turkish capital markets - tspb · • it is a self-regulatory professional organization in the...
TRANSCRIPT
Turkish Capital Markets May 2016
38
2
Turkey at a Glance
Turkish Capital Markets Association
Investment Institutions
Structure of the Turkish Financial Markets
Turkish Capital Markets
Investor Profile
CONTENTS
3
28
55
16
81
TURKEY AT A GLANCE
LOCATION
4
POLITICS
• The Republic of Turkey, founded in 1923, is a parliamentary democracy.
• Latest general elections were held in November 2015.
• The composition of the Grand National Assembly is as follows, as of April 2016.
5
317133
59
40
1
Justice and Development
Party (Right)
Republican People's Party(Left)
Peoples' Democratic Party
(Left)
Nationalist Movement Party
(Nationalist)
Independent MPs
SOVEREIGN FOREIGN CURRENCY RATINGS (LONG TERM)
6
Source: UNCTAD, Treasury The credit ratings of Turkey are highlighted in red.
S&P Moody's Fitch
Investment-Grade Ratings
Highest Credit Quality AAA Aaa AAA
High Credit Quality AA Aa AA
Strong Payment Capacity A A A
Adequate Payment Capacity BBB Baa BBB-
Speculative-Grade Ratings
BB+ Ba1 BB+
BB Ba2 BB
BB- Ba3 BB-
B+ B1 B+
B B2 B
B- B3 B-
CCC+ Caa1 CCC+
CCC Caa2 CCC
CCC- Caa3 CCC-
CC CC
Default C, D Ca, C C, D
Speculative, Credit Risk
Developing due to Economic
Changes
High Speculative, Credit Risk
Present with Limited Margin
Safety
High Default Risk,
Capacity Depending on
Sustained Favourable
Conditions
POPULATION
7
As of 2015:
• Population: 78.7 million
• Median age: 1
• Labour force: 29.7 million, participation rate: 51.3%
• Unemployment rate: 10.3%.
GROSS DOMESTIC PRODUCT (BILLION $)
8
Source:TurkStat
526
649
742
617
732774
786823
799
720
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
REAL GDP GROWTH
9
Source:TurkStat
6.9%
4.7%
0.7%
-4.8%
9.2% 8.8%
2.1%
4.2%
3.0%
4.0%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
WORLD GDP RANKINGS (2015, BILLION $)
10
Source: IMF-WEO October 2015, TurkStat
720
0 600 1,200 1,800 2,400 3,000
USAChinaJapan
GermanyUK
FranceIndiaItaly
BrazilCanada
KoreaAustralia
RussiaSpain
MexicoIndonesia
NetherlandsTurkey
SwitzerlandSaudi Arabia
ArgentinaTaiwanNigeria
SwedenPoland
BelgiumNorway
IranThailand
AustriaUAE
South AfricaMalaysia
Hong KongPhilippines
Rank: 18th
ANNUAL INFLATION (%)
11
Source:TurkStat
-5
0
5
10
15
20
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
CPIPPI
FISCAL BALANCE
12
Source:MoF
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Interest Expenditure/GDP Budget Balance/GDP Primary Balance/GDP
PUBLIC DEBT (EU DEFINED PUBLIC DEBT/GDP)
13
Source: Treasury
47%
40% 40%
46%42%
39%36% 36%
34% 33%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
FOREIGN TRADE
14
Source: TurkStat
0%
10%
20%
30%
40%
50%
60%
0
50
100
150
200
250
300
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Exports Imports X+M/GDP
Billion $
CURRENT ACCOUNT BALANCE
15
Source: CBRT
-80
-60
-40
-20
0
20
40
60
80
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Current Account Financial Account Chg. in Reserves
Bn. $
STRUCTURE OF THE TURKISH CAPITAL MARKETS
CAPITAL MARKETS BACKGROUND
1982: Capital Markets Board established. 1985: Istanbul Stock Exchange (ISE) established. 1992: Takasbank (Settlement & Custody Bank) established. 1995: Istanbul Gold Exchange (IGE) established. 1997: Banks are forbidden to trade equities. 2001: Association of Capital Markets Intermediary Institutions of Turkey established. Central Registry Agency established. Investors' Protection Fund established. 2002: Private pension system introduced. 2005: IFRS adopted for financial intermediaries and listed companies. Turkish Derivatives Exchange (TurkDex) established. Dematerialization of equities completed. 2006: Dematerialization of corporate bonds & mutual funds completed. 2009: Automated Disclosure Platform introduced. Istanbul International Financial Centre strategy announced. 2011: Forex regulation passed. 2012: New Capital Markets Law passed. ISE demutualised and merged with IGE under Borsa Istanbul. 2013: Borsa Istanbul announced strategic partnership with Nasdaq. Borsa Istanbul and TurkDex merged. 2014: The structure of the Association has changed and the membership base was expanded to cover asset management companies and investments trusts, in addition to brokerage firms and banks. The name of the Association was revised to Turkish Capital Markets Association. 2015: Electronic Fund Distribution Platform (TEFAS) began to operate. Borsa Istanbul started to perform Equity Market Transactions on BISTECH Trading Platform.
