Trading Method

Those who are authorized to trade in the market transfer their orders to the Trading System (Precious Metals Trading Platform – KIT) over the internet through their representatives in the trading hall or via remote access, within the specified price and transaction limits and within the framework of risk management rules. Those who are authorized to make transactions can integrate their own transaction systems with FIXAPI with an interface to the Trading System, provided that they meet the specified certification conditions.

Transactions are carried out according to the multiple-price method, in accordance with the rules of price and time priority. Buy and sell orders entered into the system are delivered to members and international markets at the same time through data provider’s screens.

A member who wishes to buy or sell the precious metal; transmits the buy or sell order to the Exchange for processing. If the executed order is a buy order and is greater than or equal in price to the best sell order that has already been submitted, the order in the sell can be filled in whole or in part. If the executed order is a sell order and is less than or equal in price to the best buy order that was previously submitted, the buy order can be filled in whole or in part.

It is essential to apply the continuous trading method in PMM. The continuous trading method is the method of matching the orders transmitted to the system at different price levels in accordance with the priority and transaction rules in a continuous manner during the transaction periods determined by the Exchange. Orders can be collected with a single price method in a time frame determined within the continuous trading session.

The single price method is the method of matching the orders transmitted to the system over the time periods determined by the Exchange and matching them at a single transaction price determined in accordance with the priority rules and in a way that will realize the most transaction amount. A single price session consists of order collection and price setting stages. At the order collection stage, orders are transmitted to the system and sorted according to price-time priority rules, no matching is done, orders can be changed or canceled. At the price determination stage; orders cannot be entered, and orders entered at the order collection stage cannot be changed or canceled. In a single price session where the single price method is applied, only orders with a settlement date of T+0 and a price unit of USD/ONS for a standard 1 kg of gold can be entered.

Trading and Settlement Hours

Price Units

In the market, precious metals are traded in kilograms and grams for Turkish Lira and traded in ounce for US Dollars and Euro currencies. Obligations are fulfilled in the currency in which the transaction is carried out. Prices are entered as two digits after a comma in all price units. The TRY/GR price unit is applied only in mini-bars. The TRY/KG price unit cannot be used for mini bars.

For single price and fixing orders, the price unit can only be USD/OUNCES.

The price unit indicates that the transaction will take place in the selected currency according to the selected criterion (ounce, kg, gr), and in any case, the physical exchange takes place on the actual traded product.

In conversions between kilograms and ounces of weight units, 1 kilogram = 32.1507465 ounces, 1ounce = 31.1034768 grams

Value Dates

For single price orders, the value date is only T+0.

For fixing, orders can be entered for the clearing days of the following 10 calendar days, but the LBMA Fixing price announced on the morning of the day of the transaction will be valid as the fixing price to be cleared.

For all other products, orders can be entered for clearing days in the following 120 calendar days.

Price Ticks

The price steps by metal and price unit are as follows (except for Mini Bars):

Order Types

A limit price order is an order in which the price and quantity are specified. As long as the unexecuted part of the order is not processed, it is passively kept in the system until the end of the validity period.

In limit price orders, matching is performed at the price in the order or at a better price according to the price and time priority rule

While limit price orders are met in the market, lower-priced sell orders have priority over higher-priced sell orders; and higher-priced buy orders have priority over lower-priced buy orders. In case of price equality in orders, time priority apply that is orders that have been entered system before are fulfilled first. If the price and quantity are changed in the orders, the time priority is lost.

Portfolio, client, and fund can be selected as account types in orders. Those who are authorized to trade can only enter orders on behalf of their own clients and funds.

Price Limits

In PMM, price limits are dynamically determined according to the prices of precious metals in international markets. Price limits are set on a calendar day basis based on settlement dates. Price limits are determined by the Precious Metals and Diamond Market Directorate, taking into account the market dynamics.

Modification and cancellation of orders

The quantities of orders entered into the system can be decreased or increased (when the amount is increased, the order loses its time priority, as it is considered as a new order entered into the system); The price of the order can be increased or lowered (and when the price is changed, the order loses its time priority, as it is considered as an order that has just been entered into the System). Order improvement, raising the price for a buy order, lowering the price for a sell order; Order deterioration means lowering the price for a buy order and raising the price for a sell order.

