In Istanbul Stock Exchange, the shares of companies from different sectors, rights to buy new shares, exchange traded funds, certificates and warrants are traded. Individual or corporate investors who opens a real account at AHL Securities, can execute continuing, market maker continuous and the single-price method transactions with market price and time priority rule based via the electronic trading system. In addition to this, you can steer your investments and perform transactions securely with our competitive commission rates, support from our experienced staff and detailed market analysis in Istanbul stock exchance (BIST). Furthermore, you can also execute your warrant, margin trading, short selling and lending transactions from your account.
Trading in the Equity Market is carried out in the following sub-markets:
The market value of the free float > 100 million TL or included in BIST 100
The market value of the free float > 25 million TL and < 100 million TL
BIST EMERGING COMPANIES
The market value of the free float < 25 M
For companies subject to monitoring and examination according to their financial structure.
COLLECTIVE AND STRUCTURED PRODUCTS
Exchange traded funds, warrants, and certificates will trade. Former “Collective Products Market”.
EQUITY MARKET FOR QUALIFIED INVESTORS
For companies where shares issued by corporations for direct sale to qualified investors without being offered to public are traded only among qualified investors.
In line with the CMB’s decision no. 17/519 dated June 3, 2011, as a result of the evaluation of the financial status and ownership structure of publicly held companies whose equities are not traded on Borsa Istanbul, Borsa Istanbul decided to start trading the equities of some companies that are registered with the CMB. Former “Free Trade Platform”
Primary Market is the market which brings together issuers, those who demand funds and savers, those who supply funds. Primary Market transactions for the equities to be offered to the public through Borsa Istanbul is carried out between 10:30 - 13:00.
Wholesale Market provides an organized, secure and transparent platform for the trading of equities in quantities of over a certain size, to predetermined and/or unidentified buyers.
Preemptive Rights Transactions
A new ticker for trading of the preemptive rights attached to a share of a traded company when it increases capital is opened for trade with an extension of “.R” for a specified time period when the rights can be used.
TRADING HOURS of BORSA ISTANBUL EQUITY MARKET
Orders which are placed in trading units and comprised of one full lot without decimals (1 piece or 1 TL nominal) or its multiples.
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 written among pending (passive) orders of the equity as per price and time priority ranking.
Orders in which only the quantity must be specified without price. These type of orders can only match with the best bid or ask on the order book and are deleted if there is none. 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 the 3.000.000 TL maximum value limit. This value is 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 as market orders do. However, remaining amounts from the execution take the execution price, transformed into limit orders and placed in the order book (given the time validity of the order is not fill and kill). Market to limit orders are subject to the 3.000.000 TL maximum value limit. This value is calculated in the same manner with the market 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.
When the Exchange members receive buy and sell orders matching in quantity and price from the same or different customers for the capital market instruments traded in the Equity Market and defined by the Exchange, within the price and value (may be defined as quantity) limits, they are allowed to report such orders to be executed to a trade before transmitting them to the order book. 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 reporting will only be allowed within the limits to be set by the Exchange. The minimum value for trade reporting is TRY 3 million as the maximum value is TRY 30 million. These values are parametric, and may be changed by stock or for the entire market with a prior notice.
Two types of trade reports are supported by the system:
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.
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.
|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|
|Daily 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.|
|Good Till Cancel||This order validity type is used in the primary market IPO’s with book building method (.HE).|
EQUITY MARKET SETTLEMENT PRINCIPLES
Takasbank is authorized to provide cash and securities settlement transactions as the central clearing and settlement institution to securities traded on Borsa Istanbul.
General settlement principles are as follows:
» Settlement day is T+2, i.e. the second business day following the transaction.
» Multilateral netting system is applied.
» Payments are cleared by same day funds.
» Delivery Versus Payment principle applies.
MARGIN TRADING, SHORT SELLING AND EQUITY BORROWING - LENDING
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.
