Changes Made To The Share-Based Circuit Breaker System, The Index-Linked Circuit Breaker System And Short-Selling Transactions

1. INTRODUCTION

The Capital Markets Board of Türkiye ("CMB"), by its decision dated 6 February 2023, had prohibited short-selling transactions in the equity markets of Borsa İstanbul A.Ş. ("BIST"). With the CMB's decision dated December 5, 2024, the scope of this ban was narrowed. Accordingly, effective as of January 2, 2025, the short selling ban was lifted, limited only to equities listed in the BIST 50 Index.

Thereafter, by the press release it announced on 21 February 2025, the SPK stated that an investigation had been initiated regarding the extraordinary price movements observed in the BIST equity market, and within this framework BIST had resolved that, as of 24 February 2025, in the short-selling transactions in the shares in the BIST 50 Index, the uptick rule which permits entering orders only at a price equal to or higher than the last transaction price would be applied.