BORSA İSTANBUL FOR INVESTORS · 46 Borsa İstanbul Government Debt Securities Indices 47...

BORSA İSTANBULFOR INVESTORS

BORSA İSTANBULFOR INVESTORS

TABLE OF CONTENTS1 BorsaİstanbulMarkets1 Introduction3 EquityMarket6 NationalMarket6 ListingCriteriaontheNationalMarket7 CollectiveProductsMarket8 RegistrationontheCollectiveProductsMarket8 SecondNationalMarket8 RegistrationontheSecondNationalMarket10 WatchlistCompaniesMarket10 SettlementintheEquityMarket11 EquityMarketKeyStatistics12 DebtSecuritiesMarket13 EurobondsMarket14 ClearingandSettlementintheDebtSecuritiesMarket17 DailyAverageTradedValueontheDebtSecuritiesMarket18 EmergingCompaniesMarket-ECM19 GuaranteeAccount20 DerivativesMarket(VİOP)20 MarketsandProducts21DerivativesMarketKeyStatistics22 BIST30IndexFuturesContractSpecifications24 WhatdoIneedtodototradeatVIOP?25 SingleStockFuturesContractSpecifications26 USD/TRYFuturesContractSpecifications27 EUR/USDFuturesContractSpecifications29 TradingFee29 RiskManagementandMargining31 ClearingandSettlementatVIOP32 ClearingMembershipandAccountTypes

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IntroductionBorsaİstanbulprovidesafairandtransparentenvironment

fortradingofvarioustypesofsecuritiesincludingequities,

ETFs,warrants,equityoptionsandfutures,equityindex

optionsandfutures,currencyoptionsandfutures,

preciousmetalsfutures,commodityfutures,power

futures,certificates,governmentbonds,Treasurybills,

leasecertificates,corporatebonds,repoandreverserepo

agreements(withgovernmentsecurities,corporatesecurities

andequities)preciousmetals,preciousstonesandforeign

securities(EurobondsissuedbyTurkishTreasury).

1Borsa İstanbul

Markets

35 PreciousMetalsandDiamondMarket38 DataDisseminationinBorsaİstanbulMarkets38 PublicDisclosurePlatform39 InternationalStandingofBorsaİstanbulMarkets40 ValueofSharesTradinginEmergingMarkets41 ValueofBondsTrading42 Indices42 BISTEquityIndices44 SectorandSub-sectorIndices46 BorsaİstanbulGovernmentDebtSecuritiesIndices47 Multi-NationalIndices47 Greece-Turkey30Index(GT-30)47 TheDowJonesFEASIndices47 S&P/OICCOMCEC50ShariahIndex48 IBTX(IstanbulTradedIndex)andIBTXBanking50 CorporateGovernance51 IPOinTurkey51 NumberandValueofIPOsinTurkey52 PreparationofanIPO56 CorporateSocialResponsibility56 BorsaİstanbulSchools57 SustainabilityPlatform57 UnitedNations’GlobalCompact57 UnitedNations’PrinciplesonResponsibleInvestment-UNPRI57 SustainableStockExchangesInitiative-SSE57 BorsaİstanbulSustainabilityIndex58 InternationalMembershipsandRecognitions

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•EmergingCompaniesMarket

•DebtSecuritiesMarket—OutrightPurchasesandSalesMarket—OfferingMarketforQualifiedInvestors—Repo/ReverseRepoMarket—InterbankRepo/ReverseRepoMarket—RepoMarketforSpecifiedSecurities—EquityRepoMarket—InternationalBondsMarket—EurobondNegotiatedDealsPlatform

•DerivativesMarket-EquityOptionsandFutures-EquityIndexOptionsandFutures-CurrencyOptionsandFutures-PreciousMetalsFutures-CommodityFutures-PowerFutures

•PreciousMetalsandDiamondMarket-PreciousMetalsMarket-PreciousMetalsLendingMarket-DiamondandPreciousStoneMarket

Currently,therearefivemainmarketsoperatingatBorsaİstanbul;EquityMarket,EmergingCompaniesMarket,DebtSecuritiesMarket,DerivativesMarket,andPreciousMetalsandDiamondMarket.

Marketsandsub-marketsofBorsaİstanbulareasfollows;

•EquityMarket—NationalMarket—SecondNationalMarket—CollectiveProductsMarket—WatchlistCompaniesMarket—FreeTradePlatform

Equity Market

Stocksandrightscouponsofcompaniesfromvarioussectors,exchangetradedfundsandstructuredproducts(warrantsand

certificates)aretradedontheEquityMarket.BorsaİstanbulEquityMarketoffersaliquid,transparentandsafeinvestment

platformforlocalandforeigninvestors.

TradesareexecutedautomaticallyontheEquityMarketasper“MultiplePrice-ContinuousAuction”principlebasedonprice

andtimepriorityruleviatheelectronictradingsystem.

“ContinuousTradingviaMarketMaking”isatradingmechanismdesignedtoassureliquidityinwhichamemberfirmactingas

amarketmakerprovidescontinuoustwo-sidedquotes(priceandamount)andmaintainsthespreads.Singlepriceauctionis

alsorunforsomesecuritiestradedontheBorsaİstanbulEquityMarket.Tradesareexecutedintwotradingsessions,oneinthe

morningandtheotherintheafternoon.An“OpeningSession”basedonSinglePriceSystemisheldatthebeginningofboth

sessions.StartingfromMarch2,2012,Borsaİstanbullaunched“ClosingSession”whichtakesplaceattheendofthesecond

tradingsession.Openingandclosingsessionsrunforthesecuritiestradedoncontinuousauctionandcontinuousauctionvia

marketmakingexcludingwarrants,certificates,exchangetradedfundsandrightscoupons.

MemberscollectorderselectronicallyfrominvestorsandtransmitthemtoBorsaİstanbultradingsystemviaremoteaccess

usingExAPIandFixAPImessaginginterfaces.Memberrepresentativesmayalsoenterbuyers’andsellers’orderstothe

ElectronicTradingSystemviatradingterminalslocatedinthetradingfloorandmembers’offices.

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TheEquityMarketisopenfromMondaytoFridayandtradinghoursareasfollows:

EquityMarket’stradinghoursarealsovalidfortheEmergingCompaniesMarket.

*WatchlistCompaniesMarkettradingsessionwillberunfrom09:15to12:40,whentheEquityMarketisopenforahalfdayon

certainholidays.

**ReferstotradinghoursofofficialauctiontransactionsrealizedwithME,MF,MV,MCcodes.

Note:Closingsessionwillberunonhalftradingdaysphasesofwhicharegivenbelow:

•OrderTransfers(NoOrderEntries):(3minutes,12:30–12:33)

•CallPhase(OrderCollection):(3minutes,12:33–12:36)

•PriceDeterminationPhase:(2minutes,12:36–12:38)

•TradesatClosingPrice/SinglePrice:(2minutes,12:38–12:40)

NationalMarket

SecondNationalMarket

CollectiveProductsMarket

•ETFMarket

•WarrantsMarkets

•CertificatesMarket

•FreeTradePlatform

FirstSession:09:15-12:30

OpeningSession:09:15-09:35

MainSession:09:35-12:30

SecondSession:14:00-17:40



ClosingSession:17:30-17:40

TradesatClosingPrice/SinglePrice:17:38–17:40

WatchlistCompaniesMarket*



TradesatClosingPrice/SinglePrice:17:38–17:40

PrimaryMarket

WholesaleMarket

OfficialAuctionMarket**

10:30-12:00

OfficialAuctionMarket

RightsCouponMarketRelevantmarket’stradinghours

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Group 1 Group 2 Group 3

Marketvalueofpubliclyofferedstocks

Minimum†135,000,000

Minimum†68,000,000

Minimum†33,500,000

Profitsbeforetaxmusthavebeenearned

inatleastoneofthelasttwoyears

inatleastoneofthelasttwoyears

Thelast2years

Ratioofpubliclyofferredstockstopaid-inorissuedcapital

- Minimum5% Minimum25%

Equitycapitalinthemostrecent,independentlyauditedfinancialstatements

Minimum†33,500,000

Minimum†22,000,000

Minimum†13,500,000

National Market

NationalMarketisthemainmarketofBorsaİstanbulwherethestocksofcompaniesaretraded.

Listing Criteria on the National Market

Audit:ThecorporationmustprovidetheExchangewithitsfinancialstatementsandindependentauditreportswhichwillbe

includedintheprospectusinaccordancewiththeCapitalMarketsBoardofTurkey(CMB)regulations.

OperatingTerm:Atleast3calendaryearsmusthaveelapsedsincetheestablishmentofthecorporation.Intheapplication

ofsub-paragraph(b),paragraphoneofthisarticle,theamountoftimethatthebusinesshasexistedinanyformofacapital

companyotherthanajointstockcompanyshallbetakenintoconsideration.Intheevaluationofthelistingapplicationbya

newcompanyintheformofaholdingcompany,whichisfoundedwiththeminimum51%participationofacompanyolder

thanthreeyears,therequirementofahistoryofminimumthreeyearsshallnotbesought.However,theequitycapitalofthe

participationswithaminimumhistoryofthreeyearsmustnotbelessthan50%oftheassetsizeofthenewlyestablished

holdingcompany.

Amongtherequirementslistedunderthefollowingalternativegroups,thecorporationmustmeetallthoserequirements

whichfallintothesamegroup.

SoundFinancialStructure:TheExchangemanagementmusthavehadthecorporation’sfinancialstructureexaminedand

accepteditsabilitytocontinueasanongoingconcern.

Others:

•Thecorporation’sarticlesofassociationmustnotincludeanyprovisionsrestrictingthetransferandcirculationofthe

securitiestobetradedontheExchangeorpreventingtheshareholdersfromexercisingtheirrights.

•Significantlegaldisputeswhichmightaffectthecorporation’sproductionoractivitiesmustnotexist.

•ForreasonsotherthanthoseacceptabletotheExchange,thecorporationmustnothavesuspendeditsactivitiesformore

than3monthswithinthelast1year,notfiledforitsliquidationoranarrangementwithitscreditors,andnothavefacedother

similarsituationsdeterminedbytheExchange.

•Thecorporation’ssecuritiesmustcomplywiththecriteriapre-determinedbytheExchangemanagementintermsofcurrent

andpotentialtradingvolumes.

•Thecorporation’slegalsituationintermsofitsestablishmentandactivitiesaswellasthelegalsituationofitssharesmustbe

documentedtoverifytheircompliancewiththerespectivelegislation.

Collective Products Market

TheCollectiveProductsMarketwascreatedinordertoensurethatthesharesoftheinvestmenttrusts,realestate

investmenttrustsandventurecapitalinvestmenttrusts,exchange-tradedfundsparticipationcertificates,warrantsand

certificatesaretradedinaspecialmarketsegment.Inthisseparatesectionthepricesofthesecuritiesaredeterminedina

regulatedandtransparentmarketundercompetitiveconditions.Theprinciplesgoverningtradingandsettlementonthe

NationalMarketalsoapplyintheCollectiveProductsMarket.Besidesmultipleprice-continuousauctionmethod,continuous

auctionviamarketmakingorsinglepriceauctionsystemscouldalsobeemployedasthetradingmethod.

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Registration on the Collective Products Market

Fortheparticipationcertificatesofinvestmenttrusts,

warrants,realestateinvestmenttrustsandventurecapital

investmenttrusts,theapplicationprocedureisthesameas

intheNationalMarket.However,inexchange-tradedfunds;

•Allinformationanddocumentsprovidedinrelationwith

theCMBforapprovalinformationanddocumentsfor

participationcertificates,

•CMBapproval,

•ProspectusandcircularapprovedbytheCMB,

•Salesresultsafterpublicofferingincompliancewiththe

formatdeterminedbytheBorsaİstanbul,

•Otherinformationanddocumentstoberequestedby

BorsaİstanbulshallbesubmittedtoBorsaİstanbul.

Theapplicationsfortradingofwarrantsandother

structuredproductsissuedinaformavailablefortradingon

BorsaİstanbulaspertheCMBregulationsshouldbemade

simultaneouslywiththeapplicationforapprovalofthe

prospectustotheCMB.

Second National Market

CompaniesthatpartiallymeetthelistingcriteriaofNational

Marketandpromiseagrowthpotentialcanbetraded

ontheSecondNationalMarket.ThePrinciplesgoverning

tradingandsettlementontheNationalMarketalsoapply

fortheSecondNationalMarket.

