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Committed Transactions Market of Sukuk (CTM) is launched within Borsa İstanbul at July 2, 2018 and trading of lease certificates commenced. CTM operates in accordance with working principles of participation banks and other banks are also eligible to trading.
CTM functions similar to the operational rules of Repo and Reverse Repo Markets within Borsa İstanbul Debt Securities Market and lease certificates are subject to trading. Committed transactions are realized by selling with a commitment to repurchase from a third party at a future date and buying with a commitment to resell to the third party at the same date. The third party has the right of withdrawal from the committed transactions.
The operational principles of Committed Transactions Market of Sukuk, which is expected to contribute to expanding the funding base of participation banks, are also deemed appropriate by Participation Banks Association of Turkey.
Aiming at providing access to finance for companies, Borsa İstanbul offers different products as part of İstanbul Financial Center vision. In line with being a financial supermarket, debt security and lease certificate issuances continue to increase in the last three years.
In 2015, 2016 and 2017, the number of debt security and lease certificate issuances have been 621, 766 and 1,217, and the funding provided to companies have been 80, 91 and 130 billion TRY respectively. As of July 2018, companies obtained 99 billion TRY funding with a total number of 849 issuances. Hence, the daily average number of listed debt security and lease certificate has been 5.8 in 2018. The share of lease certificates in total amount of issuances is 5% in 2017 and 10% as of July 2018.
As part of efforts to contribute to the development of interest-free financial instruments, the share of lease certificates in total amount of issuances is expected to increase in the upcoming period.
We wish Committed Transactions Market of Sukuk to be auspicious for Turkish capital market.
