The Bonds and Bills Market is comprised of the Outright Purchases and Sales Market, where the secondary market transactions of fixed income securities are conducted; the Offerings Market for Qualified Investors where the borrowing instruments of the corporations whose stocks are traded on the ISE are issued to “qualified investors” as defined in the capital markets legislation; the Repo-Reverse Repo Market, where repo-reverse repo transactions are conducted; the Repo Market for Specified Securities, where repo-reverse repo transactions with specified securities are conducted and the Interbank Repo-Reverse Repo Market where the repo-reverse repo transactions are conducted only by the banks for their own portfolios. Government debt securities denominated in TRY and foreign currency, revenue sharing certificates and liquidity bills issued by the Central Bank of the Republic of Turkey start to be traded on the Bonds and Bills Market on the day they are issued, while debt securities issued by the Privatization Administration, the Housing Development Administration of Turkey and local administrations, and those securities which are decided to be traded by the Executive Council of the Exchange start to be traded on the second business day following the announcement made on the Public Disclosure Platform. Trading is conducted electronically in the Bonds and Bills Market via the automated multiple price-continuous auction system. The Outright Purchases and Sales Market opened on June 17, 1991; Repo-Reverse Repo Market on February 17, 1993; Offerings Market for Qualified Investors on May 17, 2010; Repo Market for Specified Securities on December 17, 2010 and Interbank Repo-Reverse Repo Market on January 7, 2011.
Settlement and custody operations are realized by the ISE Settlement and Custody Bank Inc. (Takasbank), a separate and independent institution founded by the ISE and its members. The principle of delivery versus payment is applied in settlement and thus the default risk in principal is eliminated.
Transactions of the Bonds and Bills Market are conducted on the following markets:
Outright Purchases and Sales Market
Outright Purchases and Sales Market assures secondary fixed income securities to be traded on an organized and transparent market and increases their liquidity.
Repo- Reverse Repo Market
The Repo-Reverse Repo Market which is one of the leading repo markets of the world assures that fixed income securities are sold with a re-purchase promise and are bought with a re-sale promise safely in an organized market
Repo Market For Specified Securities
The Market provides the opportunity to realize repo transactions on preferred securities within the organized market and then to deliver such securities to the buyer. Offering the possibility to exchange the security within a specified period, the Market serves to create an effective interest by ensuring a securities flow between the forward and spot markets.
Interbank Repo-Reverse Repo Market
The Interbank Repo-Reverse Repo Market was established to facilitate the repo-reverse repo transactions in organized market conditions, without having to meet the reserve requirement of the Central Bank, which is applied when a bank carries out repo transactions with a non-bank party.
Offering Market for Qualified Investors
The Offering Market for Qualified Investors is the market where the borrowing instruments of the issuers defined in the CMB Communiqué II/22 are issued to “qualified investors” as defined in the capital markets legislation, in accordance with the regulations of the Capital Markets Board of Turkey without preparing prospectus. The trading of the borrowing instruments issued in the “Offering Market for Qualified Investors” starts on the Outright Purchases and Sales Market, without further requirements.