Within the framework of the surveillance activities jointly carried out by the Capital Markets Board of Turkey (CMB) and the Istanbul Stock Exchange (ISE), netting in settlement has been removed for a number of stocks. Hence, in respect of the stocks subject to removal of netting in settlement, the ISE Settlement and Custody Bank (Takasbank) will deliver the securities receivables based on the accounts of brokerage institutions and investors following the end of the settlement period. The stocks subject to removal of netting off facility are as follows:
- Galatasaray Sportif S?nai ve Yat?r?mlar A.?. (GSRAY)
- Lafarge Aslan Çimento A.?. (ASLAN)
- Rhea Giri?im Sermayesi Yat?r?m Ortakl??? A.?. (VKFRS)
- Link Bilgisayar Sistemleri Yaz?l?m? ve Donan?m? Sanayi ve Ticaret A.?. (LINK)
- Derimod Konfeksiyon Ayakkab? Deri Sanayi ve Ticaret A.?. (DERIM)
- Latek Lojistik Ticaret A.?. (LATEK)
This practice is aimed at preventing the formation of unusual price and volume movements through trades that fail to make a real contribution to the market and which may lead to wrong impressions by third parties in ISE Stock Market. In addition to the removal of netting in settlement, in accordance with the CMB’s decision of July 23, 2010, new trading rules aimed at the protection of investors shall start to be implemented in the ISE Stock Market on October 1, 2010. Within this framework, stocks shall be classified into three groups, namely, A, B, and C, which will be subject to different trading rules. Nevertheless, such classification shall not affect the current ISE market segments.
In consideration of the new arrangements that will become effective as of October 1, 2010, netting in settlement has been removed for the following stocks: GSRAY, ASLAN, VKFRS, LINK, DERIM and LATEK as of September 21, 2010. However, as indicated in the CMB’s Weekly Bulletin dated July 23, 2010, in addition to the new arrangements that will become effective on October 1, 2010, the ISE may decide to remove the netting in settlement for the stocks as it may deem necessary. Furthermore, the ISE plans to put into effect the system on “Automatic Trading Halts and Automatic Removal of Netting in Settlement” in the beginning of 2011.
A, B, and C group classification lists shall be announced following the end of the second stock trading session on September 30, 2010. It is worth noting that, the traded value of the companies included in the B and C groups is equal to roughly 4 per cent of the ISE Stock Market total traded value. The main motive that lies behind the differentiation of the trading rules for the stocks included in B and C groups on the basis of objective criteria is to provide a convenient platform for such stocks to achieve a more sound trading structure.
As a result of the CMB’s and ISE’s joint efforts on surveillance, measures are taken for the protection of investors’ rights while technical studies are carried out in order to ensure the formation of a deep, sound and stable market. Such studies are carried out in consideration of the basic rules of the market and finance as well as the Turkish and European Union regulations.
CMB and ISE, while working jointly on new arrangements to facilitate the public offering of companies of various sizes within the framework of the initial public offering campaign, also bring about new rules for the sound operation of the secondary markets. Efforts on both areas include arrangements in compliance with international norms that will ensure the growth of the Turkish capital markets in confidence and stability.