In the order, the account type and account can be changed freely. The untraded part of the orders can be canceled at any time. Changes of orders and cancellation of orders are carried out in permitted sessions and free of charge.

Fixing orders and trades

Fixing orders are placed on the London market based on the LBMA fixing prices in the morning session. Orders are placed according to the values dates defined in the system. Fixing transactions are not carried out on non-clearing days on the stock exchange and on days when the LBMA morning fixing price is not published.

In fixing, orders can only be entered for the US Dollar price type. Orders are placed by entering any U.S. dollar value in the price field (±) after selecting the order type.

Trade Report

Within the specified limits, a trade report can be entered in order to convert orders into transactions without forwarding them to the order book and by selecting the counterpart.

In the trade report, the settlement is made according to the gross principles. Trade reports are converted into transactions by accepting the sent trade report by the counterparty member or by entering a trade report in the opposite direction (purchase versus sale, sale versus purchases) by the other member under the same conditions.

Priority rules are not applied in the trade report, the trade report is sent or accepted at the discretion and preference of the member.

Precious Metals Trading on the Market

Standard Precious Metals

Standard precious metals with the following characteristics can be traded on 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.

The accepted standard types of bars and ingots are as follows:

Gold

• Mini Bar: 1 gr, 2,5 gr, 5 gr. 10 gr, 20 gr, 50 gr, 100 gr, 250 gr ve 500 gr
• Bullion: 1 kg
• Large Bar: Bullion over 1 kg.

Silver

• Mini Bar: 1 gr, 2,5 gr, 5 gr. 10 gr, 20 gr, 50 gr, 100 gr, 250 gr ve 500 gr
• Bullion: 1 kg
• Large Bar: Bullion over 1 kg.
• Granule: Packaged granules in various weights  

Platin 

• Mini Bar: 1 gr, 2,5 gr, 5 gr. 10 gr, 20 gr, 50 gr, 100 gr, 250 gr ve 500 gr
• Bullion: 1 kg
• Large Bar: Bullion over 1 kg 

Palladium

• Mini Bar: 1 gr, 2,5 gr, 5 gr. 10 gr, 20 gr, 50 gr, 100 gr, 250 gr ve 500 gr
• Bullion: 1 kg
• 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 %)

The members of the Market who deliver the relevant precious metal to the Exchange vault are responsible for the compliance of the non-standard precious metals traded in the Precious Metals Market with the adjustment report issued.

Members who will trade in the Precious Metals Market shall apply the following principles in the procurement of non-standard precious metals subject to trading through ramat houses and refineries, taking into account the purity settings contained in the Decision on the Amendment of the Decision No. 32 on the Protection of the Value of the Turkish Currency published in the Official Gazette dated 17.11.2011 and numbered 28115:

• Ramat houses and refineries that make the conversion have to affix company stamps and seals indicating their carat and weight on the non-standard precious metal they manufacture.
• Members who will trade in the Precious Metals Market with the non-standard precious metals whose characteristics are specified in this way must obtain an adjustment report from the General Directorate of Mint and Stamp Printing House or the institutions to be determined by this institution and submit it to the Precious Metals Market.
• Non-standard precious metals that are imported by the members of the Precious Metals Market of the Stock Exchange and delivered to the Stock Exchange vault will be delivered to the Precious Metals Market together with the relevant customs declaration, non-standard precious metal import information form and adjustment report issued by the member. In urgent cases, it is sufficient to submit the adjustment report and customs declaration. The General Directorate of the Stock Exchange is authorized to take all kinds of measures in this regard.

Precious Metals Produced from Ore

In the procurement of precious metals produced from the ore subject to trade, the following principles will be applied according to the characteristics specified in Article 13 of the Communiqué on Precious Metals Standards and Refineries:

• The producing organization will ensure the maximum compliance of the precious metal in the form of dore bars, granules and other forms produced from ore with the principles determined in the communiqué.
• Members who will trade in the Precious Metals Market with dore bars, granules and other forms of precious metals produced from the ore in question must obtain an adjustment report from the General Directorate of Mint and Stamp Printing House or the institutions to be determined by this institution.

