Page 16 - Investing in Borsa Istanbul Markets

10. Investor Protection and

Market Surveillance

Investor Compensation Center intervenes when investment firms fail to fulfill their obligations to pay cash or
deliver capital market instruments originating from investment services or activities. The upper limit of the
amount (TRY 323.670 for 2022) to be paid to each investor is increased by the rate of re-appraisal each year.

Takasbank plays a very important role as a CCP by taking on counterparty credit risk between parties to a
transaction, i.e. by acting as buyer against seller and seller against buyer.

Assets of the funds are segregated from the assets of their Instrument and investor based measures are taken based
founders and portfolio custodians, which provides an on either Volatility Based Measures System or Directive on
extra layer of security. The assets may not be used as Surveillance Measures to protect investors from the risks
collateral or be pledged without a specific mandate. The arising from extreme volatility, to ensure that exchange
assets may not be attached including for the purpose of transactions are conducted in secure, transparent,
collecting public receivables, may not be included in the efficient, stable, right, fair and competitive manner; to
bankruptcy estate and may not be subject to cautionary prevent improper, fraudulent acts and violations; and to
injunction. prohibit illegal exchange transactions.

MKK is regarded as the Financial Accounts Center of Violations of capital market rules and legislation and
Türkiye and all investor accounts are fully segregated from market abuse actions are reported to the Capital Markets
that of intermediary institutions. Board of Türkiye. As per the regulation; insider trading,
manipulation and market abuse actions are subject to
Market surveillance activities are carried out with a proac- strict sanctions such as trading and settlement restrictions,
tive approach in order to ensure that markets operate in a fines and imprisonment.
reliable, transparent, efficient, fair, and stable manner.
Markets are monitored on a real-time basis using an
electronic surveillance system, unusual price and volume
movements are followed, and market distorting transac-
tions are detected.

PAGE | 14 www .borsaistanbul.c om