Limit Orders

Limit orders are placed by specifying price/yield and nominal value in multiples of a certain minimum order size. The non-executed part of the order remains passive in the system.

Market Order

In this type of orders, a price/yield is not specified. The order given in multiples of a certain minimum order size is fully or partially matched by passive orders and the non-executed part of the order is cancelled.

The above order types can be given to include the specific conditions defined below:

Immediate or Cancel Order

It is an active order type 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 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 placed 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 orders with the same value date are cancelled at 14.00 hrs unless executed, and those with a future value date are cancelled at the market closing hour.

Price Base

Trading orders are transmitted in the currency of issue of the security over a price base of 100 units.

Orders for gold bonds and gold denominated lease certificates issued by the Treasury are transmitted over a price base of 1 unit in Turkish Lira.

Price Types

Clean price is the price of a security excluding the accrued interest or accrued lease during the coupon period, whereas dirty price is the price of a security including the accrued interest or accrued lease. Accrued interest or accrued lease is the amount of the coupon interest or lease that falls onto the number of days from the first issue date in the first coupon period, or from the coupon due date in other coupon periods, up to the settlement date. Settlement price is the price that is used in calculating the settlement amount of the trade, and is calculated with reference to the inflation coefficient for inflation-indexed Government Bonds. For other securities, it is equal to the dirty price.

Trade Reporting

In addition to order types described above, trade reports can be sent by specifying the nominal amount, price/yield, value date and capital market instrument to be traded. Sent trade reports can only be seen by counterparty member of the trade report. Trade reports can only be sent in capital market instruments issued by the Central Bank of the Republic of Türkiye, Treasury, asset leasing companies founded by the Treasury and asset leasing companies founded by public enterprises assigned by the Treasury.

Order Matching Rules

In the market orders are matched using the “multiple price-continuous auction" method. The matching of two counter orders in the Outright Purchases and Sales Market is enabled through giving priority to the highest price in purchase and the lowest price in sale. If orders have the same price, time priority is applied.

In addition to matching of orders with equal prices, two counter orders are matched when a sell order with a lower price than the price of the existing buy order is received, or when a buy order with a higher price than the price of the sell order is received. Where price equality does not exist, the price of the order entered in the system earlier is the trading price.

Order Entry Methods

Orders are transmitted over a certain price type or yield determined by Borsa İstanbul for each security.

a) Securities for which orders are entered by simple yield;

Discounted securities issued in TRY/ Foreign Currency and stripped principals of coupon-bearing bonds (except CPI-indexed bonds),  

b) Securities for which orders are transmitted over clean price;

TRY/foreign currency denominated flat-rate bonds and lease certificates, TRY denominated floating-rate bonds with fixed first coupon rates, and debt securities with coupon payments on the basis of TLREF or BIST TLREF index issued by the Treasury which are issued in accordance with security types indicated in legislation (Clean price net of inflation is used for CPI-indexed Government Bonds which have been issued by the Treasury since February 2007)

c) Securities for which orders are transmitted over dirty price;

CPI indexed annuity government bonds (except for inflation contribution), stripped coupons of bonds with coupons, floating rate bonds with floating initial coupon interest, foreign currency denominated floating rate bonds with unknown initial coupon interest rate, gold bonds and gold denominated lease certificates issued by the Treasury and real estate certificates (Dirty price, except for inflation contribution, is used for stripped coupons and principals of CPI indexed government bonds started to be issued by the Treasury in February 2007.)

Price and Yield Ticks

A tick of TRY 0.001 applies to orders transmitted over clean or dirty price in the market while a tick of 0.01% applies to orders transmitted over yield.

A tick of TRY 0.0001 applies to orders transmitted for debt securities which are traded over clean price with coupon payments based on TLREF or TLREF index for periods with unknown coupon rates, while a tick of TRY 0,00001 applies to orders transmitted for gold bonds and gold denominated lease certificates issued by the Treasury.

Order Change

Unmatched orders and unexecuted parts of matched orders transmitted to the market can be changed.

While the change in the price/return of the order, increase in nominal value and change of account holder of the trade lead to the loss of time priority, the reduction of nominal amount and change in representative reference do not give rise to the loss of time priority.

Order Cancellation

Unmatched orders and the unexecuted part of matched orders transmitted to the market can be canceled.

Orders are transmitted in the minimum order size and its multiples relative to the nominal values of the securities underlying the trade. On the Outright Purchases and Sales Market, orders with a nominal value below TRY 1.000.000 are traded on the Small Orders Market.

The minimum and maximum nominal order sizes in effect are as follows:

(*) Valid in allowed capital market instruments.

Mininum and maximum order sizes for gold bonds and gold denominated lease certificates issued by the Treasury in Normal Orders Market are 995 and 99.500 nominal respectively, 99.500 and 995.000 nominal respectively for trade reports. Orders are transmitted in 995 nominal and its multiples.

“The orders can be entered as same-day or forward value date in the Market. Future value date orders can not be entered for the variable-rate coupon-bearing securities for the periods of which the coupon rate has not been announced yet, or for the CPI-indexed government bonds for the periods of which the reference indices have not beet announced yet"

Under the “Market Making" system introduced by the Undersecretariat of Treasury, since September 2, 2002 for the purpose of enhancing effectiveness in the issue of government debt securities and secondary market transactions, market makers place purchase and sale orders that meet certain conditions with regards to quantity and spread for benchmark securities determined by the Undersecretariat of Treasury in accordance with the current rules of  Borsa İstanbul Debt Securities Market. If orders placed within the determined quantity and spread range are the best orders, they are reflected to the market screen. Additionally, market maker orders are announced with the market maker code on pages designed by data distribution firms, aside from the current broadcast pages of the market.

Market makers transmit a buy and a sell order for each benchmark security as the market maker. Market makers place orders using Borsa İstanbul Debt Securities Market trading terminals. Market maker orders as well as other orders are transmitted to the Debt Securities Market Outright Purchases and Sales Market, and are processed according to price and time priority subject to the current operating rules of that market.

Market making banks are announced to public by Republic of Türkiye Ministry of Treasury and Finance.

Related Files

Primary Dealers (Government Debt Securities)