A new regulation on regroups, simplifying the structure of the equity market, came into effect for Borsa Istanbul, Turkey's sole stock exchange, on Thursday.
Commenting on the new market structure, Treasury and Finance Minister Berat Albayrak said, accommodating the growth of Turkey’s capital markets so more investors can benefit from their resources were among the priorities of the newly announced three-year New Economic Program (NEP).
"The new share grouping is simpler and more predictable for investors," Albayrak said on Twitter.
In an earlier announcement on Sept. 17, Borsa Istanbul said the new market structure will include the BIST Main, BIST SubMarket, Watch List, Pre-market Trading Platform and BIST Stars.
As part of the new regulation, sub-segment groupings BIST Stars Group 1 and BIST Stars Group 2 and BIST Main Group 1, BIST Main Group 2 have been abolished. BIST Stars Group 1 and BIST Stars Group 2 will be changed into BIST Stars; BIST Main Group 1 will be changed into BIST Main, and BIST Main Group 2 will become BIST SubMarket.
Related changes have been made in the Equity Market Directive regarding the trading principles of this restructured markets and market segment change-over criteria.
The Emerging Companies Market segment will also be combined with the BIST SubMarket.
Most of the changes to be made in the trading method, short selling and margin trading, price margin, and circuit breaker applications of stocks will be, on the other hand, implemented with the removal of the current measures initially implemented by the Capital Markets Board (SPK).
According to the SPK decisions, previously declared valid until a second announcement, in the equities market, price margin of the shares traded on BIST Stars and BIST Main Market has been reduced to 10%.
Downstream price change triggering circuit breaker in BIST Stars and BIST Main Market has been reduced to 5% — 10% for upstream price change. Price margin in Exchange Traded Funds, Real Estate Certificates, Real Estate Investment Funds and Venture Capital Investment Funds has been reduced to 10% from 20%.