“List of Securities Subject to Margin Trading and Short Selling” covers all equities and ETFs traded on Borsa İstanbul Markets with the exception of the Watchlist Companies Market. Therefore, equities and ETFs traded on Borsa İstanbul National, Collective Products and Second National Markets may be subject to margin trading and short selling transactions. However, with regard to the principles of application of CMB's decision dated October 30, 2014 governing classification of the equities traded on Borsa İstanbul Markets under groups, A, B, C and D;
C and D group equities may not be involved in margin trading and short selling.
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.
Trades can be executed on the Main Board, Negotiated Deals Board and on the Advertising Board in VIOP.
The Main Board is the main market where the orders are matched during the regular session and price fixing session. There are thirteen separate markets which are,
|1||Equity Options Main Board|
|2||Equity Futures Main Board|
|3||Equity Index Options Main Board|
|4||Equity Index Futures Main Board|
|5||FX Futures Main Board|
|6||FX Options Main Board|
|7||Precious Metals Futures Main Board|
|8||Commodity Futures Main Board|
|9||Power Futures Main Board|
|10||Foreign Indices Futures Main Board|
|11||Metal Futures Main Board|
|12||ETF Futures Main Board|
|13||Overnight Repo Rate Futures Board|
Negotiated Deals Board and Advertising Board
Both parties of negotiated deals are definite and the Exchange’s approval is mandatory for them to be traded on the Negotiated Deals Board. On the Advertising Board, traders indicate their interest in performing a negotiated trade. Once an advertising order is matched by the counterparty, it becomes a negotiated deal and the trade executes on the Negotiated Deals Board upon the Exchange approval.
The features and trading codes of the contracts to be traded on the Market will be announced by Borsa Istanbul.
Future Contract Codes
For futures contracts, contract codes are created in a way to include information on the kind of contract, underlying asset code, mini contract code, contract month and whether the contract size is standard or not.
|Futures||Underlying Asset Code||Mini contract code||Maturity Date (MMYY-June 2014)||S: Standard|
N: Non-Standard (as a result of corporate action)
Option Contract Codes
For option contracts, contract codes are created in a way to include information on the kind of contract, underlying asset code, mini contract code, contract month, C/P, strike price and whether the contract size is standard or not.
|Option||Underlying asset code||Mini contract code||A: American- option (can be exercised on or before maturity)|
E: European- option (can be exercised on maturity date only)
|Contract maturity date (MMYY-June 2014)||C: Call option|
P: Put option
|Strike price, 2 digits after comma||S: Standard |
N: Non-Standard (as a result of corporate action)
|Normal Session Hours|
|Equity Futures and Options||09:10 - 17:40|
|Index Futures and Options||09:10 - 17:45|
|Other||09:10 - 17:45|
|Contracts||Half Day - Normal Session Hours*|
|Equity Futures and Options||09:10 - 12:40|
|Index Futures and Options||09:10 - 12:45|
|Other||09:10 - 12:45|
* Unless otherwise stated
** Last 10 minutes of the normal session is called Closing Period. Daily settlement prices are calculated by using the trades in the Closing Period.
The settlement method for single stock future and single stock option contracts is physical delivery. For single stock futures and single stock options, physical delivery is realized by exchange of dematerialized equities over the settlement or strike price of the contract respectively.
The settlement method for index options and futures, currency futures, commodity futures, gold futures, energy futures, steel scrap futures and FBIST ETF futures is cash settlement. For options profit/loss is determined by the difference between strike price and settlement price at the end of the maturity date.
RISK MANAGEMENT AND MARGINING
Risk management at VIOP is carried out by Takasbank, clearing house for VIOP, and CCP as well. Trades executed at VIOP are subject to portfolio based margining method. Takasbank uses Standard Portfolio Analysis of Risk (SPAN) algorithm for portfolio based margining. Parameters constituting the basis for portfolio based margining calculation shall be determined and announced by Takasbank. Clearing Legislation shall be applied regarding risk management, pre-order risk management and margining method.