IN ISE cont.
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DELIVERY VERSUS PAYMENT (DVP)
ORDERS ARE ENTERED INTO THE
ELECTRONIC SYSTEM OF ISE BY DISKETTES
BTW 9.30-9.45 AM AND 2.00-2.10 PM,
THROUGH KEYBOARDS 9.30-12.00 AM AND
2.00-4.30 PM.
STOCK MARKETS IN ISE cont.
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4. WATCH LIST COMPANIES
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IT WAS ESTABLISHED WITH AN AIM OF
SPECIAL SURVEILLANCE AND
INVESTIGATION DUE TO EXTRAORDINARY
SITUATIONS:
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DISCLOSURE OF INCOMPLETE, INCONSISTENT OR
UNTIMELY INF. TO THE PUBLIC.
FAILURE TO COMPLY WITH EXISTING RULES AND
REGULATIONS LEADING TO DELISTING OF STOCKS
STOCK MARKETS IN ISE cont.
DISMISSAL FROM THE REALTED MRK.
TEMPORARILY OR PERMANENTLY IN ORDER TO
PROTECT INVESTORS’ RIGHTS AND PUBLIC
INTEREST.
Trading Hours: 2.00-3.00 PM
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STOCK MARKETS IN ISE cont.
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5. WHOLESALE MARKET
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PROVIDING TRADING OF STOCKS IN LARGE
QUANTITIES.
PERMITS THE SALE OF STOCKS THAT ARE
TRADED ON ISE NATIONAL AND REGIONAL
MRKS AS WELL AS THOSE WHICH ARE NOT
TRADED ON ISE, THROUGH CAPITAL
INCREASES OR SALE OF STOCKS OF
EXISTING SHAREHOLDERS TO
PREDETERMINED OR UNIDENTIFIED
BUYERS.
STOCK MARKETS IN ISE cont.
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BLOCK SALE OF STOCK WITHIN THE
FRAMEWORK OF PRIVATIZATION
SETTLEMENT IS REALIZED BY THE ISE
SETTLEMENT AND CUSTODY BANK
T+2
DVP
11.00-12.00 AM.
ISE INDICES
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ISE NATIONAL -ALL SHARES INDEX
ISE NATIONAL 30
ISE NATIONAL 100
SECTORIAL INDICES
ISE SECONDARY NATIONAL AND NEW
COMPANIES MARKET INDEX
ISE INVESTMENT TRUST INDEX
ISE BONDS AND BILLS MARKET
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IT IS THE ORG. MRK IN THE STRUCTURE
OF ISE.
PARTICIPANTS;
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MEMBER BANKS
BROKERAGE HOUSES
CMB OF TURKEY
CENTRAL BANK
ISE BONDS AND BILLS MARKET
cont.
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FIXED-INCOME SECURITIES OF THIS
MRK:
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GOVERNMENT BONDS
TREASURY BILLS
REVENUE SHARING CERTIFICATES
BONDS ISSUED BY PRIVATIATION
ADMINISTRATION
CORPORATE BONDS LISTED ON ISE
ISE BONDS AND BILLS MARKET
cont.
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THE MRK OPERATES ON A MULTIPLE
PRICE-CONTINUES TRADIND SYSTEM.
BONDS AND BILLS MRK CONSISTS OF;
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OUTRIGHT PURCHASES AND SALES MARKET
REPO-REVERSE REPO MARKET
ISE BONDS AND BILLS MARKET
cont.
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ALL THE SECURITIES EXCEPT GOVERNMENT
AND PRIVATIZATION ADM. ARE REQUIRED TO
FULLFILL THE LISTING REQUIREMENTS.
CLEARING AND SETTLEMENT OPERATIONS ARE
HANDLED BY THE ISE SETTLEMENT AND
CUSTODY BANK WHICH EMPLOY DVP.
OUTRIGHT PURCHASES AND SALES AND REPOREVERSE REPO TRANSACTIONS TAKE PLACE
BTW 9.30 AM-5.00 PM.
ISE INTERNATIONAL MARKET
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OPERATIONS IN THIS MARKET ARE TAXFREE.
FOREIGN CAPITAL FLOWS TO ISE.
THERE ARE TWO INT. MARKETS;
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ISE INT. DEPOSITORY RECEIPTS MRK
ISE INT. BONDS AND BILLS MRK.