FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT JUNE 2012
ISTANBUL GOLD EXCHANGE
In 2011 we have managed technical
infrastructural studies as well as market
structures and gold backed financial
instruments studies.
Osman Sarac
Chairman
Istanbul Gold Exchange targets to stimulate
local business and international attention with
all other globally competitive enterprises which
will provide Turkey to be a central hub for the
gold business, due to its strategic position, as
it lies in the heart of a major gold trade area,
exposed to Middle East, Europe and Gulf
States.
In 2011 we have managed technical
infrastructural studies as well as market
structures and gold backed financial
instruments studies. We have been making
important steps to integrate international
communities.
For the integration of the Exchange to the
international markets, there have been
important steps since 2007. In March 2008 we
have been an associate member to London
Bullion Market Association, by May 2008 we
GENERAL INFORMATION
Istanbul Gold Exchange is a state institution
which has an autonomous system for precious
metals trading in organized market conditions
with time and price priority. Gold prices on the
Istanbul Gold Exchange are determined by the
market generally reflecting trends in international
prices. Members of Istanbul Gold Exchange are
authorized to import gold to Turkey.
Services Provided
• Spot gold. Silver, platinum and palladium
trading.
• Diamond and Precious Stones Market,
• Precious Metals Lending Market
transactions.
• Physical settlement of the transactions.
• Depository for the precious metals belonging
to mutual funds and gold ETF in Turkey.
• Depository for individual investors.
• Authority for Kimberley Process Certification
Scheme for rough diamonds in Turkey.
• Determination of local and international
Precious Metals Refineries whose products
can be imported to Turkey and be transacted
in the Exchange.
Brief History
Istanbul Gold Exchange began its operations on
July 26, 1995. The Exchange has two types of
markets: Precious Metals Market, Precious
have joined World Federation of Diamond
Bourses, by February 2010, we are honored
to be part of a large family with distinguished
members, FEAS as an affiliate member. The
Exchange became a member of the Kimberley
Process Certification Scheme (KPCS), in
August 2007, which aims to curb the flow
of conflict diamonds, with 49 participants
worldwide. and retailers abroad while the bulk comes from
sales to tourists sold in the local market. By
2011, by the increase of gold prices since 2007
huge amount of gold came to the market as
scrap and Turkey turned to be an exporter of
gold in the market. The supply of scrap gold
to the market continued in 2011 and an annual
amount of 90-100 tons of gold was supplied to
the market.
The Turkish gold jewelry market has undergone
a major revival since the early 1990s with the
traditional and long-standing historical affinity
for gold jewelry adjusted for modern tastes.
Turkey is now the world’s fourth largest market
for gold jewelry, third largest manufacturing
centre and second biggest exporter. The annual export is estimated at US$ 3.3
billion, part of which is from gold bars and other
way of direct jewelry exports to wholesalers The annual amount of gold imported to Turkey
through IGE was 79 tons with a rise of 42.9
tons from 2010 which represented a rise of
88% y-o-y. The silver import of IGE was to be
42 tons with a rise of 22 tons from 2010 which
represented a rise of 113% y-o-y. The amount
of rises in demand of gold and silver depend
on the economic recovery in 2011 and raise
of consuming demand in gold and silver as
investment tool in banking system as well as
jewelry sector.
Metal Lending Market. In markets, standard
and non-standard gold, silver and platinum are
traded. Regulated by
• State Ministry
• Undersecretariat of Treasury
Spot gold trading started at the opening of the
Exchange. Silver and non standard precious
metals started to trade in 1999. Precious Metals
Lending Market started its operations in Istanbul
Gold Exchange on March 24, 2000 for the
purpose of bringing supply and demand into an
organized market, lowering the production costs
of the jewellery sector and securitization of gold. Board of Directors: 5 Members
• President of the Exchange
• Vakifbank T.A.O (Bank)
• Atasay Kiymetli Madenler A.S. (Precious
Metals Brokerage House)
• Istanbul Altin Rafinerisi A.S. (Precious Metals
Refinery)
• Kuveyt Türk Katılım Bankası A.S. (Bank)
Domestic or foreign banks, precious metals
companies, currency offices, precious metals
producing and marketing companies and
precious metals refineries that obtained
the membership certificate from the Under-
Secretariat of Turkish Treasury and complied
with the requirements set forth by the IGE Board
of Directors can trade on the Exchange. Memberships to International Organizations
• London Bullion Market Association (LBMA)
• World Federation of Diamond Bourses
(WFDB)
• Federation of Euro-Asian Stock Exchanges
(FEAS)
There are 88 members consisting of 22 banks,
35 Exchange Offices, 21 Precious Metals
Brokerage Houses and 10 Precious Metals
producing and marketing companies.
Form of Settlement and Transfers
Through member accounts by Clearing Center
and determined Clearing Bank
Legal Status
State Institution
Settlement Period
From T+0 up to T+9
FUTURE OUTLOOK
In 2012 IGE intends to:
• To complete the new infrastructure for
internet based 24 hours trading.
• Establish the customer based ordering
trading system and mobile trading system
• Establishment and implementation of Base
Metals Market in IGE.
• Establishment and implementation of
Currency Market in the Exchange.
• Establishment and implementation of
Carbon Rights and Licenses Market in the
Exchange.
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