The General Directorate of Mint and Stamp Printing House or the institutions to be determined by this institution will determine the characteristics of the precious metal in the form of dore bars, granules and other forms produced from the ore and will prepare the adjustment report that determines the purity settings and weights of each precious metal that makes up the ore.

Precious metals in the form of dore bars, granules and other forms produced from ore in the country;

• It is subjected to refining process in refineries established in Turkey and delivered to the Stock Exchange vault within seven (7) business days following the completion of the refining process and traded in the Precious Metals Market, or
• Within the transaction principles to be determined by the Stock Exchange, trading is carried out in the Precious Metals Market by making separate transactions according to the amounts included in the adjustment report to be prepared by the General Directorate of Mint and Stamp Printing House or the institutions to be determined by this institution.

Import

According to subparagraphs (a) and (d) of Article 7 of the Decree No. 32 on the Protection of the Value of the Turkish Currency, the import of precious metals in standard unprocessed form is carried out only by the Central Bank of the Republic of Turkey and precious metals intermediary institutions, without prejudice to the provisions of their own legislation. Precious metals intermediary institutions are obliged to deliver the standard and non-standard unprocessed precious metals they import to Borsa Istanbul A.Ş. within three working days and to buy/sell on the Stock Exchange. In the importation of unprocessed precious metals carried out by precious metals intermediary institutions within the scope of the Inward Processing Regime Decision, there is no requirement for the delivery of imported standard and non-standard unprocessed precious metals to Borsa Istanbul A.Ş., and it is obligatory to inform the Stock Exchange in writing by the precious metals intermediary institution within three working days.

In addition, precious metals intermediary institutions notify the Exchange through the Single Window System (TPS) with the information contained in the Borsa Istanbul Pre-Import Notification Form in Annex-3 at least 1 business day before the closing date of the customs declaration for each transaction in the import of unprocessed precious metals to be made by “Cash-in-Advance”, “Payment Against Goods” or “Import With Waiver” payment methods.

Members make their first domestic purchase and sale transactions of the unprocessed precious metals they import only at the Stock Exchange.

Imported standard precious metals must be produced by refineries included in the Borsa Istanbul A.Ş. KMKTP Bar, Ingots and Granules Refinery List That Can Be Traded.

It is obligatory to submit the imported non-standard unprocessed precious metals to the Stock Exchange together with the adjustment analysis report obtained from the General Directorate of the Mint and Stamp Printing House, the import declaration report and the "Information Form on the Import of Unprocessed Precious Metals (Annex-2)".

Notification of over-the-counter transactions to the Exchange

Although it is essential that the trading transactions of those who are authorized to trade are carried out through the Exchange system, it is obligatory to notify the Exchange of the mutual trading transactions of standard and non-standard unprocessed precious metals that they will carry out outside the Stock Exchange in accordance with the following principles. These transactions carried out outside the Exchange are also considered as Exchange transactions.

Within five business days following the transaction date, the parties notify the over-the-counter transaction using the Off-Exchange Trade Report menu on the KIT.

The trading commission is calculated on the data at the time and on the day the Off-Exchange Trade Report is entered, without any difference from a normal transaction.

The withdrawal commission is also charged from the buyer.

If any of the parties makes a notification, fees and commissions are calculated and collected for all parties.

In the event that the transactions carried out by the Members outside the Exchange are not notified to the Exchange within five business days, in addition to the commission amount to be paid, additional penal commission rates are charged according to the frequency of recurrence within a calendar year, and delay interest is applied to the total commission amount, including the penal commission to be paid, for the delay period.

Trading collaterals and instruments that are accepted as collaterals

What is accepted as collateral in the market, collateral valuation coefficients, collateral principles and other related issues are specified in the   procedure issued by Takasbank.