Registration on the Second National Market

•Inorderforacompanyofwhichprospectusisapprovedby

theCMBandfilesanapplicationforthetradingofitsstocks

ontheExchangetobeadmittedtotheSecondNational

Market,

•Theapplicationmustrefertoallsharesofsametypeissued

untiltheapplicationdate.

•Marketcapitalizationofthepubliclyofferedsharesofthe

companyandtherateofthenominalvalueoftheseshares

topaid-inorissuedcapitalmustbeatleastTL6.8million

and15%orTL13.5millionand5%,respectively1.

•ThedecisionofBorsaİstanbul,inconsiderationofthe

financialandlegalstatus,activitiesandtheliquidity

potentialofacompany,isrequiredforthetradingofthat

companyontheSecondNationalMarket,providedthat

thereisnorestrictionforthecirculationoftheshares.

•ForreasonsotherthanacceptabletotheExchange,

thecorporationmustnothavesuspendeditsproduction

activitiesformorethanthreemonthswithintheprevious

year,notfiledforliquidationorenteredintocompositionor

anyotherarrangementwithitscreditors,andnothavefaced

similarsituationsdeterminedbytheExchange.

(1)TheabovevaluescanberesetbyBorsaİstanbulwithreferencetotheincreaseintheannualproducerpriceindexannouncedbyTurkishStatisticalInstitute.

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Watchlist Companies Market

The“WatchlistCompaniesMarket”wasestablishedwithanaimtoprovideanorganizedandliquidmarketfortradingofstocksofcompaniesunderspecialsurveillanceandinvestigationduetoextraordinarysituations2withrespecttostocktransactionsand/ortothecompaniestradedonBorsaİstanbul.

Settlement in the Equity Market

TheclearingandsettlementofsecuritiesandcashregardingBorsaIstanbulEquityMarketisrealizedonT+2basis.

CashsettlementiscarriedoutviaTakasbankcashsettlementpoolaccounts.ThesecuritiesclearingandsettlementoperationsarecarriedoutviaTakasbankSettlementPoolAccountwithMerkeziKayıtKuruluşuInc.(MKK).MKKandTakasbanksystemsarefullyinterlinkedinreal-time,sosecuritiestransfersarereflectedintheMKKinstantaneously.SettlementisrealizedalongwiththedetailsthataretransferredfromtheMKK.

ThecustodyaccountsareheldwithMKKonbeneficialownerbasis;participantshaveasettlementpoolaccountbesidestheirownportfolioaccountandinvestorsub-accounts.ThecashaccountsareonparticipantbasisandheldwithTakasbank.

Attheendofeachtradingday,BorsaIstanbultransmitsdetailsofalltransactionsthathavebeenundertakenbythebrokeragehousesintwotradingsessionstoTakasbank.Uponreceiptofthisdata,Takasbankmultilaterallynetsthesettlementposition,indicatestheobligationsforeachbrokerineachsecurity,andcalculatestheirnetcashposition.

ThenetsecuritiessettlementpositiononclientbasisistransmittedtoMKKontradeday(T).DetailsofnettingactivityaremadeavailabletoparticipantselectronicallyonTday,showingdetailsofsettlementamountsdue.Attheendoftheday,thesecuritiesofthedeliveringclientsareblockedautomaticallybytheMKKforsettlementpurposes.Thereceiptinstructionsforthetransferofsecuritiesfromtheparticipantaccountstotheclientsub-accountsareformedwithintheMKKsystem.

OnT+1,netsettlementrecordsthatarecheckedbytheMKKaremadeavailabletoparticipantselectronically.Incaseofadiscrepancy,participantscanapplytoBorsaIstanbulforamendmentuntil17:40onT+1.Thesettlementrecordsareupdatedaccordingtoamendmentsandthecorrectcontractdetails.

(2)Disclosureofincomplete,inconsistentand/oruntimelyinformationtothepublic;failuretocomplywiththeexistingrulesandregulationsaswellasothersituationsleadingtothedelistingofstocksand/ordismissalfromtherelatedmarkettemporarilyorpermanentlyinordertoprotectinvestors’rightsandthepublicinterest.

Equity Market Key Statistics

2007 2008 2009 2010 2011 2012 2013*

No. of Companies 319 317 315 338 363 406 421

No. of ETFs 8 9 10 12 12 16 17

Market Capitalization(Million US $, ETFs Exc.)

289,986 119,698 235,996 307,551 201,982 311,246 237,641

Total Traded Value (Million US $) 300,842 261,274 316,326 425,747 423,851 348,606 431,273

BIST 100 Index (TL) 55,538.13 26,864.07 52,825.02 66,004.48 51,266.62 78,208.44 67,801.73

BIST 100 Index (US $) 2,789.66 1,027.98 2,068.18 2,499.75 1,580.45 2,561.94 1,853.28

BIST 30 Index (TL) 70,457.30 35,001.85 66,992.07 81,338.13 61,698.29 97,728.24 82,447.87

BIST 30 Index (US $) 3,539.04 1,339.38 2,622.85 3,080.47 1,902.04 3,201.36 2,253.62

*Asofend2013

*IncludesEmergingCompaniesMarketandFreeTradePlatform

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OnT+2,thesecuritiesofthedeliveringclientsaretransferred

fromthesettlementblockageaccounttosettlementpool

accountoftheparticipantwithintheMKKsystem.The

transferofsecuritiesfromparticipantsettlementpool

accounttoTakasbankSettlementPoolAccountwithinthe

MKKsystemisexecutedbytheMKKautomatically.Securities

aretransferredtoclientsub-accountsbytheMKK.

Membersareentitledtogettheirreceivablesfrom

settlement,prioritizedaccordingtothetimeofthe

fulfillmentoftheirobligations.Ifparticipantsfulfilltheir

obligationspartially,theyareentitledwiththeirreceivables

partially.Settlementcanoccurcontinuouslyintheprocessing

daysubjecttotheavailabilityofcashandsecurities.These

transfersoccursimultaneouslywiththeinternalbookentry

settlementofthenettedsecuritiespositions,providedthat

theTakasbankSettlementPoolAccountisavailable.

Participantsareexpectedtofulfilltheircashobligationsby

usingtheircashaccountswithTakasbankuntil16:30for

BorsaIstanbulEquityMarketsettlements.Participantscan

transfercashfromtheirotheraccountswithinTakasbankor

fromotherbanksusingtheCentralBankofTurkey’s(CBoT)

ElectronicFundTransfer(EFT)systemorusingsameday

receivablesfromBorsaİstanbulDebtSecuritiesMarketor

TakasbankMoneyMarket.Settlementproceduresarethe

samefortheCollectiveProductsMarket.

Ifthemembersareunabletofulfilltheirbothcashand

securitiessettlementobligationsuntil16:30atT+2,thenthey

aredeemedindefaultwithoutanyfurthernotificationand

Takasbankexecutesdefaultprocedures.

Debt Securities Market

TheDebtSecuritiesMarketiscomprisedoftheOutright

PurchasesandSalesMarket,Repo-ReverseRepoMarket,

InterbankRepo-ReverseRepoMarket,RepoMarketfor

SpecifiedSecurities,OfferingMarketforQualifiedInvestors

andEquityRepoMarketwhereprimaryandsecondarymarket

transactionsareconducted.

GovernmentdebtsecuritiesdenominatedinTurkishLiraand

foreigncurrency,revenueindexedbonds,privatesectorbonds,

privatesectorborrowinginstruments,liquiditybillsissued

byCentralBankofTurkey(CBoT),debtsecuritiesissuedby

thePrivatizationAdministrationandHousingDevelopment

AdministrationofTurkeyandleasecertificatesissuedbythe

publicandprivatesectorsaretradedontheBorsaİstanbul

DebtSecuritiesMarket.RepoandReverseRepotransactions

arealsoconductedonthisMarket.

TradingontheDebtSecuritiesMarketisconducted

electronicallyviathemultiplepricecontinuousauction

system.OutrightPurchasesandSalesMarketwasfoundedon

June17,1991,Repo-ReverseRepoMarketbecameoperational

onFebruary17,1993,TheOfferingsMarketforQualified

InvestorsstartedonMay17,2010,RepoMarketforSpecified

SecuritieswasfoundedonDecember17,2010whileInterbank

Repo-ReverseRepoMarketbecameoperationalonJanuary7,

2011andEquityRepoMarketonDecember7,2012.TheMarket

isopenfromMondaytoFridayandthetradinghoursareas

follows:

OutrightPurchasesandSalesMarket

Samedayvaluedateorders09:15-12:00/13:00-14:00

Forwardvaluedateorders09:15-12:00/13:00-17:00.

OfferingMarketforQualifiedInvestors

Allorders09:15-12:00/13:00-14:00

Repo/ReverseRepoMarket

InterbankRepo/ReverseRepoMarketandRepoMarketforSpecifiedSecurities

Samedaybeginningvaluedateorders09:15-12:00/13:00-14:00

Forwardbeginningvaluedateorders09:15-12:00/13:00-17:00

EquityRepoMarket

Samedayvaluedateorders:09:35-12:00

Forwardvaluedateorders:09:35-12:00

Eurobonds Markets

International Bonds Market (IBM) and Eurobond Negotiated Deals Platform (ENDP)

TurkishEurobonds,internationaldebtsecuritiesissuedbytheTurkishUndersecretariatofTreasury,andotherinternational

debtsecuritieshavingthenatureofdebtsecuritiesregisteredbytheCMBandlistedand/orregisteredbyBorsaİstanbulmaybe

tradedontheBorsaİstanbulEurobondsMarket.

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Clearing and Settlement in the Debt Securities Market

ClearingandsettlementoperationsforBorsaIstanbulDebtSecuritiesMarketareexecutedbyTakasbank.

Theclearingandsettlementtransactionsofdebtsecurities,namely,governmentbondsandbills,T/LandF/Xdenominated

TreasurysukukissuesandcorporatedebtsecuritiesareexecutedbyTakasbank.

Settlementoftradesintheprimarymarketandintheoverthecountersecondarymarketforthegovernmentdebtsecuritiesis

realizedviatheElectronicSecuritiesTransferSystemoperatedbyandfinalizedthroughtheCBoT.(CentralBankofTurkey)

Theintermediaryinstitutions’sovereigndebtsecuritiesportfoliosaresafekeptatCBoTandsettlementisconductedvia

TakasbankcashandsecuritiesaccountsheldwithCBoT.

Thebeneficialowners’sovereigndebtsecuritiesaresafekeptatbeneficial-ownerbasisinMKKsub-accountsandsettlementis

conductedviaTakasbankcashandsecuritiesaccountsheldwithCBoT.Incaseofasettlementtransactionarisenasaresultof

thesellingofbeneficial-ownedsecurities,thesesecuritieshavetobetransferredfromMKKaccountstoTakasbankaccountsat

theCBoT.

ForF/XdenominatedTreasurysukukissues,settlementtransactionsareconductedviaTakasbankcashandsecuritiesnostro

accountsheldwithforeigncorrespondentbanks.ForTRYdenominatedTreasurysukukissues,settlementtransactionsare

conductedviaTakasbankcashandsecuritiesaccountsheldwithCBoTandtheseinstrumentsaresafekeptatCBoT.

Securitiessettlementoftransactionsincorporatebondsaswellasotherdebtinstrumentsotherthangovernmentbondsand

billsandTreasurysukukissuesareconductedthroughtheMKKsystemviasecuritiesaccountswhereascashissettledthrough

Takasbankcashaccounts.TheDeliveryversusPayment(DvP)principleisemployedwithasettlementdateofT+0(Valuedate

isspecifiedatthetimeoftrade)fortransactionsinbothsovereignandcorporatedebtinstruments.

IntheDebtSecuritiesMarket,BorsaIstanbulprovidesaplatformforthememberstomatchorders.Informationonexecuted

tradesispassedtoTakasbankinrealtime.TakasbankmultilaterallynetsalltradesforeachBorsaIstanbulmemberfor

eachsecuritytradedandforcash.Securitiesobligationsduetotradesincorporatedebtinstrumentsaremanagedthrough

Takasbank’ssecuritiesaccountatMKK.Theseobligations,togetherwithreceivablesdue,aremonitoredbymembers

electronicallyviaMKK’ssystemontradeday.

