Turkey halts short selling
02 March 2020 Turkey
Image: Shutterstock
The Turkish Capital Markets Board (CMB) has announced a temporary ban on securities lending on Friday, thereby prohibiting investors from short selling stocks traded on the Istanbul Stock Exchange.
Turkish regulators were reacting a more than 10 percent fall in the country's stock market and a significant weakening of the lira, sparked by an airstrike in Idlib, Syria, which killed 34 Turkish soldiers.
Geopolitical concerns are also being compounded by the on-going battle against the coronavirus which is spreading the potentially deadly disease COVID-19 around the world.
The CMB said on Friday that the one-day ban applied all shares listed on the exchange and would prop up the faltering stock market. The regulator has taken similar steps previously during times of market volatility.
The securities excluded from margin trading and short selling are subsequently subjected to the regulations of the temporary list until the end of the three-month period.
A consolidated table of the measures relating to margin trading & short selling in the equity market has been posted on the Borsa Istanbul website.
Turkish regulators were reacting a more than 10 percent fall in the country's stock market and a significant weakening of the lira, sparked by an airstrike in Idlib, Syria, which killed 34 Turkish soldiers.
Geopolitical concerns are also being compounded by the on-going battle against the coronavirus which is spreading the potentially deadly disease COVID-19 around the world.
The CMB said on Friday that the one-day ban applied all shares listed on the exchange and would prop up the faltering stock market. The regulator has taken similar steps previously during times of market volatility.
The securities excluded from margin trading and short selling are subsequently subjected to the regulations of the temporary list until the end of the three-month period.
A consolidated table of the measures relating to margin trading & short selling in the equity market has been posted on the Borsa Istanbul website.
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