FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT JUNE 2013
İSTANBUL MENKUL KIYMETLER BORSASI
FUTURE OUTLOOK
• On December 31, 2013 NASDAQ OMX
Group and Borsa Istanbul concluded a
wide-ranging agreement which includes
the delivery of market-leading technologies
and advisory services to Borsa Istanbul,
and NASDAQ OMX taking an equity stake
in Borsa Istanbul. Key aspects of the
agreement include the provision of NASDAQ
OMX’s most advanced and complete
selection of market technology solutions
and advisory services, based on the globally
market-leading Genium INET suite and all
associated platforms and applications, with
regional resell rights and also eventual self-
sufficiency for Borsa Istanbul.
• World Bank Global Islamic Finance
Development Center, the Bank’s first
representation office on Islamic Finance,
was launched at Borsa İstanbul premises
on October 31, 2013. The center will be
very effective in the development of Islamic
Finance in Turkey, and also in the region.
“Islamic Finance Conference Series - I” to be
organized on March 3-4, 2014 will be the first
product of the cooperation between World
Bank and Borsa İstanbul.
• An important development took place on
the regulatory side of Turkish electricity
market in 2013, following the promulgation
of Electricity Market Law (No. 6446). The law
foresees the creation of a power exchange,
the Energy Market Operation Joint Stock
Company (EPİAŞ), responsible for the
operation of the Day Ahead and Intraday
Markets for electricity. EPİAŞ is expected to
start its operations in 2014. Borsa İstanbul
will hold 30% stake of EPİAŞ and will also
operate markets for standardized power
contracts and power derivatives.
• To further contribute to the Borsa İstanbul’s
vision to become a financial supermarket
and to address the needs of all related
financial and non-financial parties, Borsa
Istanbul has taken a vital step to develop
a market for metal products. With an aim
to better address the potential, meetings
have been conducted and ideas have been
exchanged with all related parties. The
consultation is still in progress. The market
is expected to commence with a cash-
settled contract and then a physically-settled
contract on steel products.
CAPITAL MARKET DEVELOPMENT
AND ECONOMIC OUTLOOK
Turkey’s average growth rate was around 5%
between 2002 and 2012; it is estimated to have
been realized as 3.8% in 2013, the second
highest in Europe for the year. According to
OECD estimations Turkey will rank 4th in the
world in terms of growth rate with 5.1% for the
period 2013-2018. Annual inflation rate was
7.4% and unemployment rate was 9.9% in 2013.
Exports reached to USD 151.8 billion while
imports amounted to USD 251.6 billion in 2013.
Net FDI inflows in the first 11 months of 2013,
decreased by 11% to USD 8.4 billion compared
to the same period in previous year.
In terms of Capital Markets; national savings
to GDP ratio remained below average with
12.6% pointing to potential for further growth.
Market capitalization to GDP ratio of around
40% is another indicator of growth potential in
Turkish capital markets. To realize this potential
a number of steps have been taken; including
introduction of a new private pension fund
scheme with attractive incentives for investors,
and ongoing facilitation of IPO campaign.
Series of structural changes have taken place
in the exchange sector in line with the new
Capital Market Law introduced by the end of
2012. Borsa İstanbul was launched in April
2013 as a demutualized, integrated, multi-asset
class exchange positioned to serve issuers,
investors and traders globally. Transformations
through vertical and horizontal integration,
diversification of financial products and
improved technology infrastructure, paved the
way for a more effective and efficient capital
market environment in Turkey.
Yearly total traded value of equity market was
USD 430 billion, the average daily traded value
of equities amounted to USD 1.7 billion. The
market capitalization of 419 traded companies
reached to USD 238 billion. Annual traded value
of Debt Securities Market was USD 3,623 billion,
the average daily traded value of debt securities
was USD 14.4 billion. 18 companies offered
their stocks to public for the first time in 2013.
The amount of funds raised through 18 IPOs
was USD 755 million.
Key Information Contacts
Capital Markets Board of Turkey www.cmb.gov.tr
İMKB Settlement and Custody Bank Inc. (Takasbank) www.takasbank.com.tr
Merkezi Kayıt Kuruluşu www.mkk.com.tr
The Association of Capital Market Intermediary Institutions of Turkey www.tspakb.org.tr
The Turkish Derivatives Exchange (TurkDEX) www.turkdex.org.tr
CONTACT INFORMATION
Contact Name Mr. Mahmut Aydoğmuş E-mail [email protected] Website www.borsaistanbul.com
PAGE 34