Insettlementoftransactionsingovernmentbondsandbills,participantsarerequiredtoprovidesettlementinstructionsto

Takasbankbefore16:30hoursonthesettlementdatethroughtheElectronicSecuritiesTransferSystemoftheCBoTorthrough

TakasbankElectronicTransferSystem(TETS).SecuritiesareinitiallycreditedtoTakasbank’saccountatCBoTandsubsequently

movedbythebuyingpartytotheiraccountatCBoT.Althoughthedeadlineforsettlementis16:30hours,settlementis

continuousthroughouttheprocessingdaysubjecttoavailabilityofcashandsecurities.Onlytrades,executedbefore14:00

hours,canbesettledonthesameday.Settlementdeadlinesarethesamefortransactionsincorporatedebtinstruments.

InsettlementoftransactionsinF/Xdenominatedsukukissues,participantsarerequiredtoprovidesettlementinstructionsto

Takasbankbefore15:00hoursforEURdenominatedissuesandon16:30hoursforUSDdenominatedissuesonthesettlement

date.

ParticipantsareexpectedtofulfilltheircashobligationsbyusingtheircashaccountswithTakasbankuntil16:30hoursforthe

DebtSecuritiesMarketsettlements.ParticipantscantransfercashfromtheirotheraccountswithinTakasbankorfromother

banksusingtheCBoT’sElectronicFundTransfer(EFT)systemorusingsamedayreceivablesfromBorsaIstanbulEquityMarket

orTakasbankMoneyMarket.

Ifthemembersareunabletofulfilltheirbothcashandsecuritiessettlementobligationsuntil16:30atT+2,thentheyare

deemedindefaultwithoutanyfurthernotificationandTakasbankexecutesdefaultprocedures.

Settlement in Eurobonds Market

Thevaluedateoftheordersisminimum1businessday(V=T+1)andmaximum15(V=T+15)calendardays.

AllBorsaİstanbulmembersauthorizedtotradeonBorsaİstanbulDebtSecuritiesMarketOutrightPurchasesandSalesMarket

areeligibletotradeonEurobondsMarkets,providedthattheydepositacollateralofUSD50,000orotherequivalentsstated

intherespectivelegislation.

ThecashandsecurityclearingandnettingoperationsoftheEurobondtransactionsonEurobondsMarketarerealizedby

Takasbank,andsettlementisfinalizedthroughtheaccountsofmemberswithEuroclearbank,theinternationalclearing

agencydeterminedbyTakasbank.Nettingisexecutedbilaterallyonthebasisofsecurity,valuedateandcurrencybetween

thetwopartiesofthetransaction.ThesettlementmethodisDvP.Thecashsettlementofthetransactionsisrealizedonthe

currencyoftherelevantEurobond.

Securityandcashobligationsshouldbefulfilleduntil18:30(BelgiumTime)onvaluedate.Ifthemembersareunabletofulfill

theirsettlementobligationsuntilthistime,thentheyaredeemedindefaultwithoutanyfurthernotificationandTakasbank

executesdefaultprocedures.

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2007 2008 2009 2010 2011 2012 2013**

Debt Securities Market* 9,016 10,014 8,726 9,232 9,680 15,074 14,496

Outright Purchase and Sales Market 1,106 954 1,071 1,191 1,151 790 860

Repo and ReverseRepo Market 7,910 9,060 7,655 8,041 6,894 8,210 6,622

Interbank Repo /Reverse Repo Market - - - - 1,614 6,051 6,969

Repo Market forSpecified Securities - - - - 20 21 42

Offering Market forQualified Investors - - - 0.11 1 3 3

Daily Average Traded Value on the Debt Securities Market (US $ million)*

*Thetotaldailyaveragevalueonthemarketcanbedifferentfromthesumofthesub-marketdailyaveragebecauseofrounding.

**Dataisupdatedasofend2013

1918

Emerging Companies Market - ECM

TheECMisestablishedasadistinctmarketwithintheBorsa

İstanbultocreateatransparentandorganizedplatform

whereshares,issuedbycompanieswithgrowthpotentialto

raisefundsfromthecapitalmarkets,canbetraded.TheECM

RegulationwaspublishedonAugust18,2009andthefirst

tradingtookplaceonFebruary4,2011.

2011 2012 2013

Numberofcompaniesgonepublic

2 10 9

Fundsraised(USD) 15,413,710 48,709,612 33,083,714

Sharesofthecompanies,registeredwiththeCapitalMarket

BoardofTurkey(CMB),butfailtomeetthecompletesetof

listingrequirementsofBorsaİstanbulcanbetradedonthe

ECM.TheshareseligiblefortradingontheECMinclude

thoseissuedbyjointstockcompaniesincapitalincreases

bypartiallyorfullyrestrictingthepreemptiverightsofthe

existingshareholders,andinthecaseofsecondarypublic

offerings,thesharesacquiredbyusingtherightsattached

tosuchshares.TheECMaimsthat,theproceedsofaninitial

publicoffering(IPO)ordirectlysatisfythefinancialneeds

oftheissuingcompany.Thus,anIPOoraprivateplacement

salebyashareholderisnotallowedontheECM.

Noquantitativecriteriasuchasprofitability,companyage,

marketcapitalizationsize,orminimumcapitalamountare

requiredforadmissiontotheECM.

Yet,thereisaceilingconstraintthattheECMapplicant

companiesshouldnotmeetthecriteriadefinedbythe

Borsaİstanbullistingregulation.Theapplicationsofsuch

companiesarerejectedandadvisedthattheyshouldapply

fortheEquityMarketinlinewiththeBorsaİstanbullisting

regulation.TheECMtradedsharesareregisteredwiththe

MerkeziKayıtKuruluşu(CentralRegistryAgency,CRA)

systemindematerializedform.Thecustodyandsettlement

oftheECMsharesarerealizedinthesamemethodasthe

sharestradedontheEquityMarket.Thetradingactivityis

alsocarriedoutonthesameelectronictradingplatformwith

theEquityMarketatthesametradinghoursalthoughby

differenttradingmethods.Mainly,“ContinuousAuctionwith

MarketMaker”systemisemployedfortheECMwhereas

“SinglePrice”methodisemployedforthesecuritieswithout

aMarketMaker.Cashandsecuritysettlementoftradesare

completedbytheİstanbulSettlementandCustodyBank

(Takasbank).Deliveryandexchangeofsecuritiesandcash

ismadeonT+2dayviaTakasbankandtheCRA.TheECM

tradesareTurkishLiradenominated.

Inordertoeasetheprocessofapplicationandcompliance

withtherespectiverulesandregulations,“MarketAdvisor”

systemisestablishedfortheECM.

InMarketAdvisorysystemBorsaİstanbulauthorizes

theMarketAdvisorsasdefinedintheECMRegulation.

WithintheframeworkoftheCMBandtheBorsaİstanbul

regulations,theMarketAdvisorisresponsibletoassistthe

companytocompletethepreparationsnecessary

fortheadmissionapplicationtotheECM;andafter

admissiontotheECMDirectory,toprovideadvisoryservices

tothecompanytohelpcomplywiththecapitalmarkets

regulationsandtheBorsaİstanbulregulation.

Intermediaryinstitutionsholdingan“InvestmentAdvisoryLicense”or“PublicOfferingIntermediationLicense”,portfoliomanagementcompaniesholdingan“InvestmentAdvisoryLicense”andventurecapitalinvestmentcompaniesareeligibletobemarketadvisors.TheECMenablesinvestorstoconnectwiththecompanieswithhighgrowthpotentialandtoallocatetheirportfolioinvestmentstosuchcompaniesandtobecomeshareholders.Intermediaryinstitutionsshouldgetthe“ECMRiskNotificationForm”whichintroducestheECMtoinvestorsandstatesitsmaindifferencesandrisks,signedbyinvestorsbeforeprovidingbrokerageservicesfortradingontheECM.

AcompanytradedontheECMcanbetransferredtoasub-marketoftheEquityMarketprovidedthatitmeetstherequirementstobetradedonthatspecificmarket.

Inordertofacilitatethepublicofferingprocedures,theECMoffersavarietyofincentivestocompaniessuchasexemptionsandalleviationsfromsomerequirementsaswellasfeereductions.CMBregistrationfee,CRAmembershipandtransactionfeesandBorsaİstanbulfeesforthecompaniesarereducedtoonetenth(1/10)levelofthoseintheEquityMarket.KOSGEB(SmallandMediumSizedBusinessDevelopmentandSupportOrganizationoftheMinistryofIndustryandTrade)hasanincentiveprogram,foritsmemberSMEs,tohelptheECMcompaniesfundtheirinitialpublicofferingcostsuptoTL100,000.

Guarantee Account

BorsaIstanbulhasestablished“GuaranteeAccount”incompliancewithArticle34of“RegulationsofBorsaIstanbul”withanaimtoavoidthedelaysinsettlementoftransactionsrealizedonBorsaIstanbulEquityandDebtSecuritiesMarketsandtoprotectthecounterpartyunabletocollectreceivablesasaresultofthefailureoftheotherparty.ThefundsoftheAccountsaremadeupoftheinitialcontributionmadebyBorsaIstanbulandthefinescollectedfromBorsaIstanbulmemberswithlatepaymentsanddeliveriestosettlement.

Thesefunds,currentlymanagedbyTakasbank,areactivatedeveryday.TheequitymarketguaranteeaccountisactivatedandputintotheTakasbankcashsettlementpoolaccountinthemorningofthesettlementday(T+2forequities)providingtheinitialliquiditytothesettlementprocess.Attheendofthesettlement,ifallthepartiesfulfilltheirobligations,thefundisreleasedinfullandremuneratedinmarkettermsviatheTreasuryDepartmentofTakasbank.Otherwise,itisusedtocoverthefailureofthebuyeragainsttheseller.ThecoverageislimitedtotheprevailingvalueoftheFunds.Thereforetheequitymarketguaranteefundisactuallyatemporaryliquidityfacilityforthesettlementprocess.

Differentfromtheequitymarketguaranteeaccount,thedebtsecuritiesmarketguaranteeaccountisactivatedandputintotheTakasbankcashsettlementpoolaccountincasesofdefault.Ifadefaultoccursatthedebtsecuritiesmarketsettlementtransactionsafter16:30atthesettlementday(T+0forsame-daysettlement),thisguaranteeaccountisactivatedandputintotheTakasbankcashsettlementpoolaccount.

TherealsoexistsaGuaranteeFundforBorsaIstanbulDerivativesMarketwhichismanagedbyTakasbank.Thisguaranteefundismadeupofmembercontributions.ClearingmembersmustcontributetoGuaranteeFundwithcashandnon-cashcollaterals.ThedepositedguaranteefundcontributionamountofaMembercannotbelessthanthefixedcontributionamount.Thisamountisreviewedatleastonceayearbytakingthedevelopmentsinthemarket,nationalandinternationaleconomyintoconsideration;anditmaybechangedifdeemednecessary.Thevariablecontributionamountsarecomposedofsequentialbracketswhichhavelowerandupperlimits.TheGuaranteeFundcontributionamountobligationsarecalculatedonthelastbusinessdayofeachmonthandupdatedasofthefirstbusinessdayofthefollowingmonth.

TheunderlyingassetsforfuturesandoptionscontractstradedatVIOPare:

EquityTurkiyeGarantiBankasiAS(GARAN)TurkiyeIsBankasiAS(ISCTR)AkbankTAS(AKBNK)TurkiyeVakiflarBankasiTAO(VAKBNK)YapiveKrediBankasiAS(YKBNK)TurkHavaYollariAO(THYAO)EregliDemirveCelikFabrikalariTAS(EREGL)H.O.SabanciHoldingAS(SAHOL)TurkcellIetisimHizmetleriAS(TCELL)TuprasTurkiyePetrolRafinerileriAS(TUPRS)

IndexBIST30Index

CurrencyUSD / TRYEUR / TRYEUR / USD

CommodityCottonWheat

Precious MetalsFineGold(TRY/gram)FineGold(USD/ounce) EnergyBaseLoadElectricity

2120

Derivatives Market (VIOP)

VIOPisdesignedasamarketfortradingfuturesandoptionscontractsbasedoneconomicorfinancialindicatorsandcapitalmarketsinstruments,aswellasotherderivativeproductsinanelectronicenvironment.

