Precious Metals Market includes the spot trade of standard and non-standard gold, silver, platinum and palladium metals. Some of the basic activities and duties of the market are as follows:
Registration of import and trade of unprocessed gold, silver, platinum and palladium that are defined in Decree numbered 32 concerning the Protection of the Value of Turkish Currency.
Registration and trade of precious metals that are domestically produced.
Trade of precious metals with fineness lower than certain amount defined by Communique of Standards and Refineries of metals to be transacted on the Precious Metals Market..
Physical exchange of the transactions between members of the Precious Metals Market of Borsa İstanbul A.Ş.
Storage of precious metals owned by members, mutual funds, exchange-traded funds’ assets
Members of Precious Metals Market
Membership for the Market
Authorisation Process
Three authorities’ authorisations are required respectively
Ministry of Treasury and Finance
For establishment and activity of
Currency Offices,
Precious Metals Brokerage Houses,
Precious Metals Producing and Marketing Companies,
Branches of Foreign Companies Resident in Turkey
For activities of domestic banks in Precious Metals Market
Borsa Istanbul Board of Directors
Capital Markets Board of Turkey is informed
Membership – Who Can Be Member
Intermediary Institutions*:
Precious Metals Brokerage Houses,
Banks,
Group A Authorized Institutions,
Precious Metals Producing and Marketing Companies
Branches of Foreign Companies Resident in Turkey
Precious Metals Brokerage Houses: Companies which are admitted to operate on the Exchange by Ministry of Treasury and Finance and who trade for the account of and on behalf of themselves, for the account of and on behalf of third parties or on behalf of themselves but for account of third parties and whose operational principles shall be governed by Regulation.
(*) Regulation Concerning The Principles Of Operations Of Precious Metals Exchange Intermediary Institutions And Foundation Of Precious Metals Brokerage Houses, by Ministry of Treasury and Finance
Foundation of Precious Metals Brokerage Houses
Joint stock company,
Minimum 500,000 TL paid-up capital,
The shares must be issued in cash and shares must be issued on the name of the bearer.
To have the expression “Precious Metals” in their commercial trade name
Principal Agreement should be in conformity with regulations
The founders should meet the specific conditions which are listed on related regulations
At least 2 of the founders of the company should have experience of minimum 3 years of trade and production of Precious Metals and these persons to minimum 50 % or more shares of the company.
Licensing Precious Metals Brokerage Houses by Minestery of Treasure and Finance
Required documents, information and actions for establishment of Precious Metals Brokarage Houses:
Charter of the company to be registered at the Trade Registry Gazette
The list of authorized signatures,
To appoint a qualified general manager
Members of board of directors, auditors and staff who have authority to sign have to fulfill specific requirements determined in regulations
After preliminary authorisation, If candidate brokerage house fails to apply for full licensing within 180 days, application is rejected.
After getting licence, within 60 days Borkerage Houses has to apply to exchange.
Also after licensing, brokerage firms has to come in operation in the exchange within one year.
The license has to clearly be posted in the company.
License for other Intermediary Institutions
Other intermediary institutions also has to apply to Ministerty of Treasury and Finance for getting licence to operate in the Exchange.
Other intermediary institutions are also subject to same requirements as partners, members of board of directors, auditors and authorized signatories fulfill the conditions determined in the regulations.
Precious metals brokerage houses, authorized institutions and precious metals producing and trading incorporated companies are obliged to declare the amendments concerning their members of board of directors, auditors and authorized signatories to the Ministry of Treasury and Finance with the documents suggest that these persons fulfill the conditions set forth at Article 5 before the amendment.
Only Group A Authorized Institutions are allowed for Precious Metals activities and must be at least 5 million TL paid up capital.
For precious metals producing or trading incorporated companies, paid up capital must be at least 500 thousand TL and these companies should be in precious metals producing or trading business at least for three years.
Institutions resided abroad and have the operation license from the relevant country’s regulatory authority for precious metal production, trade or brokerage are subject to permission of Ministry of Treasury and Finance for operating as a member of Exchange by establishing a branch office in Turkey.
Activity Areas of Intermediatery Institutions
Buying, selling precious metals
Lending and borrowing precious metals
Temporary import of processed and unprocessed precious metals and stones to use them for the purpose of manufacturing finished products and export the same as finished or semi-finished goods and stones
Buying and selling of processed or unprocessed precious stones at the Exchange
Buying and selling of precious metals and stones domestically.
Buying and selling precious metals and capital markets instruments based on precious metals for the account of and /or on behalf of themselves and/or third parties
Export and import of processed and unprocessed precious metals and/or precious stones and precious goods made of these in compliance with the export and imports regulations
Buying and selling of cash foreign currency being limited to their activities at the Exchange
Borsa Istanbul Membership Process
After obtaining license given by Treasury and Finance Ministery, intermediary institutions are expected to apply to the exchange for beginning activities.
