Capital Markets Board's Announcement Regarding the Ratio of the Total Derivative Transactions to Equity

The Capital Markets Board (“CMB”) announced the decisions resolved at its meeting dated 13.04.2020 to manage the risks that COVID-19 outbreak caused in the global market (“Announcement”).

In this context, the ratio of the total derivative transactions having foreign currency on the one end and TRY on the other, conducted by the capital market institutions with foreign residents in the direction of selling or purchase TL at the maturity, to the equity was redetermined.

In this context, it was resolved that the total derivative transactions to be made by the capital market institutions in the direction of TRY purchase is limited to 1% of the equity amounts indicated in the capital adequacy tables prepared as of the end of the previous month, the ratio is  monitored on a daily basis, and any new transactions cannot to be conducted until the existing excesses is eliminated, and the matured transaction cannot be renewed.

The ratio of the total derivative transactions to be made by the capital market institutions in the direction of TRY selling to the equity (calculated as stated above), shall not exceed the following ratios on any calendar day;

  • 1% for transactions having 7 days to maturity,
  • 2% for transactions having 30 days to maturity and
  • 10% for transactions having 1 year to maturity.

The written approval of the CMB must be obtained in the event that the transactions in subject are to be disrupted or extended, for whatever reason, prior to the agreed term.

Please find the Turkish version of the Announcement here.