Markets and Products

AllfutureandoptioncontractsinTurkeyshallbetradedonasingleplatformundertheumbrellaofVIOP.

TradescanbeexecutedontheMainBoard,NegotiatedDealsBoardandontheAdvertisingBoardintheExchange.

Contract Codes

FutureContractCodes:Forfuturescontracts,contractcodesarecreatedinawaytoincludeinformationonthecontracttype,underlyingasset,maturitydateandwhetherthecontractsizeisstandardornot.Example:F_XU0300614S0 OptionContractCodes:Foroptioncontracts,contractcodesarecreatedinawaytoincludeinformationonthecontracttype,underlyingasset,optionstyle,maturitydate,C/P,strikepriceandwhetherthecontractsizeisstandardornot.Example:O_XU030E0614P96.000S0

Futures and options contracts traded atVIOP are listed below:

*EquityIndexFutures

BIST30IndexFutures(CashSettlement,T+1)

*EquityIndexOptions

BIST30IndexOptions(European,CashSettlement,T+1)

*EquityFutures

SingleStockFutures(PhysicalSettlement,T+3)

*EquityOptions

SingleStockOptions(European,PhysicalSettlement,T+3)

*CurrencyFutures

USDTRYFutures(CashSettlement,T+1)

EURTRYFutures(CashSettlement,T+1)

EUR/USDCurrencyFutures(CashSettlement,T+1)

*CurrencyOptions

USDTRYOptions(European,CashSettlement,T+1)

*PreciousMetalsFutures

GoldFutures(CashSettlement,T+1)

USD/OunceGoldFutures(CashSettlement,T+1)

*CommodityFutures

AegeanCottonFutures(CashSettlement,T+1)

AnatolianRedWheatFutures(CashSettlement,T+1)

*PowerFutures

Base-LoadElectricityFutures(CashSettlement,T+1)

Derivatives Market Key Statistics

Average Open Positions

BIST30 Futures Contracts Currency Futures Contracts Precious Metals Contracts

2013 190,760 188,130 9,126

2014 273,201 223,638 6,617

Monthly Average Trade Value (US $)

BIST30 Futures Contracts Currency Futures Contracts Precious Metals Contracts

2013 17,131,506,608 988,830,988 208,865,445

2014 13,271,404,508 1,468,451,105 105,857,028

Maximum Daily Trade Value (US $) 1,784,907,264

Maximum Contract Based Open Position BIST30 Futures 345,889

USDTRY Futures 221,476

2322 2322

UnderlyingSecurities BIST30Index

ContractSize Underlyingsecurityisthe1/1000ofindexvalues.Contractsizeis100underlyingsecurities.

TickSize TRY0.025

ContractMonths 3consecutiveevenmonthsandDecember

DailyPriceLimit Pricesmaynotexceed+/-15%ofpreviousday’ssettlementprice.

UnderlyingSecurities BIST30PriceIndex


TickSize TRY0.01

ExerciseStyle European,i.e.exercisableonlyontheexpiryday.

ContractMonths 3consecutiveevenmonths

UnderlyingSecurities BIST30Index


TickSize TRY0.01



Underlying BIST30Index

ContractSize Underlyingsecurityisthe1/1000ofindexvalues.Contractsizeis1underlyingsecurity.

TickSize TRY0.01



BIST 30 Index Futures Contract Specifications

BIST 30 Index Options Contract Specifications

Mini BIST 30 Index Options Contract Specifications

ExpiryDate:Lastbusinessdayofthecontractmonth.

LastTradingDay:Lastbusinessdayofthecontractmonth.

Settlement:CashSettlement

2524

What do I need to do to trade at VIOP?

InordertostarttradingatVIOP,youmustopenabrokerageaccount.Informationaboutourmemberscanbefoundonhttp://borsaistanbul.com/en/members/members-list,fortheinformationrelatedtoaccountopeningyoucanapplytotheintermediaryinstitutionyouwanttoworkwith.

How can I view market data and current quotes for VIOP products?

VIOPdataisavailableontheBorsaIstanbulwebsitewiththefollowinglink:http://borsaistanbul.com/en/data/data/futures-and-options-market-dataAndalsoitcanbereachedviadatavendorsusingtheinformationprovidedbelow;

Name Web Link

Bloomberg •BIST30Futures:XU030IndexCT;•BIST30Options:XU030XIndexOMON•CurrencyFutures:A1ACurncyCT(A2A,B2A)•GoldFutures:XLAComdty(XLTA)•For10listedsinglestockoptionsafterselectingunderlyingtypeOMONEx:{GARANTIEquityOMON<GO>}

Reuters •0#ISTOPT:forallthelistedoptions,•0#ISTFUT:forallthelistedfuturecontracts•ForBIST30IndexOptionstype0#XU030*.IS

UnderlyingSecurities GARAN,ISCTR,AKBNK,VAKBNK,YKBNK,THYAO,EREGL,SAHOL,TCELL,TUPRS.

ContractSize 100sharespercontract.

TickSize TRY0.01perunderlyingshare

ContractMonths 2consecutiveevenmonthsandDecember.


Single Stock Futures Contract Specifications

Single Stock Options Contract Specifications

UnderlyingSecurities GARAN,ISCTR,AKBNK,VAKBNK,YKBNK,THYAO,EREGL,SAHOL,TCELL,TUPRS.

ContractSize 100sharespercontract.

TickSize TRY0.01perunderlyingshare


ContractMonths 2consecutiveevenmonthsandDecember.



Settlement:Physicaldeliveryoftheunderlyingsecurity.

2726

UnderlyingSecurities USD/TRY

ContractSize 1,000USD

TickSize TRY0.0005perUSD

ContractMonths 3consecutiveevenmonthsandDecember

DailyPrice LimitPricesmaynotexceed+/-10%ofpreviousday’ssettlementprice.

Underlying EUR/USDParity

ContractSize 1,000EUR

TickSize USD0.0001perEUR

ContractMonths 2quarterlymonthsandDecember


Underlying FineGold

ContractSize 1ounceofgold

TickSize USD0.05perounce



UnderlyingSecurities USD/TRY

ContractSize 1,000USD

TickSize TRY0.1perUSD

ContractMonths European;i.e.exercisableonlyontheexpiryday.

DailyPrice 2consecutivemonthsincludingcurrentmonth.

USD/TRY Futures Contract Specifications EUR/USD Futures Contract Specifications s

USD/Ounce Gold Futures Contract Specifications USD/TRY Options Contract Specifications


LastTrading:DayLastbusinessdayofthecontractmonth.

Settlement:Cashsettlement



Settlement:Cashsettlement

ForthespecificationsoftheotherVIOPcontractspleaseseeourwebsite:

http://borsaistanbul.com/en/products-and-markets/products/futures

http://borsaistanbul.com/en/products-and-markets/products/options

Trading Hours

Normal Session Hours on Contract Basis

Contracts Normal Session Hours Lunch Break

SingleStockFuturesandOptionsContracts 09:10-17:40 12:30-13:55

IndexFuturesandOptionsContracts 09:10-17:45 12:30-13:55

CurrencyFuturesandOptionsContracts 09:10-17:45 N/A

GoldandElectricityFuturesContracts 09:10-17:45 N/A

CommodityFuturesContracts 09:10-17:45 12:30-13:55

2928

Trading Fee

Afeebasedonthetradingdonebythemembersshallbecollected.

· Forthecontractswrittenonequityindex,thetradingfeeis0.004%ofthepremiumvalueforoptioncontractsandthe

tradedvalueforfuturescontractsbybothpartiesofthetrading.

· Forthecontractsotherthanequityindexcontracts,thetradingfeeis0.003%ofthepremiumvalueforoptioncontracts

andthetradedvalueforfuturescontractsbybothpartiesofthetrading.

Risk Management and Margining

TakasbankconductsriskandcollateralmanagementintheVİOP.Portfolio-basedmarginingmethodisusedforeachaccount

andTakasbankemploys“StandardPortfolioAnalysisofRisk-SPAN”algorithmformarginingonportfoliobasis.SPANisarisk

measurementandmarginingmethodology,whichanalysestheriskthattheportfoliomaybeexposedtothepredefined16

scenariosandcalculatestherequiredmarginamountaspreciselyaspossible.ByusingSPAN,themarginamountiscalculated

onportfoliobasisinconsiderationofthescanriskvalue,intra-commodity(inter-month)spreadcharge,deliverymonthcharge

andinter-commodityspreadcredit.Therefore,theamountofmargincallrequestedfromthememberisestimatedinsucha

wayinordertoguaranteethesettlementprocessofeachday.

Takasbankcalculatesthe“marginrequirement”byusingtheopeninterestfortheaccountsandlatestSPANparameterfile

disclosedbyTakasbank.Theminimumlevelthatmarginrequirementmaydropasaresultoflossesincurredinthemarketor

depreciationinthevalueofnon-cashcollateraliscalled“maintenancemargin”level.Whenthecollateralamountfallsbelow

themaintenancelevel,amargincallshallbemadebysendingmessagesandreportingatmemberterminals/screensprovided

byTakasbank.“Maintenancelevel”isapercentofthemarginrequirement.“Profit/losscalculations”ofthepositionsresulting

fromtransactionsareperformedbyTakasbankandreportedtothemembersthroughTakasbankterminals.

RegardingtheMarketriskmanagement,riskrateisgeneratedbydividingthe“maintenancelevelmarginamountcalculated

inaccordancewiththeTakasbankMarketCCPProcedure”tothe“sumoftotalcollateralandtemporaryprofit/lossamount”.

Iftheriskrateismorethan100%,theaccountshallbedefinedas“risky”.RisklevelisinformedbyTakasbanktorelevant

memberswhentheyaregettingclosertothatlevelandguidethemtomakethemrisk-reducingtransactions.Regardingthe

risky-accountpre-orderriskmanagement,orderenteredfromriskytradingaccountisallowedtobeenteredinthesystemwith

adifferentstatuscodeandnotsenttoVİOPorderbookformatching,andinstead,issenttoTakasbanktocheckwhetheritis

ariskreducingorderornot.Ordersthatincreaseneithertheriskratenorthemarginrequirementareacceptedtothetrading

systemsubjecttoTakasbank’sapproval,andifotherwise,rejected.

3130

Clearing and Settlement at VIOP

Takasbankisthecentralclearinghouseresponsiblefor

clearingandsettlementoftransactionsexecutedinBorsa

İstanbulandderivativestransactionsexecutedatBorsa

IstanbulVİOParealsocentrallyclearedandsettledby

Takasbank.Asof3March2014,Takasbankbegantoprovide

centralcounterparty(CCP)servicesfortheMarket.

Takasbankisthecentralcounterpartywiththe“open-

offermethod”forthetransactionsexecutedintheMarket.

Itundertakestocompletethesettlementandclearing

operationsbyactingasabuyeragainstthesellerandas

aselleragainstthebuyer.Intheopen-offermethod,the

liabilityofTakasbankagainstthepartiesofthetransaction

startsatthemomentwhenthebuyandsellorders

arematchedatVİOPandendswiththecompletionof

theclearingandsettlement.Takasbank,asthecentral

counterparty,assumestheclearingandsettlement

obligationsarisingfromthetransactionsconductedinthe

Marketbythemembersinaccordancewiththeprinciples

andproceduresspecifiedintherelatedlegislation.The

risksthatTakasbankisexposedto,arisingfromservices

thatTakasbankprovidesasaCCParesafeguardedthrough

collaterals,guaranteefundandcapitalamountallocated

fromTakasbank’sequity.

IntheMarket,thecustomerpositionsandcollateralsare

monitoredseparatelyfromtheMember’sownportfolioand

collaterals.“Mark-to-market”valuationofcollateralandrisk

managementisaccomplishedbyTakasbank.Cashin

TurkishLira(TL),convertibleforeigncurrency,government

domesticdebtsecurities,stocksincludedinBIST30Index,

mutualfundparticipationcertificates,leasecertificates

issuedbyAssetLeasingCompany(SPV)ofTreasuryofthe

RepublicofTurkeyandgoldinthestandardtradedonthe

Exchangesareacceptedascollateral.