Information, records and documents requested by Exchange:
Authorisation for establishment
Licenses given by Treasury and Finance Ministery
Following information declared in the Principal Agreement
Foreign braches and representatives
Paid up capital and shares of holders
Curriculum Vitae (background) of chairman of board, share holders and auditors
Curriculum Vitae (background) of general manager, assistant general managers and other directors
Organisational structure
Contact addresses and phone numbers of centre and branches
Officers will be in touch with the Market
Following documents and information are also to be attached to the application letter:
Authorised signatures
Safekeeping contract signed by authorities
Tax certificate
List of representatives
Recognisance
Borsa Istanbul Membership Obligations
After Board’s Decision, members must fulfill their financial requirements which are;
Membership fees
Membership entrance fee (one time)
Operation fee (one time for each market)
Annual fee (yearly)
Collateral amount determined specifically for each market which they apply to operate
Membership fees
tablo eksik
*For Borsa İstanbul Fee Schedule follow link.
For the list of members click on following link:
http://www.borsaistanbul.com/en/members/members
Trading on the Precious Metals Market
Domestic or foreign banks, currency offices, precious metals brokerage houses, precious metals producing and marketing companies, international companies with its fully-authorized branch in Turkey that obtained the membership certificate from the Under-Secretariat of Turkish Treasury and complied with the requirements set forth by the Borsa İstanbul A.Ş. Board of Directors, are authorized for trading on the exchange.
Only members of the Precious Metals Market of Borsa İstanbul A.Ş. are eligible to import unprocessed precious metals and obliged to submit the import to the Exchange vault within three business days after the arrival of precious metals to Turkey.
Conduct of Trading
Members who want to buy or sell precious metal, submit their order to the system via the internet based platform named as Genium Inet Workstation (GIW) or FIX-API, especially for algotrade and high frequency trade.
Buying and selling orders are matched in the Electronic Exchange System automatically based on price and time priority. If a buying order that sent to the system has higher price from the best-selling price or equal to it, the selling order can be matched completely or partially.
If a selling order that sent to the system has lower price from the best buying price or equal to it, the buying order can be matched completely or partially.
The pending orders are broadcasted worldwide beyond the trading floor through information broadcast services.
Spot market (until 120 value date), Trade at Fixing market (delta trade based on LBMA A.M. price) and Single (Equilibrium) Price session types are open to trade.
Normal orders (with net settlement) and trade report (one to to gross settlement) are available.
Trading and Settlement Hours
tablo eksik
Trading Unit
Trading units (price units) in the market are
TRY/KG
USD/OZ
EUR/OZ
And TRY/GR for mini bars.
Monetary liabilities are paid based on currency of price unit. But fees are paid in TRY.
Orders
Orders can be «limit» type.
Priority loses when order updated
Day order or Good Till Cancel order can be given
Orders can be cancelled without limitation and free of charge
Orders can be given on behalf of portfolio, client or fund
Tailor Made instruments can be created automatically when entering an order (for large bars, nonstandard bars and ore)
Minimum quantity is 1, maximum quantity is 1000
Fixing order can be given only for standard gold. It’s executed over London am fixing prices and can only be in US Dollar. If “0” enter to the price section it means transaction will be executed at the fixing price and if a ± US Dollar value enter to the price section it means transaction will be executed up or below over the fixing price. Fixing transaction is not included netting transaction.
Price Ticks
tablo eksik.
Price Limits
tablo eksik
During Single Price Session (14:00-14:15) price limits : lower limit: 0,5%, upper limit: 1%.
During Trade at Fixing Session (09:00-12:30) price limits (range) : -/+ 20
Settlement
Clearing transactions are executed by the Precious Metals Market of the Exchange and Istanbul Settlement and Custody Bank (TakasBank). Obligations of precious metal and cash can be met without gathering parties of the transaction.
The buyer should deposit money equivalent of precious metal to the TakasBank. Then representatives of the member can receive their precious metal from the Exchange’s vault by submitting letter in written form. The seller should deliver precious metal to the Exchange vault.
Precious Metals Trading on the Market
Standard Precious Metals
Standard precious metals that have features below can be traded in the Precious Metals Market:
a) Standard Unprocessed Gold: Gold bullion and bar that their features set by the Under-Secretariat of the Turkish Treasury with minimum 995/1000 fineness.
b) Standard Unprocessed Silver: Silver bullion and bar and granules that their features set by the Under-Secretariat of the Turkish Treasury with minimum 99.9 % fineness.
c) Standard Unprocessed Platinum: Platinum bullion and bar that their features set by the Under-Secretariat of the Turkish Treasury with minimum 99.95 % fineness.
d) Standard Unprocessed Palladium: Palladium bullion and bar that their features set by the Under-Secretariat of the Turkish Treasury with minimum 99.95 % fineness.
