FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT JUNE 2012
İSTANBUL MENKUL KIYMETLER BORSASI
In 2011, 27 companies went public
resulting with the highest number of IPOs
since 2000.
İbrahim Turhan
Chairman & CEO
İstanbul Menkul Kıymetler Borsası (İMKB)
works together with all its stakeholders to move
forward with the mission of contributing to the
development of the Turkish economy. As one
of the key components of the financial system,
with its US$ 261 billion market cap as of March
2012 and high growth potential, İMKB aims to
improve the depth of the market further and to
augment the amount of funds channeled to the
economy.
The nationwide IPO Campaign, which has
been underway for more than two years, has
set to bearing fruits. In 2011, 27 companies
went public resulting with the highest number
of IPOs since 2000. Similarly, corporate bonds
market has signaled a healthy growth as a
result of decreased public sector borrowing
requirements. The dynamism brought to
the market by the IPO Campaign has also
influenced foreign companies. This influence
can be observes when referring to the listing
applications we have received from foreign
companies.
İMKB has registered a success story in
government debt securities market as well. The
exchange hosts virtually 4/5th of the trading
HISTORY AND DEVELOPMENT
In 1981, the Capital Market Law was enacted
and one year later, the Capital Markets
Board was established. In October 1984, the
Parliament approved the Regulations for the
Establishment and Operations of Securities
Exchanges and İMKB was formally inaugurated
in 1985.
İMKB provides a fair and transparent
marketplace for trading of a wide variety of
securities from stocks, exchange traded funds,
warrants to government bonds, Treasury bills,
corporate bonds, money market instruments
(repo/reverse repo) and foreign securities.
Currently, there are four markets operating at
the İMKB; the Stock Market, the Bonds and Bills
Market, the Foreign Securities Market and the
Emerging Companies Market.
İMKB was recognized as a “Designated
Offshore Securities Market” by the U.S.
Securities and Exchange Commission in 1993,
and was designated as an “appropriate foreign
investment market for private and institutional
Japanese investors” by the Japan Securities
Dealers Association in 1995. İMKB has been
volume in fixed income securities and the over-
the-counter market transactions of government
securities run in small quantities. In terms of
traded value, the ISE Bonds and Bills Market is
one of the top ten markets of the world in 2011.
İMKB has sustained its immense efforts to
improve sustained efforts to markets operations
and surveillance for market efficiency and
integrity. In due respect, automatic circuit
breaker system has been put in place along
with continuous auction with or without market
makers and single price auction methods,
order cancellation, and reduced price ticks.
Anonymity of order executers has been another
policy action so as to support a more effective
price formation and to prevent adverse market
movements.
Securities and the Interbank Repo Market) have
been introduced. Equity repo market will up and
running before the end of the year.
The Istanbul International Financial Center (IFC)
strategy plays an essential role in delivering
a roadmap for the financial industry towards
making Istanbul a global center of economy
and commerce. İMKB constitutes the backbone
of this multi-pronged strategy towards targets
for listing and trading.
İMKB has subscribed to innovative ideas and
policies. In line with the efforts to offer new
markets and financial instruments to investors,
a market for trading of warrants of financial
intermediaries has been launched. Emerging
Companies Market for SMEs has been initiated,
and three sub- markets under the Bonds and
Bills Market (the Offerings Market for Qualified
Investors, the Repo Market for Specified Putting all these in a context, innovation,
investors and issuers will be the three
main pillars paving the way of İMKB. The
commitment to working with the regulators,
intermediaries, fund managers and other
involved parties to devise new products and
markets will be the denominator for innovation.
İMKB will engage more in the public offering
initiative by putting the corporate governance
and sustainability at the forefront. Meanwhile,
the joint action of all parties on investor
awareness and financial literacy will underpin
the efforts to strengthen the demand side. It
is our firm belief that the concerted efforts of
the sectoral institutions will lead us to create
synergy and success on all the targeted areas.
approved by the Austrian Ministry of Finance
as a regulated market in accordance with the
regulations of the Austrian Investment Fund
Act in 2000. Foreign investors now account for
a substantial volume of daily trading and hold
around 62% of the publicly-held stocks in their
portfolios amounting to US$ 45.6 billion, as of
end-2011. • İMKB is steering a joint initiative for creating
an order routing platform to serve as a single
access point from and to the local as well
as regional exchanges. This platform will
consolidate the liquidity of the local and
regional markets and as a consequence,
contribute to the global recognition of the
local securities industry.
İMKB currently owns 32.63% of the İMKB
Settlement and Custody Bank, 30% of the
Central Registry Agency and 18% of the Turkish
Derivatives Exchange. On the international level,
İMKB has participations in the Kyrgyz Stock
Exchange, Baku Stock Exchange and Sarajevo
Stock Exchange with stakes of 24.51%, 5.26%
and 5% respectively. • İMKB is planning to launch the Equity Repo
Market. Another plan is planning to introduce
the market-maker system for the private
sector borrowing instruments.
FUTURE OUTLOOK
• İMKB is planning to introduce a closing
session at the Stock Market by the end
January 2012.
• “İMKB Sustainability Index” is planned to be
completed in 2012.
• İMKB, along with other sectoral institutions
initiated an IPO Campaign in 2010. Similar
events were organized in 2011 as well.
This year İMKB also initiated an “Investor
Campaign”, aimed at attracting savings to
capital markets.
• The technical infrastructure of the Stock
Market Trading System is planned to be
changed for better market efficiency.
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