IfanewpositionisopenedintheMarketthen,atleast50%

ofthemarginrequirementshouldcompriseofcashcollateral

denominatedinTL.Withregardtonon-cashcollaterals,

allnon-cashcollateralsaresubjecttohaircutsdetermined

byTakasbankaccordingtothemarketriskoftherelated

collaterals.“Mark-to-market”processisperformeddailyon

relatedaccountbasis.Thelossesthatcanariseduetothe

transactionsinthemarketareautomaticallydeductedon

thesameday(T+0)fromthecashcollateralsintherelated

accounts.

Amargincallismadeforthememberwhohascash

collateraldeficitorwhosecollateralamountfellbelowthe

maintenancemarginlevel.Ateachmark-to-marketbatch;if

thebalanceofanyaccountexceedsthemarginrequirement

amount,thenthebalanceexceedingtherequiredamount

canbewithdrawnbythemember.Themembersarerequired

tofulfilltheirmargincallobligationsat15:00ofthenext

businessdayatthelatest.Theprofitsaretransferred

totheaccountsonT+1daytill15:00.Ifamemberhas

accountswithprofitreceivablesatthesametimewith

otheraccountsthathavemargincallobligations,profit

distributionisblockedintheamountequaltotherelated

margincallamountandprofitreceivablesarenotpaiduntil

theobligationisfulfilledcompletely.Thememberisalso

notallowedtowithdrawcollateralfromthesub-account

thatissubjecttothemargincall.Themembernotfulfilling

itsmargincallobligationoftherelatedaccountuntil15:00

onT+1dayisdeemedtobeindefaultwithoutrequiringany

furthernotification.

3332

Clearing Membership and Account Types

Therearetwotypesofclearingmembership:directclearing

membershipandgeneralclearingmembership.

Directclearingmembersareauthorizedtoperformonlythe

clearingandsettlementtransactionsofthemselvesand/or

oftheirclients.

Generalclearingmembersareauthorizedtoperformthe

clearingandsettlementtransactionsofothertrading

institutionsinadditiontotheclearingandsettlement

transactionsofthemselvesand/oroftheirclients.

Thegeneralanddirectclearingmembershipclassification

ismadebyconsideringtheamountofequitycapitalofthe

member,theadequacyofitsinternalsystemsandtechnical

infrastructureaswellasotherinternalrating,financial

analysisandintelligencestudiescarriedoutbyTakasbank.

Themembershipstatusofthegeneralanddirectclearing

membersmaybechangedbypursuingtheircompliancewith

theconditionssetforthbyTakasbank.Inthiscontext,a

directclearingmembermaybeacceptedlaterasageneral

clearingmemberorageneralclearingmembermayalsobe

acceptedlaterasadirectclearingmember.

Threedifferentkindsofaccountscanbeopenedwith

Takasbank;a“TradingAccount”,a“Depositoryaccount”and

a“TradingandDepositoryaccount”.

TradingAccountisanaccountthatthebuyingandselling

transactionsintheMarketcanbeexecutedbutnoposition

andcollateralmonitoringcanbecarriedout;andtheorders

andtransactionsarefollowedonthistypeofaccounts.A

tradingaccountopenedwithTakasbankcanonlybeeligible

toexecutetransactionintheMarketupontheassociationof

thisaccountwithadepositoryaccountandtheapprovalof

thisoperationbytheMembertowhomsuchdepository

accountbelongs.Atradingaccountcanbeassociatedwith

onlyonedepositoryaccount.

Depositoryaccountisanaccountthatthepositions,

therisksrelatedtothepositionsandthecollateralscan

bemonitoredbutnotransactioncanbeconducted.A

depositoryaccountcanbeassociatedwithmorethanone

tradingaccount.

TradingandDepositoryaccountisanaccountwherethe

transactionscanbeconductedandthepositionsandthe

risksrelatedtosuchpositionsandcollateralsarealsokept

andmonitored.

AccountsopenedwithTakasbankmighthavefourdifferent

types;“CustomerAccount”,“MarketMakerAccount”,

“Global(Multiple-Position)Account”and“Portfolio

Account”.CustomerAccountisanaccountwherethe

transactionsexecutedbytheMemberwithitscustomers

aremonitored.PortfolioAccount,ontheotherhand,isan

accountwherethetransactionsexecutedbytheMember

foritsownportfolioaremonitored.IntheMarket,the

customerpositionsandcollateralsaremonitoredseparately

fromtheMember’sownportfolioandcollaterals.The

positionsandcollateralsbelongingtotheMember’sown

portfolioaremonitoredinaportfolioaccounttobeopened

exclusivelyforthemembersandinalinkedtradingand

collateralaccount.Eachmemberisrequiredtohavea

portfolioaccountandonlyoneportfolioaccountcanbe

openedatmost.Ontheotherhand,amongthosemembers

whoarequalifiedasamarketmakerinaccordancewiththe

Exchangelegislationcanalsoopenamarketmakeraccount.

MarketMakerAccountisanaccountwherethemarket

makersmonitorthetransactionstheyconductonlyfor

theirownportfolioinaccordancewiththemarketmaking

operations.

ItisessentialthattheMembersmonitorthecustomer

positionsonsingle-positionaccountstobeopenedin

Takasbanksystem.Ontheotherhand,global(multiple-

position)accountscanbeopenedastobelimitedto

thetransactionsconductedwithinthescopeofthe

portfoliomanagementactivities.Theprinciplesrelating

totheopeningoftheaccountsshallbestipulatedinthe

procedure.Thecollateralsrelatedtothecustomerpositions

monitoredthroughsingle-positionaccountscanonlybe

usedtoliquidateobligationsoftherespectivecustomer.

Openingofthemultiple-positionaccountscanberestricted

onamemberbasis.Thecollateralobligationsarisingasa

resultofthetransactionsconductedoverthemultiple-

positionaccountsmustbecoveredbycollateralsowned

bytheMemberoronwhichtheMemberhasthepowerof

disposition.CollateralsdepositedbytheMembertothe

collateralaccountsofsuchanaturethatareassociated

withthemultiple-positionaccountsbyTakasbankshallbe

deemedtobelongtotheMember.

Precious Metals and Diamond Market

PreciousMetalsandDiamondMarketbecamethenewest

marketofBorsaİstanbul,afterthemergerbetween

İstanbulMenkulKıymetlerBorsası(İMKB)andIstanbulGold

Exchange(IGE).

IGEofficiallybeganitsoperationonJuly26,1995.The

exchangewastheprimarycommoditiesandpreciousmetals

exchangeinTurkeyandthemainauthoritytoregister

goldimports.Itusedtocanalizegoldandotherprecious

metalssuchassilver,platinumandpalladiumandprecious

stonestofinancialsystem,developingphysicallybased

investmentvehiclesandprovideinternationalintegration

oftheseinstrumentsthroughsectorsinTurkey.Afterits

establishment,localgoldpricesbecameinconformitywith

internationalprices,importedgoldbarswereenforcedto

meetgenerallyacceptedglobalstandardsandfineness

atthesametimethesystemgainedamoretransparent

structure.

AmendmentsmadeinDecember1998totheDecreeNo.32

concerningtheProtectionoftheValueofTurkishCurrency

madetradingofsilverandplatinumpossibleattheIGE

besidesgold.

Non-standardgoldtransactionswerelaunchedin

October1999.Thisenabledscrapgoldtradinginasecure

environmentbyeliminatingcounter-partyrisk.Italso

removedassayingconcernsregardingnon-standardbullion.

PreciousMetalsLendingMarketstarteditsoperationson

March24,2000forthepurposeofbringingsupplyand

demandintoanorganizedmarket,loweringtheproduction

costsofthejewelrysectorandsecuritizationofgold.

InMarch2008tradingrulesandprinciplesofdomestically

producedpreciousmetalsandnonstandardpreciousmetals

weredeterminedinaccordancewiththeCommuniqué

ConcerningPreciousMetalsStandardsandRefineriesand

StandardsofPreciousMetalsdated18/11/2006.

ThenewlyopenedDiamondandPreciousStoneMarketwas

launchedonApril4,2011toprovidediamondandprecious

stonestradinginanorganizedandstandardizedmarket

possibleinTurkey.Ithas122membersconsistingof68

jewellerysectorparticipantsand54IGEmembers.

By17thNovember2011,palladiumwasannouncedas

preciousmetalregardingtotheamendmentsmadetothe

DecreeNo.32concerningtheProtectionoftheValueof

TurkishCurrency.

Besidespreciousmetals,buyingandsellingtransactionsof

goldbasedExchangeTradedFundsandotherfundsaredone

inIGE’sPreciousMetalsMarketandtheirpreciousmetalsare

storedintheExchangevaultphysically.

Nettingsystemforthecollateralsofthesamecustomer

inthesamevaluedatehasbeenputintoeffectasto

thedemandsofthemembers.Thevaluedatesofthe

transactionshavebeenextendedfromT+0uptoT+90

days.Thecollateralleverageofthetransactionshavebeen

determinedas25timesforT+0,20timesforT+1uptoT+5,

12timesforT+6uptoT+9,and10timesforT+90value

dates.

Trading Hours

Preciousmetalstrading16:00–16:00(startingfromT+0

endingatT+1)

3534

3736

Sub markets

ThePreciousMetalsandDiamondMarkethasthreetypes

ofsub-market:PreciousMetalsMarketincludesthespot

andphysicaltradeofstandardandnon-standardgold,

silver,platinumandpalladiummetals.PreciousMetal

LendingMarketprovidelendingandcertificatetransactions

ofdefinedpreciousmetals.DiamondandPreciousStone

Marketprovidestransactionsofdiamondandprecious

stones.

International Membership

TurkeywasadmittedtoKimberleyProcessCertification

SchemeonAugust14,2007andİstanbulGoldExchangewas

authorizedtoconductimportandexportofroughdiamonds

withintheframeworkofKimberleyProcessCertification

Scheme.Now,Borsaİstanbul(PreciousMetalsandDiamond

Market)becameanauthorizedinstitutionfortheScheme.

•İstanbulGoldExchangewasadmittedtomembershipof

WorldFederationofDiamondBourses(WFDB)onMay13,

2008.AfterrestructuringBorsaIstanbulbecameamember

ofWFDB.

• İstanbulGoldExchangewasadmittedtoassociate

membershipofLondonBullionMarket(LBMA)onMarch

2008.AfterthemergerofİMKBandIstanbulGoldExchange,

Borsaİstanbulmaintainedthemembership.The legislation

Thelegislationofpreciousmetalsanddiamondtradeand

PreciousMetalsandDiamondMarketisbelow.

•GeneralRegulationConcerningtheFoundationand

OperationPrinciplesofPreciousMetalsExchange

•RegulationConcerningthePrinciplesofPreciousMetals

Exchange’sIntermediaryInstitutionsandFoundationof

PreciousMetalsExchangeBrokerageHouses

•TheRegulationofTheIstanbulGoldExchange

•TheRegulationofThePreciousMetalsLendingMarket

•TheRegulationofDiamondandPreciousStoneMarket

•TheRegulationofPrincipalandRulesonDisposing

TheRegulationofPrincipalandRulesonDisposing

CommoditiesandRealPropertyOwnedbyBankingSector

basedonmarkettransactionsNationalandInternational

Refineriesareauthorizedtotradeitsbars,bullionsand

granulesofgold,silver,platinumandpalladiuminthe

PreciousMetalsMarket.

PreciousMetalsMarket

PreciousMetalsLendingMarket

DiamondandPreciousStone

Market

Precious Metals And Diamond Market

3938

Data Dissemination in Borsa İstanbul Markets

Inadditiontobasicdata,marketdepthdataare

disseminatedbydatavendorsauthorizedbyBorsaİstanbul,

onarealtimeand/ordelayedbasisviadatadissemination

terminals,Internet(includingBorsaİstanbulmembers’

websites),TV-Teletext,TVtickers,WAPchannelsand

othertransmissionmeans.Inlinewithtechnological

developments,transmissionwasimprovedanddiversified

andmoreinvestorsaregiventheopportunitytoaccessdata

disseminatedalongthesepathways.Thelistofthedata

vendorsisavailableontheBorsaİstanbulwebsiteathttp://

www.borsaistanbul.com.Marketdepthdatadissemination

enablesinvestorstoaccessvariousdataontheBorsa

İstanbulmarketssimultaneouslyandinatransparent

environment.Marketdepthdatadisseminationisonly

availablethroughauthorizeddatavendorsandthroughtheir

dedicatedterminals.

