The Stock Market Directive (“Directive”) outlines the basis and procedures for the Stock Market, incorporated within Borsa İstanbul Anonim Şirketi. The Directive updates the Stock Market’s legal framework. It was approved by the Board of Directors of Borsa İstanbul Anonim Şirketi and the Capital Markets Board, entering into effect on 30 November 2015 as part of BISTECH transition. The Directive was prepared based on the Regulation of Principles Regarding the Stock Activities in İstanbul Stock Exchange Inc..
Borsa İstanbul A.Ş. and NASDAQ signed a Strategic Alliance Agreement on 20 January 2014, in which the parties aimed to have all markets within the Borsa İstanbul on through one common trading platform. The first step involves transferring the Stock Market onto a new trading platform. Accordingly, a new Share Trading System is launched with the Directive coming into effective on 30 November 2015.
The Circular Regarding Operational Principles of Derivative Exchange dated 19 July 2013 and numbered 433, which complements with the Directive, also enters into force on 30 November 2015. Accordingly, it amends maximum order size, stock share option agreements, stock share futures agreements, BIST 30 Index option agreements, Mini BIST 30 Index option agreements, as well as BIST 30 Index futures agreements.
On the other hand, the Directive regulates in particular:
- Orders sent to the Stock Market and transactions made in this Market, as well as reports written by the Stock Exchange regarding these order and transactions.
- Price and transaction quantity recorded by the Stock Exchange, as well as announcement of related information.
- Trade methods applied in the Stock Market
- Market making and liquidity providing exercises.
- Suspension of capital markets instruments transactions in the Stock Market.
- Special transactions, such as mass trading, official auction and primary market rights.
- Methods to perform clearing obligations after a transaction.
Provisions of the Directive will be conducted by the General Director of Borsa İstanbul A.Ş..
Please see this link for full text of the Directive (only available in Turkish).