Uptick Rule Introduced for Short Selling on Borsa Istanbul

A new regulation has been implemented for short selling transactions in the equity markets traded on Borsa Istanbul. In line with the decision taken by the Capital Markets Board of Turkey (SPK), the 'uptick rule' has been introduced for short selling in certain stocks. This rule requires short sale orders to be placed only at a price higher than the last traded price. Under the regulation, which applies to stocks in the BIST 100 index, the rule aims to maintain market stability and prevent excessive price declines. According to the SPK's statement, the uptick rule is intended to limit speculative selling pressures, especially during periods of high volatility, thereby increasing investor confidence. The implementation will be in effect during the continuous trading session in Borsa Istanbul's equity market. Investors wishing to short sell will have to enter their orders at a level above the last traded price. This may restrict short selling in stocks with a downward trend, contributing to a more balanced market operation. Authorities stated that administrative fines will be imposed on relevant brokerage firms and investors in case of violation of the rule. It was noted that the regulation covers all short selling transactions, except for exceptional cases such as market-making activities and certain arbitrage transactions. This is not investment advice.