Statisticalinformationaswellascorporatenewsarealso

displayedontheBorsaİstanbulwebsite.Borsaİstanbul

publishesdailybulletins(alsoavailableinEnglish),aswell

aspromotionalpublicationsaboutBorsaİstanbul.Allsuch

documentsareavailableontheBorsaİstanbulwebsiteat

www.borsaistanbul.com

Public Disclosure Platform

WithintheframeworkofCMB’s“CommuniquéRegardingPrinciplesofSubmittingElectronicallySignedInformation,DocumentsandNotificationstothePublicDisclosurePlatform”,allinformationanddocumentstobepubliclydisclosedmustbesenttothePublicDisclosurePlatform(PDP)whichisasystemusinginternetandelectronicsignaturetechnologies.TheplatformwasdevelopedcollectivelybytheCMB,BorsaİstanbulandtheScientificandTechnologicalResearchCouncilofTurkeyandthesystemisoperatedandmanagedbyMerkeziKayıtKuruluşu(CentralRegistryAgency)

Thesystemisdesignedtoalloweveryonetohaveaccesstoaccurate,timely,fairandcompleteinformationaboutthetradedcompaniesovertheinternetsimultaneously.Furthermore,PDPservesasanelectronicarchivewhichallowseasyaccesstohistoricalinformation.AllnotificationssenttoPDPcanbereachedfreeofchargefromPDPwebsiteatwww.kap.gov.tr

Alllistedcompaniesarerequiredtodisclosetheirfinancialstatements,explanatorynotes,materialeventsandallotherdisclosuresviaPublicDisclosurePlatformonInternetwithe-signatureoftheirofficiallyauthorizedusers.InadditiontolistedcompaniesandETFs,FreeTradePlatformcompanies,MutualFunds,PensionMutualFundsandPensionMutualFunds,investmentfirmsandinvestmenttrustsalsohavetosubmitnotificationstoPDP.

Independentauditcompanies,ontheotherhand,sendtheelectronicallysignedfinancialstatementsforwhichindependentauditisrequired,totherelevantcompanyelectronicallyinordertobeannouncedtothepublic.Also,theannouncementsoftheregulatoryauthoritiessuchasBorsaİstanbul,CMB,TakasbankandMKKaredisclosedthroughthisplatform.Thesystemcoversover750companies,17ETFs,240pensionmutualfundsand3000usersthatareauthorizedtosubmitinformationtothesystemalloverTurkey.

Thesystemdisseminatesdataonwww.kap.gov.tr.Also16datavendorsand17sub-vendors(websites,etc.)disseminatePDP

notificationsonarealtimebasis.BorsaİstanbulcompletedthefirstphaseoftheEnglishversionofthePDP.Inthisphase,only

balance-sheetsandincomestatementsarepublishedinEnglish.Fortherestofthenotifications,thesubjectpartisinEnglish

andthecontentinTurkish.Also,notificationqueryisavailableforbalance-sheetsandincomestatementsinEnglishinthePDP

Englishversionpage.PDP’sEnglishversionmaybeaccessedbyclicking“English”atPDPwebsite.

International Standing of Borsa İstanbul Markets

BorsaİstanbulEquityMarketisamongthetopsevenemergingmarketsintermsoftradedvalueandDebtSecuritiesMarketis

amongthetopsevenglobalmarkets,asofend2013.Borsaİstanbulcontinuestobeawell-respectedmarketduetoitsliquidity

andfuturepotentialinthecontextofoveralleconomicgrowthofthecountry.Thenewregulatoryframeworkthathasbeen

passedasofDecember30,2012,acompleteoverhaulofthirtyyearsoldcapitalmarketregulatorysystem,setsthestagefora

morecompetitive,efficientandtransparentcapitalmarketssystemforthefuture.

4140

1. Value of Share Trading in Emerging Markets (end 2013, Year to Date figures, Mn USD)

Source:WFE

2. Value of Bonds Trading (end 2013 Year to Date figures, Mn USD)

Source:WFE *NASDAQOMXNordicExchangesincludeCopenhagen,Helsinki,Iceland,Stockholm,Tallinn,RigaandVilniusStockExchanges.

Borsaİstanbulistheworld’s7thlargestbondsmarketintermsoftradedvalueasofend2013.

ShenzhenSE

ShanghaiSE

KoreaExchange

BM&FBOVESPA

TaiwanSECorp.

NationalSEIndia

Borsa İstanbul

TheSEofThailand

JohannesburgSE

MexicanExchange

BursaMalaysia

IndonesiaSE

BSEIndia

TelAvivSE

PhillipinesSE

SantiagoSE

ColombiaSE

BudapestSE

BMESpanishExchanges

NASDAQOMXNordicExc*

JohannesburgSE

KoreaExchange

ColombiaSE

OsloBØrs

Borsa İstanbul

MoscowExchange

TelAvivSE

GreTaiSecuritiesMarket

ShanghaiSE

SantiagoSE

SIXSwissExchange

NationalSEIndia

IrishSE

BuenosAiresSE

DuetscheBörse

ShenzhenSE

BSEIndia

NYSEEuronext(Europe)

3,858,509

3,731,129

1,284,599

810,596

623,950

478,959

419,362

376,024

343,295

177,356

147,873

115,972

84,549

53,703

46,670

43,980

25,943

10,429

8,499,322

2,536,905

2,123,266

1,207,841

935,757

675,201

521,137

434,216

282,466

267,114

199,476

194,429

181,710

147,187

62,231

49,166

31,451

31,193

28,241

13,516

Indices2

4342

Borsa İstanbul Equity Indices

Borsaİstanbulequityindiceshavebeencreatedtomeasurejoint

performancesofgroupofequitiestradedontheBorsaİstanbul.

Untiltheendof1996,Borsaİstanbulusedtocomputeonlythe

BIST100,FinancialsandIndustrialspriceindices.Asof1997,Borsa

İstanbulbegantocalculatesectorandsub-sectorindicesonthe

basisofpricesandtotalreturn.

Borsaİstanbulpriceindicesarecomputedandpublishedthroughout

thetradingsessionwhilethereturnindicesarecalculatedand

publishedatthecloseofthesessiononly.

BIST100IndexisusedasthemainindicatoroftheBorsaİstanbul

Equitymarket.

AccordingtotheclassificationmadebytheCMBin2010and

collectingequitiestradedonBorsaİstanbulunder3groups;A,Band

C.Borsaİstanbulequityindicesarecomposedof“A”and“B”listed

equities.“C”listedequitiesthataretradedonWatchlistCompanies

Marketarenotincludedinequityindices.Someoftheequityindices

areexplainedonthefollowingpages:

BIST Equity Indices Explanations

BIST 100

Theindexiscomposedof100companiesselectedamongstthecompaniestradedonNationalMarketandREITandVentureCapitalInvestmentTrustcompaniestradedonCollectiveProductsMarket,inaccordancewiththepredeterminedcriteriasetbyBorsaİstanbul.BIST100IndexincludestheBIST50andBIST30Indexconstituentcompanies.

BIST100CappedTheindexisthecappedversionofBIST100Indexwherethemaximumweightofasingleconstituentislimitedto10percent.

BIST 50Theindexiscomposedof50companiesselectedamongstthecompaniestradedonNationalMarketandREITandVentureCapitalInvestmentTrustcompaniestradedonCollectiveProductsMarket,inaccordancewiththepredeterminedcriteriasetbyBorsaİstanbul.BIST50IndexincludestheBIST30Indexconstituentcompanies.

BIST 30Theindexiscomposedof30companiesselectedamongstthecompaniestradedonNationalMarketandREITandVentureCapitalInvestmentTrustcompaniestradedonCollectiveProductsMarket,inaccordancewiththepredeterminedcriteriasetbyBorsaİstanbul.

BIST30CappedTheindexisthecappedversionofBIST30Indexwherethemaximumweightofasingleconstituentislimitedto10percent.

BIST10BanksTheindexiscomposedof10bankstradedonNationalMarketwiththepredeterminedcriteriasetbyBorsaİstanbul.

BIST100-30TheindexiscomposedofBIST100indexconstituentcompaniesexcepttheconstituentsoftheBIST30index(theindexiscalculatedfor70companies).

BISTDividendTheindexiscomposedofequitiesofthecompaniestradedonNationalMarket,SecondNationalMarketandREITsandVentureCapitalInvestmentTrustcompaniestradedonCollectiveProductsMarketandhavingdistributedcashdividendsineachoftheir3previousfinancialyears.

BISTDividend25Theindexiscomposedof25equitiesincludedintheBISTDividendIndexthatareplacedinthefirst2/3sliceintherankingindescendingorderaccordingtodividendyieldasofthereviewdayandhavethehighestfreefloatmarketvalue.

BISTCorporateGovernance

TheindexiscomposedofthecompaniestradedontheBorsaİstanbulmarketshavingthenecessarycorporategovernanceratinggradeswhicharedeterminedaccordingtothe“CorporateGovernancePrinciples”issuedbytheCMB.Foracompanytobeincludedintheindex,theminimumcorporategovernanceratinggradeissevenoutoften,additionallytheminimumgradeissixandahalfoutoftenforeachmainsection.

BISTIPO

TheindexiscomposedofequitiesofthecompaniesthatarepubliclyofferedandstartedtobetradedonNationalMarket,SecondNationalMarketandREITandVentureCapitalInvestmentTrustcompaniestradedonCollectiveProductsMarket.Theconstituentsoftheindexarecappedat20percentofthetotalweightandareexcludedfromtheindexaftertwoyears.

BISTAllShares TheindexiscomposedofallcompaniestradedonBorsaİstanbulMarketsexceptInvestmentTrusts.

BISTAll-100TheindexiscomposedoftheBISTAllSharesIndexconstituentcompaniesexcepttheconstituentsoftheBIST100.

BISTNational TheindexiscomposedofcompaniestradedontheNationalMarket.

BISTSMEIndustrial

TheindexconsistsofthestocksofindustrialcompaniestradedintheNationalMarket,theSecondNationalMarketandtheEmergingCompaniesMarketandwhosatisfyatleastoneoftheannualnetsalesorfinancialbalancesheetsizecriteriaappearingintheSMEdefinitionoftherelatedordinanceoftheMinistryofScience,IndustryandTechnology.

4544

Sector and Sub-sector Indices

BISTIndustrialsBISTFood,BeverageBISTTextile,LeatherBISTWood,Paper,PrintingBISTChemical,Petroleum,PlasticBISTNon-MetalMineralProductsBISTBasicMetalBISTMetalProducts,MachineryBISTMining

Sectorandsub-sectorindicesarecomposedofthecompaniestradedonBorsaİstanbulMarketsexceptInvestmentTrusts.

BISTServicesBISTElectricityBISTTransportationBISTTourismBISTWholesaleandRetailTradeBISTTelecommunicationBISTSportsBISTConstruction


BISTFinancialsBISTBanksBISTInsuranceBISTLeasing,FactoringBISTHoldingandInvestmentBISTRealEst.Inv.TrustsBISTBrokerageHouses


BISTTechnologyBISTInformationTechnology


BISTInvestmentTrusts TheindexiscomposedofallinvestmenttrustequitiestradedontheCollectiveProductsMarket.

BISTSecondNational TheindexiscomposedofcompaniestradedontheSecondNationalMarket.

BISTCityIndicesAdana,Ankara,Antalya,Balıkesir,Bursa,Denizli,İstanbul,İzmir,Kayseri,Kocaeli,Konya,Tekirdağ

TheindicesarecomposedofcompaniestradedonBorsaİstanbulmarketscategorizedbythecitywherethemainproduction/serviceortheregisteredofficeislocated.Companiesthatoperateinthefinancialsectorwiththeexceptionofholdingsandcompaniesthatoperateintheretailsectorarenotincluded.

4746

StartingfromJanuary1997,Borsaİstanbuldroppedtwozerosfromtheequityindices(i.e.BIST100,FinancialsandIndustrials)

forsimplificationpurposes.Withtheimplementation,BIST100indexvaluepriortoandincludingDecember27,1996was

dividedby100tohaveaJanuary1986basevalueof1(one)insteadoftheprevious100.

BorsaİstanbulalsocomputesandmaintainsallequityindicesonUSdollarandonEurobasis.

ApartfromtheIndicesabove,BorsaİstanbulprovidesanIndexcalculationanddistributionservice.KatılımIndex,launchedon

January6,2011,istheoutcomeofsuchaserviceprovidedbytherequestofBizimMenkulDegerler.

