'Uptick Rule' Activated to Counter Market Decline

Following sharp declines in Borsa Istanbul, the Capital Markets Board (SPK) has introduced a new precautionary measure. With this decision, the 'uptick rule,' previously applied under certain conditions, has been reactivated. This rule aims to limit sudden and excessive drops in stock prices. The uptick rule ensures that when a stock's price falls by more than a specified percentage, only orders at a price higher than the previous trade price are accepted. This is intended to prevent panic selling in the market and maintain price stability. The measure is typically activated during periods of high volatility. SPK's move aims to restore investor confidence and control excessive market volatility. Officials stated that the measure is temporary and will remain in effect until market conditions normalize. The decision covers all stocks traded on the exchange. Market experts note that such regulations may alleviate selling pressure in the short term, but more comprehensive steps are needed for a lasting solution. Investors are advised to closely monitor developments and pay attention to risk management. This is not investment advice.