This market was launched under Borsa İstanbul Debt Securities Market, with the aim of allowing execution of repo transactions on company shares within an organized market framework. Equities acquired through repo transactions are delivered to the buyer for the duration of the contract.
The shares of companies that are traded on Borsa İstanbul Equity Market and included in BIST 30 Index are eligible to trade on the Equity Repo Market.
At the beginning of the the repo term, the equities are delivered to the buyer. At the end of the repo term, the buyer will deliver the same type and amount of equities to Takasbank to be transferred to the seller. Trades can be executed with a starting value date as the prevailing date, or a future date up to 2 working days.
Limit orders are placed by specifying the repo rate and the repo amount. The non-executed part of the order remains passive in the system.
In this type of orders, the repo rate is not specified. The order given in multiples of the minimum order size is fully or partially matched by passive orders and the non-executed part of the order is cancelled.
Limit Orders and Market Orders may include the specific conditions defined below.:
Fill and Kill Order
It is an active order type, which is subject to the condition of execution in part. As soon as it is entered, this order matches with the outstanding counter-orders, and its non-executed part is automatically cancelled. It may be given in the form of a “Limit Order” or a “Market Order”.
Fill or Kill Order
It is an active order type, which is subject to the condition of execution in full. If this condition is not met as soon as the order is entered, the order is cancelled. It may be given in the form of a “Limit Order” or a “Market Order”.
Validity Periods of Orders: Orders are valid for the day on which they are placed. All the same day value-dated orders are cancelled at 13:00 unless executed. Future value-dated orders are cancelled at 17:30 by the system automatically unless executed.
Order Matching Rules
On the market, transactions are executed according to multi price continuous auction method. In the execution of orders, for a specific repo term, the repo rate is taken into account. If the repo rates are equal, then time priority applies. Accordingly:
- repo orders are matched with reverse-repo orders with the same or a lower repo rate;
- reverse repo orders are matched with repo orders with the same or a higher repo rate.
Order Entry Methods
If the share which is subject to the repo is not traded yet in the Equity Market as of the time the repo order is sent to the system, the order is rejected. The price of the share subject to the repo transaction is the price of the last trade in the relevant share in the Equity Market as of the moment of the transaction.
Repo Rate and Equity Price Ticks
In entering orders, repo rates can be entered in 0.01% increments. TRY 0,001 tick is applied for the share price.
Unmatched orders and unexecuted parts of partially matched orders can be modified. While the change in the repo rate, the increase in amount, or the change of portfolio/fund/customer code leads to the loss of time priority, the change of the reference information and reduction of the repo amount do not give rise to the loss of time priority.
Unmatched orders and the unexecuted part of matched orders can be canceled.
Orders are transmitted in multiples of the minimum order. The minimum and maximum order sizes in effect are as follows:
Orders may be transmitted to the Market with a future starting value date up to 2 working days. Repo end value date can be one year the most.