Borsa İstanbul Government Debt Securities Indices

BorsaİstanbulGovernmentDebtSecurities(GDS)indicesareformulatedinordertofulfilltherequirementsofmembersand

investorsaswellasindividualsandinstitutionseagertofollowandanalyzethechangesinpricesandyieldsoffixed-income

securities,throughsimpleandcomprehensiveindicators.Inaddition,BorsaİstanbulGDSIndicesaimtoprovidethebasisfor

comparisonwithothermarketsandafoundationfortechnicalstudies.GDSindicesaredividedintotwomaingroupsnamely

Price/PerformanceIndicesandPortfolioPerformanceIndices.

Multi-National Indices

Greece-Turkey 30 Index (GT-30)

GreeceandTurkey30Index(GT-30)isacustomizedindex,createdasaresultofthecooperationbetweenBorsaİstanbul,AthensExchange(ATHEX)andSTOXXLtd.,aglobalindexprovider.TheIndex,launchedonSeptember28,2009,iscalculated,maintainedanddistributedbySTOXXLtd.andisusedasanunderlyingforthecreationofavarietyofnewfinancialproductsincludingExchangeTradedFunds(ETFs)tradedonbothmarkets,andtherebyprovidenewinvestmentopportunitiestotheinvestorsfortheequitiestradedonBorsaİstanbulandATHEX,atlowercostswithanaimtofacilitatecrossborderaccessbetweenthetwomarkets.

GT-30iscomposedofatotalof30constituents,15fromeachmarket,basedontheirfullmarketcapitalizationindescendingorder.TheIndexisreviewedbiannually(March,September)astoitscompositionandquarterly(March,June,SeptemberandDecember)regardingcappingfactors.

PriceandReturnIndicesareavailableforGT-30,andintwodifferentcurrencies,EURandTL.DisseminationfrequencyofPriceIndicesisrealtimeat15-secondsintervals,whereasdataonReturnIndicesaredisseminatedattheendoftheday.DataaredeliveredtodatavendorsbySTOXXLtd.overCEFFeed(DeutscheBörsesystem)

ThefirstETFstrackingthereturnoftheGT-30werelaunchedinTurkeyandGreececoncurrentlyonNovember3,2010.ThesenewproductsarethefirstmultimarketETFsandthroughthisnewinvestmentvehicle,investorsgainaccesstothelargeststocksofGreekandTurkishmarketssimultaneously,withease.

Formoreinformation,pleasevisit:http://www.stoxx.com/indices/index_information.html?symbol=GT30P

The Dow Jones FEAS Indices

TheDowJonesFEASindiceswerelaunchedinJune2009.Threeindices,onecomposite(DowJonesFEASCompositeIndex)andtworegionalsub-indices(DowJonesFEASMiddleEast/CaucasusIndexandDowJonesFEASSouthEastEuropeIndex),measuretheperformancesofcompaniesacrossEuro-Asianregion.Theyarealldesignedtounderlieindex-linkedinvestmentproductssuchasfundsandstructuredproducts.Inadditiontofloat-adjustedmarketcapitalization,componentsareselectedonthebasisofreadilyavailableprices.TheindicesarecalculatedanddisseminatedinEURandUSDandweightedbyfloat-adjustedmarketcapitalization.

DowJonesFEASTitans50EqualWeightedIndexbegantobecalculatedonNovember2,2011.ThecalculationofDowJonesFEASMiddleEast/CaucasusIndex,SouthEastEuropeIndexandCompositeIndexstartedonDecember31,2004(basedate)withastartvalueof100point(basevalue).ForFEASTitans50WeightedIndex,back-testedhistoricaldatahavebeencalculateddailybacktoDecember31,2004,thedateatwhichtheindexbasevaluewassetat1000.DowJonesFEASIndicesarerebalancedquarterlywhenadditionalFEASmemberexchangesareadded.

Formoreinformationpleasevisithttp://www.djindexes.com

S&P/OIC COMCEC 50 Shariah Index

S&P/OICCOMCEC50ShariahIndex,ajointindexoftheOrganizationoftheIslamicCooperation(OIC)MemberStates’StockExchangesForumandS&PIndices,comprising50tradableandliquidstocksfrom19OICMarkets.TheIndexwaslaunchedonJune22,2012inIstanbulandstartedbeingdisseminatedonJune25,2012.Asofend2013,financialproductsbasedontheindexareyettobedevelopedtomaketheindextradable.

4948

Borsaİstanbul,togetherwithOICmemberexchangesand

S&P,isworkingtowardspromotionoftheindextoencourage

developmentofsuchproductsbyinvestmentcompanies.

StockseligiblefortheS&P/OICCOMCEC50ShariahIndexare

selectedinaccordancewithShariahcompliancescreenings

asdeterminedbytheS&PShariahIndicesMethodology.In

addition,stocksmusthaveaminimumthree-monthaverage

dailyvaluetradedofUS$1millionateachrebalancing

referencedate.Toensurediversification,atleastonestock

butnomorethaneight,fromeachcountryorterritorymust

beincludedintheIndex.

Additionally,ateachquarterlyrebalancing,nostockcanhave

aweightinexcessof5%andnocountrycanhaveaweight

inexcessof20%.TheIndexisdesignedtomeasurethe

performanceoffiftyleadingshariah-compliantcompanies

fromthememberstatesofOIC,namely,Bahrain,Bangladesh,

Coted’Ivoire,Egypt,Indonesia,Jordan,Kazakhstan,Kuwait,

Lebanon,Malaysia,Morocco,Nigeria,Oman,Pakistan,Qatar,

SaudiArabia,Tunisia,TurkeyandtheUnitedArabEmirates.

Formoreinformation,pleasevisit

http://eu.spindices.com/indices/equity/sp-oic-comcec-50-

shariah

IBTX (Istanbul Traded Index) and IBTX Banking

BorsaİstanbulandWienerBörselaunchedtheIBTX(Istanbul

TradedIndex)andIBTXBankingonOctober1,2012.The

IBTXiscalculatedbasedonthepricesofthetwentymost

activelytradedsharesofBorsaİstanbul.TheIBTXBanking

indexconsistsofthemostliquidTurkishbankingstocks.

Bothindicescanbeusedasabenchmarkandunderlying

forstandardizedderivatives(futuresandoptions)aswell

asanunderlyingforstructuredproducts(warrants,index

certificatesandETFs).Investorshavealreadydemonstrated

keeninterest,especiallyintheIBTX:asofApril2014,thereare

2Austrianbanks(ErsteBankandRaiffeisenBank)whoissued

certificates(open-endmaturities)linkedtoIBTXindices(IBTX

andIBTXBankingindicesdenominatedinEUR).

TheIBTXiscalculatedintotalreturnandnettotalreturn

terms.Allindicesarecapitalization-weightedindicesand

arecomputedinEUR,USDandTL.Thestartingvalue

wasfixedat1,000indexpointsasof3January2011.The

calculationparametersarereviewedonaquarterlybasisand

thecompositionoftheindexisreviewedandadjustedas

necessarysemiannually.

Formoreinformation,pleasevisit:

http://en.indices.cc/indices/details/ibbe/price/

Corporate

Governance3IPO

in Turkey4

5150

ThefirstsetofCorporateGovernancePrincipleswas

publishedinJuly2003.Theprinciplesweredetermined

byajointcommissionwhichincludedCMB,Borsaİstanbul

andtheTurkishCorporateGovernanceForumexperts.

CMBrevisedtheprinciplesinFebruary2013andanew

setofCorporateGovernancePrinciplesissuedbyCMB.

Accordingly,allcompanieslistedonBorsaİstanbulexcluding

companieslistedonEmergingCompaniesMarketand

WatchlistCompaniesMarket,aresubjecttomandatory

implementationofcertainCorporateGovernancePrinciples.

Inordertoencouragethelistedcompaniestocomplywith

thecorporategovernanceprinciples,theExecutiveCouncil

decidedtoconstituteaspecialindexforcompaniesthat

haveacorporategovernancegradeanddeterminedthe

basicrulesofBorsaİstanbulCorporateGovernanceIndexon

March10,2004.

BorsaİstanbulCorporateGovernanceIndexiscomposed

oftheBorsaİstanbultradedcompanieswithcorporate

governanceratinggradesdeterminedaccordingtothe

Principles.Theminimumcorporategovernanceratinggrade

is7outof10,additionallytheminimumgradeis6.5outof10

foreachmainsection.

BorsaİstanbulCorporateGovernanceIndexstartedtobe

calculatedonAugust31,2007withthebeginningvalueof

48,082.17,whenthenumberofeligiblecompaniesreached

5.AsofApril2014,thenumberofcompaniesincludedinthe

CorporateGovernanceIndexreached47.

Initialpublicoffering(IPO)isdefinedasthesalesofequitiestoseveralandunknowninvestorsthroughacalland

announcement.Themethodofpublicofferingofcompanyequitiesmayvarysubjecttoanumberofconditions.Companies

maychoosetoofferpartoftheequitiesrepresentingtheexistingcapitalthroughsalesofexistingsharesortoincreasecapital,

restrictingthepre-emptiverightsofexistingshareholders,ortoapplybothmethodsconcurrently.IPOsbetween2004-2013

areshowninthebelowtable;

(*)T.HalkBankasıAŞ’sUSD2,521,163,726worthSPOisincluded.

(**)EmlakKonutGYOA.Ş.’sUSD1,585,365,854worthSPOisincluded.

Moreover,inordertoattractnewcompanies,Borsaİstanbulmadeamendmentsinitsregulationssoastoallowthetrading

ofcompanieswhichareregisteredwiththeCMB.Thereisapotentialofover200companiesthatcanbetradedontheBorsa

İstanbulEquityMarketinthiscontext.

Number of IPOs Value of IPOs(in US $ terms)

Foreign InvestorsParticipation in IPOs(in US $ terms)

Share of ForeignInvestors in IPOs(%)

2004 12 482,575,185 181,605,844 38

2005 9 1,743,964,256 1,618,853,108 93

2006 15 930,501,524 496,144,397 53

2007 9 3,298,307,170 2,250,991,077 68

2008 2 1,876,834,333 1,146,360,759 61

2009 1 6,908,183 - -

2010 22 2,104,017,741 924,334,082 44

2011 27 841,902,207 365,669,555 43

2012* 27 2,873,307,989 2,033,389,535 71

2013** 19 2,340,102,063 1,765,966,190 75

Number and Value of IPOs in Turkey

5352

Preperatıon Of an IPO

Inorderforacompany’ssharestobelistedinBorsaİstanbul,

theprospectusdetailingtheofferinghastobeapproved

bytheCMBandsubsequentlyitsshareshastobelisted/

registeredwiththerelevantBorsaİstanbulmarket.

Listing/registrationwiththeExchangedenotesthatthe

companysharesareacceptedfortradingintherelevant

marketonaconditionthattheycomplywithallthe

requirementsofthatmarket,aswellasBorsaİstanbul.

Processesofpreliminarypreparationpriortotheapplication

ofcompaniestoourExchangeandtheCapitalMarkets

Boardcouldbeoutlinedinthefollowing:

Constitution of an Internal IPO Task Force

Sinceacompany’ssharestobepubliclyofferedand

subsequentlytradedintheExchangedependonvarious

procedures,whichneedtobecompletedinternallyor

throughexternalProfessionalassistance,itiscrucialto

constituteataskforcewithinthecompanytohandlethe

publicofferingapplication.Ideally,suchataskforceshould

becomprisedfromfinanceandpublicrelationsexperts,as

wellas,mid-levelmanagementfromrelevantdepartments

ofthecompany.Inordertoensureasmoothapplication

process,thistaskforcehastoitemizeeachandevery

procedure,priortoofficiallyapplyingbeforetheCMBand

Borsaİstanbul.

