BIST 50 Introduces 'Up-Tick' Rule for Short Selling

Borsa Istanbul has implemented a new regulation for short selling transactions in stocks traded on the BIST 50 index. Accordingly, short selling orders for these stocks can only be entered at a price above the previous transaction price. The 'up-tick' requirement mandates that investors wishing to short sell must set their selling price at least one tick above the last traded price. This measure aims to limit the downward pressure of short selling on the market. The regulation will apply to stocks within the BIST 50 index. Short selling is known as a type of transaction where an investor borrows an asset they do not own, sells it, and aims to profit by buying it back at a lower price. Market experts note that the up-tick rule may help prevent sharp declines, especially during periods of high volatility. However, there are also views that such restrictions could negatively affect trading volume and liquidity. Not investment advice.