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Sub-markets in the International Market
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The Objective of the
Market The ISE International Market (ISE IM) has been established in the “ISE International Securities Free Zone” and operates in a tax-free environment. The objectives of the ISE International Market are to encourage the flow of international capital to the ISE and to provide a transparent and secure trading environment for securities issued in international markets. In an environment of total freedom of mobility of funds, prices shall be determined freely and competitively, thereby raising the liquidity and variety of investments.
Regulations pertaining to the ISE IM and principles on the Settlement and Custody Operations became effective upon the publication in the Turkish Official Gazette No:22666 on June 14, 1996. Applications for admittance of foreign securities as well as debt securities issued by the Turkish Republic and its Local Administrations for trading on the ISE IM, can be submitted as from July 1, 1996 through the intermediary members authorized by the ISE to trade on the ISE IM (marked as "DR, BB" in the list of members ). The Market offers important opportunities for domestic and foreign individual and institutional investors. By eliminating operational risks such as cash transfer and foreign trade restrictions, this Market offers international fund managers an opportunity to have access to regions which in the past they have refrained from investing in due to the aforementioned risks. In addition, issuers wishing to obtain funds from international capital markets are now provided with the opportunity to acquire the funds they need-by selling their securities in a transparent and highly liquid environment. Another advantage offered by the Market is the level of automation that the Turkish banking and financial sector has reached, that is comparable to those in its Western counterparts, allowing for the repatriation of the proceeds of transactions conducted on the Market. Also, as the Market operates in a free zone, such repatriation is not subject to any restrictions. All proceeds (including but not limited to dividends, capital gains and interest) that authorized banks and brokerage houses will earn on the Market, operating in a free zone, are exempt from taxes. All trading and settlement operations and payments on the Market are carried out in hard currencies such as US Dollars and Euro etc.(or other hard currencies accepted by the ISE Executive Council). Nevertheless, regardless of the type of foreign currency in which the securities of foreign issuers are issued, the yield they receive from the securities to be listed on the Market will be denominated in hard currencies accepted by the ISE Executive Council. Sub-markets in the International MarketThe International Market consists of two sub-markets: The ISE IM Depositary Receipts Market where the shares are traded; The ISE IM International Bonds and Bills Market where debt instruments are traded. These two markets have different trading systems. ISE IM Depositary Receipts Market ISE IM Depositary Receipts Market has its floor inside the ISE building which also lies in the ISE International Securities Free Zone. There is a Main Market and a Parallel Market in the ISE IM Depositary Receipts Market. Those securities satisfying The ISE IM Listing Requirements are listed in the Main Market, and those satisfying the parallel market requirements are admitted to the Parallel Market upon the decision of the ISE Executive Council. The Market employs quote and order driven continuous auction trading system with one market maker for each traded security. The market maker who may operate in more than one depositary receipt will provide price continuity and stability, correct order imbalance by quoting bid and ask prices on a continuous basis to assure the proper operation of the Market and to provide high liquidity. The market will operate in an electronic environment and the trading system will be fully automated through a computer network. Orders will be submitted to the system through brokers and matched automatically according to price and time priority rules. Trading activities are carried out in one session between 13:00 and 16:30. Normal orders are given as a trading unit or multiples of it. Order amounts given at one time may not exceed the limit determined by the Executive Council. Odd-lot orders that involve less securities than a trading unit are given in terms of numbers of foreign securities. The system enables the execution of several types of orders such as "limit," "fill or kill," "special limit value" and "good till date" type orders. The Executive Council determines the time limit that an order may be valid. Time limited orders may be converted to daily orders by the member. Market makers may change their quotations at any time during a session. However, their altered quotations are sorted as a new order in terms of time priority. Special orders exceed the upper amount limit determined by the Executive Council exclusively for each foreign security and they cannot be traded partially. The Executive Council is authorized to regulate the method of trading, price ticks, amounts and order types in the rights issues market. There are no price limitations on the trading prices of foreign securities in the multiple-price continuous-auction system that employs a market maker. The Executive Council may decide to impose upper and lower price limits. Settlement of securities are realized through Takasbank. But, when the traded securities are safe kept abroad and transactions are carried out in foreign currencies, Takasbank finalizes related transactions via its correspondent banks. Collection and distribution of all rights of investors such as dividends, rights and bonus issues on deposited securities will be handled by the intermediary representative institution of the related company and Takasbank will act as an intermediary in the execution of ISE IM Companies’ corporate actions. However, relevant corporate actions are generally executed by depositary banks within the framework of depositary agreements. Announcement Of Executed Prices Exchange registered prices and total trading volumes of every foreign security are announced in the Exchange Bulletin within the following business-day at the latest. In this announcement, prices are denoted as highest, lowest and closing registered prices. ISE IM International Bonds and Bills MarketIn International Bonds and Bills Market, transactions began on February 24, 1997. Transactions can be realized both by banks and intermediary institutions. International Bonds and Bills Market has a semi-automated trading system where members deliver their orders via telephone to an ISE Expert, who acts as a "blind broker", then the received order is entered into the computer system by the Expert. Every order is assigned an identification number and then matched according to price and time priorities. All telephone communication is recorded and members are immediately informed about transactions via fax massages whenever their orders are executed. Current trading information is distributed through data vendors. Information on securities, on best bid and ask orders for each security at each transaction value date as well as the top five rows of the order book are displayed on-line by data vendors. Transactions are carried out from 10:00 to 17:00. Only daily orders with certain execution prices are available in the trading system. Orders may have a value date of at least 3 and at most 90 business days. At the end of each trading day unexecuted orders are deleted from the system and the following trading day starts with a clean book. Members may deposit their securities at an international clearing house, ISE Settlement and Custody Bank (Takasbank) or at any other custodian. Settlement of transactions are carried, at the value date, at an international clearing house through accounts of Takasbank. Announcement Of Executed Prices Exchange registered prices and total trading volumes of every security are announced in
the Exchange Bulletin within the following business-day at the latest. In this
announcement, prices are denoted as highest, lowest and weighted average for each
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Copyright and Disclaimer 1996 Istanbul Stock Exchange
The rules and regulations constituting the procedures and
principles for the establishment, management, operation and payment terms for the ISE
International Securities Free Zone became effective after being published in the
Turkish Official Gazette No: 22353 on July 24, 1995.