Selection of the Brokerage House

Inorderforacompany’ssharestobeofferedpublicly,the

applicantcompanyhastoenterintoanagreementwith

abrokerage/investmenthouse.However,thebrokerage/

investmenthouseselectedbytheapplicantcompanyis

requiredtoberecognizedbytheCMB.Thelistofapproved

brokerage/investmenthousescouldbefoundonhttp://

borsaistanbul.com/en/members/members-list.Acompany

mayeitherchoosetosignanagreementwithonlyone

brokerage/investmenthouseor–largelydependingonthe

sizeoftheIPO-optforaconsortiumtotakeadvantageof

thesyndicatedeffortsofseveralbrokeragehouses.Ina

consortium,atleastoneofthebrokeragehouseshastobe

identifiedasthe“leader”oftheconsortium.Theagreement

betweenacompanyandbrokerage/investmenthouse(s)

typicallyincludestherightsandresponsibilitiesofboth

parties,whetherornottherewillbeanundertakingoption

andhowitwillbecarriedout,aswellas,theIPOmethodand

otherrelevantfundamentals.

InanIPO,brokerage/investmenthousesemployeitherof

thefollowingmethods:

1-BestEffort

2-BrokerUndertaking

a)Undertakingoftheremainingbalance

b)Undertakingoftheentirebalance

c)Partiallyundertakingoftheremainingbalance

d)Partiallyundertakingoftheentirebalance

Inaddition,tobeincompliancewiththerelatedCMB

communiqué(No:VII-128.1),abrokerage/investmenthouse

hastoassurethatitwillundertake:

a)Theentireunsoldamount,ifthemarketvalueofthe

sharesofferedisbelowTL20,000,000;

b)TheentireunsoldamountuptoTL20,000,000,and

halfoftheremainingunsoldamount,ifthemarketvalueof

sharesofferedisbetweenTL20,000,000and

TL40,000,000

assessedusingtheinitialpublicofferprice.

Preparation of Financial Statements and the Selection of an Independent Auditor

AllcompaniesapplyingforanIPOarerequiredtopreparetheirfinancialstatementsinaccordancewiththecapitalmarkets

regulationsandhavethesestatementsauditedbyanindependentauditfirm.Therefore,anapplicantcompanyisrequiredto

selectanindependentauditfirmandsignanauditcontract.

Ordinance of the General Assembly and the Amendment of the Articles of Association

UpondecidingonanIPO,acompanyshouldmakeamendmentsonitsArticlesofAssociationdocumentinordertocomplywith

thecapitalmarketsregulations,andsubmittheseproformaamendmentstotheCMB.IfthereareanyclausesintheArticles

ofAssociationthatlimitthecirculationandtransferofthesharestobetradedintheExchange,and/orpreventshareholders

fromexercisingtheirrights,theyshouldberemoved.ThecompanyhastoensurethateachclauseintheArticlesofAssociation

documentisincompliancewiththecapitalmarketsregulations.InthecasethatanIPOwillbecommencedviaanincreasein

capital,theGeneralAssemblyofthecompanyhastoratifyadecisionstatingthecompanywillincreaseitscapitalandlimitthe

pre-emptivepurchaserightsofitsexistingshareholdersviaanordinanceinordertocomplywiththeTurkishCommercialCode.

IPO Price Determination

Price-settingprocessisconsideredtobeacrucialstageinanIPOapplication.TheIPOpriceisnotonlydependentwith

theinternaldynamicsofthecompany,butitisalsoaffectedbyexternalconditions,oftenuncontrolledbythecompany.

EstablishingarealisticofferpricehighlycorrelateswiththesuccessoftheIPO,aswellasthepost-IPOstockperformance.The

offerpriceisdeterminedbythebrokerage/investmenthousesandthereforeneitherBorsaİstanbulnortheCMBintervenein

thisprocess.

InthecasetheofferpriceestablishedishigherthaneitheroftheestimatedpriceofBorsaİstanbulandthenominalvalueof

theshares,a“priceevaluationreport”preparedbytheactivebrokerage/investmenthouse,whichincludesthepriceandthe

calculationmethodologiesallocatedindeterminingithastobepublishedinthePublicdisclosurePlatform(PDP)website

(www.kap.gov.tr)atleastthreedaysbeforetheinceptiondateofthepublicoffering.Thisreportcouldbeexaminedbyother

brokerage/investmenthousesandtheirfindings/analysescouldalsobepublishedatthePDPwebsite

Preparation of Documents Required in the Application

Theapplicantcompanyand/orthebrokerage/investmenthousecommissionedbythecompanyisexpectedtobegin

deliberatingwiththerelevantauthoritiesofBorsaİstanbulandtheCMBinthepreliminaryphasesoftheIPOprocess.All

thedocumentsrequiredbytheExchangeareitemizedintherelevantclauseofBorsaİstanbulListingregulations(Clause

No:IX),whichcouldbeviewedathttp://www.borsaistanbul.com/en/products-and-markets/regulations/by-laws.Although

thedocumentsrequestedareasked,andthereforesubmitted,withinageneralframework,supplementarydocumentation

couldberequestedfromtheapplicantcompany,dependingonitsbusinessactivitiesandindustry.Allpertinentdocuments

submittedhavetobefurnishedwiththeofficialstamp/sealoftheissuingentity.

5554

5

5756

Borsaİstanbulhassupportednumeroussocialandcultural

programsindicatingtheimportancethatBorsaİstanbul

attachestosocialresponsibility.

Borsa İstanbul Schools

In1997,BorsaİstanbulsetuptheEducationFundand

earmarkedUSD116,000,000totheFundfromitsown

resourceswithinthescopeoffinancialsupportfor

“ContributiontoNationalEducationProject-EFİKAP”.Ever

sincethen,theFundsuppliedacontinuousflowofresource

totheimprovementofeducationnationwide.

OnthebasisoftheeightprotocolssignedbetweenBorsa

İstanbulandtheMinistryofNationalEducationfrom1998

todate,thedonationsfortheconstructionofeducational

institutionsin238districtsof74citieshavereachedtoUSD

1,000,000,000.

DuringthewholephasesoftheProject,415fullyfunctional

andequippededucationalinstitutionshavebeen

constructedincluding,butnotlimitedtouniversityfaculty

buildings,administrativebuildings,socialfacilitycenters,

publictrainingcenters,primaryschools,highschools,

apprenticeshipschools,boardingschools,vocationalhigh

schools,dormitories,mass-housing,sportsandcultural

centers.

ItisestimatedthatschoolssponsoredbyBorsaİstanbul

haveservedapproximately650,000studentsincluding

thosegraduatedsincetheproject’sinception.

Borsaİstanbul’sinvaluableinitiativecontributesnotonly

toformationofeducatedmanpowerbutalsotoobservable

increaseinawarenessofcapitalmarketsforthosewhoarea

partoftheProject.

Sustainability Platform

Borsaİstanbulinitiatedtheestablishmentofa“SustainabilityPlatform”,whichbringstogetherthenon-governmentalorganizationsworkingonsustainability,supportingthesustainabledevelopmenttarget,therelatedinitiativesandstakeholdersin2013.SustainabilityPlatformaimstocontinuetoworktowardsitstargetsandstrengthenTurkey’spositionwithregardtosustainabilityasaresultofthejointeffortsofallstakeholders.

United Nations’ Global Compact

BorsaİstanbuljoinedUnitedNationsGlobalCompact,world’slargestcorporatecitizenshipinitiative,in2005.Globalcommonvirtuessuchasenvironmentalandecologicalfriendlyprojects,laborandhumanrights,anti-corruptionandtransparencyarethecorevaluesofGlobalCompactandthesevaluesarecompletelyconsistentwithcorporatevaluesofBorsaİstanbul.Accordingly,BorsaİstanbuldisclosesannualCommunicationonProgress(COP)reporttoUNGlobalCompact.COPcapturesactivitiesofBorsaİstanbulwithregardstosociallyresponsibleprinciplessetoutbyUNGlobalCompact.

United Nations’ Principles on Responsible Investment

TheUnitedNations-supportedPrinciplesforResponsibleInvestment(PRI)Initiativeisaninternationalnetworkofinvestorsworkingtogethertoputthesixprinciplesforresponsibleinvestmentintopractice.Itsgoalistounderstandtheimplicationsofsustainabilityforinvestorsandsupportsignatoriestoincorporatetheseissuesintotheirinvestmentdecisionmakingandownershippractices.BorsaİstanbulbecameasignatorytothePRIInitiativeunderthecategoryof“ProfessionalServicePartner”onJanuary21,2010.

Sixprinciplesofresponsibleinvestmentareasfollows:•IncorporationofESG(environmental,socialandgovernance)issuesintoinvestmentanalysisanddecision-makingprocesses•BecomingactiveownersandincorporatingESGissuesintoownershippoliciesandpractices•SeekingappropriatedisclosureonESGissuesbytheentitiestobeinvested•Promotingacceptanceandimplementationoftheprincipleswithintheinvestmentindustry•WorkingtogethertoenhanceeffectivenessinimplementingthePrinciples•ReportingonactivitiesandprogresstowardsimplementingthePrinciples

Sustainable Stock Exchanges Initiative - SSE

SustainableStockExchangesInitiative,formedbytheUnitedNationsin2009,withtheinitiativeoftheUnitedNationsConferenceonTradeandDevelopment(UNCTAD),UnitedNationsPrinciplesonResponsibleInvestment(UNPRI),GlobalCompact,andUnitedNationsEnvironmentProgrammeFinanceInitiative(UNEPFI)isaplatformforexploringhowexchangescanenhancesustainabledevelopmentandbenefitfromeachother’sexperience.BorsaİstanbulisoneofthefirstexchangestosupportSSE,since2012.

Borsa İstanbul Sustainability Index

Sustainabledevelopmentisdefinedas“thedevelopmentthatmeetstheneedsofthepresentwithoutcompromisingtheabilityoffuturegenerationstomeettheirownneeds.”Fromastockexchangeperspective,itreferstotheactionstobetakenorprinciplestobefollowedbycorporations.Stockexchangeshavethepotentialtocontributetosustainabilityagendainasubstantialway.Globally,stockexchangesaredevelopingarrangementstoencouragelistedcompaniestodisclosetheirsustainabilitypracticesandtheriskstheymightfacewithregardtosustainabilityissues,whilealsomakingdecisionstostrengthentransparency,andtocreateawarenessonsustainability.

BorsaİstanbulhassignedacooperationagreementwithEthicalInvestmentResearchServicesLimited(EIRIS)inOctober2013tocreateBISTSustainabilityIndexwhichisbasedontheperformancesofthecompaniesonenvironmental,socialandgovernanceissues.EIRISwillassesstheBorsaİstanbullistedcompaniesbasedontheinternationalsustainabilitycriteriaandthecompanieswhichperformbetterthanthethresholdwillbeincludedintheIndex.

Borsaİstanbulfirmlybelievesthatintoday’sworldremainingkeenonenvironmental,socialandgovernmentperformanceisnecessaryforlongtermsuccessofTurkishcompanies.BorsaİstanbulSustainabilityIndexProjectiscurrentlyinprogressandtheIndexwillbelaunchedin2014.Thankstoeffortstorealizethisproject,Borsaİstanbulexpectstoprovideaplatformforinstitutionalinvestorstodemonstratetheircommitmenttocompaniesmanagingenvironmental,socialandgovernanceissueswithhighperformance.

Corporate Social

Responsibility5Corporate Social

Responsibility

5958

6International Memberships

and Recognitions

Borsa İstanbul Memberships

WorldFederationofExchanges,WFE

InternationalCapitalMarketAssociation,ICMA

FederationofEuro-AsianStockExchanges,FEAS

InternationalOrganizationofSecuritiesCommissions,IOSCO

FinancialInformationServicesDivision,FISD

IslamicFinancialServicesBoard,IFSB

FederationofEuropeanSecuritiesExchanges,FESE

InternationalIslamicFinancialMarket,IIFM

ExtensibleBusinessReportingLanguage,XBRL

IntermarketSurveillanceGroup,ISG

FinancialInformationExchange,FIX

AssociationofFuturesMarkets,AFM

FuturesIndustryAssociation,FIA

WorldFederationofDiamondBourses,WFDB

theLondonBullionMarketAssociation,LBMA

WorldEconomicForum,2014

International Recognitions received by Borsa İstanbul

U.S.SecuritiesandExchangeCommission,SEC

TheJapanSecuritiesDealersAssociation,JSDA

AustrianMinistryofFinance

International Initiatives supported by Borsa İstanbul

SustainableStockExchangesInitiative,SSE

UnitedNationsGlobalCompact

UnitedNationsPrinciplesofResponsibleInvestment,UNPRI

July

2014

BORSA İSTANBUL FOR INVESTORS · 46 Borsa İstanbul Government Debt Securities Indices 47...

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