General Specifications of Precious Metals
a) Precious metals that have the fineness seal of internationally accredited refineries or domestic refineries are traded at the Exchange.
b) It is compulsory that each bullion or bar which will be traded in the Exchange have the refinery emblem or seal, bullion serial number, weight and fineness.
c) Granule silvers which took place in the Refinery List published by the Exchange are traded in the Exchange as standard granule in case of being granule package, having the seal, fineness, weight and refinery name or emblem on the package.
Standard precious metals that have surface features below can be traded in the Precious Metals Market:
a) Precious metal should have smooth surface, not have blisters, crusting and migration and sharp corners. They should easily be stored and moved.
b) Granule silver packages should be prepared against outside intervention, tamper and impact resistant.
Types bar and bullion for standard precious metals trading are as follows:
Gold
a) Mini Bar: 1 gr, 2,5 gr, 5 gr. 10 gr, 20 gr, 50 gr, 100 gr, 250 gr ve 500 gr
b) Bullion: 1 kg
c) Large Bar: Bullion over 1 kg.
Silver
a) Mini Bar: 1 gr, 2,5 gr, 5 gr. 10 gr, 20 gr, 50 gr, 100 gr, 250 gr ve 500 gr
b) Bullion: 1 kg
c) Large Bar: Bullion over 1 kg.
d) Granule: Packaged granules in various weights
Platinum
a) Mini Bar: 1 gr, 2,5 gr, 5 gr. 10 gr, 20 gr, 50 gr, 100 gr, 250 gr ve 500 gr
b) Bullion: 1 kg
c) Large Bar: Bullion over 1 kg.
Palladium
a) Mini Bar: 1 gr, 2,5 gr, 5 gr. 10 gr, 20 gr, 50 gr, 100 gr, 250 gr ve 500 gr
b) Bullion: 1 kg
c) Large Bar: Bullion over 1 kg.
Non Standard Precious Metals
Nonstandard precious metals that have features below can be traded in the Precious Metals Market:
a) Nonstandard unprocessed gold: Gold bullion, bar, dore bar, granule, powder or scrap with below 995/1000 fineness (except 995/1000)
b) Nonstandard unprocessed silver: Silver bullion, bar, dore bar, granule, powder or scrap with below 99.9 % fineness (except 99.9 %)
c) Nonstandard unprocessed platinum: Platinum bullion, bar, dore bar, granule, powder or scrap with below 99.95 % fineness (except 99.95 %)
d) Nonstandard unprocessed palladium: Palladium bullion, bar, dore bar, granule, powder or scrap with below 99.95 % fineness (except 99.95 %)
Exchange members who deliver nonstandard precious metals to the Exchange are responsible for compliance with the fineness of precious metals with its certificate of assay.
Members who want to trade in the Exchange should take into consideration the rules below that took place in the Decree Regarding the Amendment of the Decree numbered 32 Concerning Preservation of the Value of Turkish Currency which is published on the Official Gazette numbered 28115 and dated November 17, 2011.
Recycling houses and refineries should seal their company emblem, fineness and weight on precious metals which they produced.
Members who want to trade in the Exchange with these nonstandard precious metals must get certificate of assay that is prepared by the Turkish Mint or assaying institutions approved by the Mint. Members should submit these certificates of assay to the Exchange.
Nonstandard precious metals that are imported by the members should be delivered to the Exchange with their customs declaration and precious metal information form that is set by the member and certificate of assay. In case of emergency, submitting of certificate of assay and customs declaration is sufficient. The Exchange Presidency is authorized to take every measure for that.
Domestically Produced Precious Metal Ore Transactions
Domestically produced precious metal ore in the form of dore bar, granule and other shapes can be traded in the Exchange in two ways as below:
Domestically produced precious metal ore is refined by internationally accredited refineries or domestic refineries. After completing refining process it should be delivered to the Exchange Clearing Center in 7 business days and traded in the Precious Metals Market of the Exchange.
Domestically produced precious metal ore can be traded separately in terms of precious metals type based on its certificate of assay that is issued by the Turkish Mint or assaying institutions approved by the Mint.
Specifications of domestically produced precious metal ore that is subject to transaction in the Exchange
According to the article 13 of the Communiqué about Standards and Refiners of Precious Metal the principles are implemented as below:
Producer company ensures that domestically produced precious metal ore is suitable with the principles in Communiqué about Standards and Refiners of Precious Metal at most.
Members, who want to trade with these precious metal ore in the Exchange, should get certificate of assay from Turkish Mint or assaying institutions approved by the Mint.
The Turkish Mint or assaying institutions approved by the Mint issue a certificate of assay that describe features, fineness and weights of domestically produced precious metal ore.
Trading, Withdrawal and Custody Fees
Please see Borsa İstanbul Fee Schedule at the following link:
http://www.borsaistanbul.com/docs/default-source/piyasalar/borsa-istanbul-fee-schedule.pdf?sfvrsn=76
Precious Metals Market Membership Guide
For Precious Metals Market Membership Guide, please follow the link below.