In order to cover the risks arising from the transactions carried out in the market, those who are authorized to trade in the market are obliged to deposit trading collateral within the framework of the procedures and principles specified in the Takasbank legislation prepared in line with the opinions of the Stock Exchange. The transaction collaterals determine the transaction limit of those who are authorized to trade.

Collateral management is carried out by Takasbank. All processes such as the parameters to be used in the calculation of collaterals, net collateralization method, valuation, deposit, withdrawal, exchange, etc., are carried out in accordance with the legislation regulated by Takasbank.

Clearing and Settlement

The physical exchange and storage of precious metals is carried out in precious metal custody vaults determined by the Exchange.

In the clearing processes and principles regarding the transactions taking place in the market, the provisions regarding the central clearing institution of Takasbank are valid. Members who do not fulfill their settlement obligations will not have their settlement receivables paid.

In the market, the deadline for delivery for precious metals obligation and the deadline for payment for monetary obligations is 17.00. On weekends, public holidays and half-day holidays, barter transactions are not carried out.

The obligation of the seller is to deliver the precious metal and the obligation of the buyer is to deliver the total cash amount of trade to the Clearing Center in accordance with the conditions set out the relevant regulation. After that seller gets the precious metals and buyers get the total cash amount of trade according to relevant regulation. However, in the self-purchase and sale transaction of precious metals produced from unrefined ore, clearing is carried out with a fineness report. In such transactions, transaction and withdrawal commissions are charged as if the precious metal had been delivered to the Clearing House.

The delivery of precious metals is made in the type of precious metal that is the subject of the transaction taking place.

The clearing of purchase and sale transactions that take place on the market can be carried out before the time set for collective clearing, provided that the transacting parties fulfill their obligations. Early settlement is done based on the request entered through the Clearing Terminal.

Exchange Fees

• In standard gold transactions, a share of 0.0001 (1 in ten thousand) is charged between different members, and 0.0004 (4 in ten thousand) when the buyer and seller are the same
• In silver, platinum and palladium transactions, a stock market share of 0.00015 (1.5 per ten thousand) is charged between different members, and 0.0003 (3 per ten thousand) when the buyer and seller are the same.
• In ore transactions, a share of the stock exchange is charged at the rate of 0.00015 (1.5 per ten thousand) between different members, and 0.0006 (6 per ten thousand) when the buyer and seller are the same.
• In non-standard precious metal trading transactions on the stock exchange, a share of 0.0001 (1 in ten thousand) is charged between different members, and 0.0004 (4 in ten thousand) when the buyer and seller are the same.

Exchange fees are charged monthly

Exchange are charged separately from the buyer and seller.

All exchange fees are calculated on the basis of the net trading volume found by taking into account the specific amount of the precious metal. Transaction volumes for transactions in currencies other than Turkish Lira are calculated by converting them into Turkish Lira at the CBRT exchange rate on the previous day.

The Exchange fee received in mini bullion transactions is a minimum of 5 Kurus + BIIT

 BITT is charged at a rate of 5% on the exchange fees.

Withdrawal Fees

• At the rate of 0.0002 (2 per tent thousand) for standard gold,
• At the rate of 0.0003 (3 per ten thousand) for precious metals produced from standard silver, platinum and palladium and ore,
• At the rate of 0.0002 (2 ten- thousand) for non-standard gold,
• At the rate of 0.0003 (3 per ten thousand) to be collected from the buyer's account for all other non-standard precious metals,

Withdrawal fees are charged monthly.

The withdrawal fee charged for mini bullion transactions is a minimum of 5 Kurus, including BITT.

BITT is charged at a rate of 5% on withdrawal fees.

Custody Fees

For precious metals stored in the stock exchange vault, the custody fee is calculated every month based on the daily average amount and the daily reference price.

The custody fee is charged on the net amount of the precious metal.

In calculating the storage fee of the precious metal, whose weight unit is recorded as ounces, the storage fee is calculated by converting the base to TL/kg.

The storage fee charged for mini bar transactions is a minimum of 5 Cents, including BIIT.

BIIT is charged at a rate of 5% on the storage fee.

*For Borsa İstanbul Fee Schedule follow link.

For the list of members click on following link.