When brokers of various members submit their orders in written form to the exchange experts, these orders are entered into computer system. The system automatically matches the orders according to price and time priority.
The lending orders for different maturities which have the price and time priority are broadcasted simultaneously through information broadcast services. The amount and lending rate of the order may be seen in these services as well as cumulative data for trades.
The delivery type which may be cash settlement or physical delivery will be stated by the brokers while the orders are submitted. A serial number is given to the trades existed by the matching of orders according to rules. The data for each transaction is faxed to the counterparts after the execution. The objection period for these trades is 15 minutes.
The reports concerning all trades of members are faxed to the counterparts after the end of session.
Session is non-stop between 09:45 a.m. and 17:30 p.m.
Precious Metals Trading on The Market
1000/1000 fineness for gold and 100/100 fineness for silver, platinum and palladium are considered in lending transaction.
The buy and sell orders must include:
a) The name of the member which submits order
b) The kind of the order (separable / block)
c) The type of the order (lending / borrowing)
d) The price type
e) The kind, amount and fineness of precious metal in the order
f) The lending rate
g) Maturity (end of maturity)
h) The type of delivery (physical delivery or cash settlement)
i) The number of order
The orders which are valid until the end of session can be cancelled or changed during the session. Orders which are not transacted or canceled on the market are subject to automatic cancellation by exchange system.
Divisible / Block Orders
While the amount stated in the order must be completely traded in Block Orders, it can be partly traded in divisible orders.
Minimum amount for the orders is 5 kgs. The amount can be increased by 1 kg.
The weighing unit for the trades is kg. The price types used in payments are Turkish Lira and US Dollar.
Lending Rate Intervals
Lending rate interval for the orders is 0,0001 (one to ten thousand). For example; % 5,02 or % 5,03.
Although the maturity of the trade may be increased daily for the trades which have maturity up to one month, the maturity of the trade may be increased monthly for the trades up to 360 days.
Value date is (T+0) for all transactions.
Borrower of the precious metal is responsible either to deliver the lender precious metal or to pay the required amount to the lender on the expiry date. The required amount may be precious metal or cash.
On trading day if the parties had selected cash settlement for delivery, at expiry the borrower will pay the liability in cash to the clearing bank that is the value of the precious metal weighted average price in the last maturity date for the benefit of the lender.
The debts and claims are notified to the counterparts two days before the expiry date for the maturities more than two days. If the cash settlement was agreed on trading day the borrower will pay the value of the precious metals multiplied by the weighted average price of the last trading day of Precious Metals Market.
The borrower submits the required amount of precious metals to the Exchange vault at the time of settlement. In the case of cash settlement borrower will pay the amount of money for the precious metals to the Clearing Bank on the expiry date.
After the fulfillment of requirements the collaterals are released. Members who do not fulfill the conditions for conclusive lending and certificate transactions become defaulters. In case of nonpayment by the defaulter, this amount is covered by the member's collateral deposited to the Exchange.
The remainder payments for the precious metal less than 1 kg amount are charged by the currency stated in trade. Weighted average price on the last trading day in precious metal market is used for the calculation of remainder payments.
Trading commission is 1 per ten thousand from the buyer and the seller separately.
Clearing and Collateral
The clearing of the transactions on the market is carried out by the Precious Metals and Diamond MarketsDepartment and İstanbul Settlement and Custody Bank (Clearing Bank). Lender submits the required amount of precious metals to the Exchange vault at the time of clearing.
The clearing date for lending transactions is the same day (T+0) with the transaction day and for the certificate transactions it is the next day (T+1).
The borrower can trade up to ninety percent (% 90) value of his collateral that he submitted to the Exchange. The collaterals and the worth of trades are valued daily. If the worth of trade increases up to the % 97 percent value of collaterals, member is obliged to increase the collaterals by the Exchange.
b) Precious metals accepted by the Exchange
c) Foreign currencies
d) Letter of credit
e) Government Bills and Treasury Bonds (% 90 percent)