17
REGULATORY STRUCTURE OF THE FINANCIAL MARKETS
18
Banking Capital Markets Insurance
Banking Regulation and Supervision Agency (BRSA)
Capital Markets Board (CMB) Undersecretariat of Treasury
-Banks’ Association of Turkey -Participation Banks’ Association of Turkey-Association of Financial Institutions
-Banks-Participation Banks-Savings Deposit Insurance Fund-Leasing Companies-Factoring Companies
-Consumer Finance Companies-NPL Management Companies
-Turkish Capital Markets Association-Borsa Istanbul
-Banks-Brokerage Firms-Asset Management Firms-Investment Trusts-Central Registry Agency
-Settlement and Custody Bank-Capital Markets Licensing and Training Agency-Investor Compensation Center-Public and Listed Companies
-Rating, Appraisal, Audit Firms
-Insurance Association of Turkey
-Insurance Companies-Private Pension Companies-Private Pension Funds
CAPITAL MARKET INSTITUTIONS IN TURKEY
19
Rating Co.
Ind. Audit Co.
Settlement & Custody Bank (Takasbank)
Capital Markets Board
Banks Brokerage Firms
Inv. Trusts
Asset Mgmt. Co.
TCMA(SRO)
Borsa Istanbul
Central Registry Agency
Public Co.
Listed Co.
Licensing and Training Agency
CAPITAL MARKETS BOARD
20
• Capital Markets Board (CMB) is the main regulatory and
supervisory authority for the securities markets and institutions
in Turkey.
• The Board is responsible for the protection of rights and
interests of investors.
• The CMB’s jurisdiction areas:
o Primary markets,
o Secondary markets,
o Investment services.
BORSA ISTANBUL
21
• Borsa Istanbul, formerly named as Istanbul Stock
Exchange, was established in 1985.
• The exchange was demutualised in 2013.
• The exchanges operating in Turkey, namely Istanbul Stock
Exchange, Istanbul Gold Exchange and the Turkish
Derivatives Exchange merged under the roof of Borsa
Istanbul.
• Borsa Istanbul and NASDAQ OMX signed a partnership
agreement in 2013. Technological infrastructure is
provided by NASDAQ OMX.
• European Investment Bank acquires a 10% share in 2015.
BORSA ISTANBUL
22
• The main markets and the traded securities on Borsa Istanbul
are:
o Equity Market: Shares, rights coupons, ETFs, warrants, certificates.
o Debt Securities Market: Government bonds, corporate bonds, asset
backed securities, Islamic bonds, repo-reverse repo transactions,
Turkish eurobonds.
o Derivatives Market: Single stock, equity index, gold, currency,
commodity, overnight repo, metal, ETF and power futures. Single
stock, currency, equity index and mini index options.
o Precious Metals and Diamond Market: Gold, silver, platinum and
palladium.
TAKASBANK (ISTANBUL SETTLEMENT AND CUSTODY BANK)
23
• Takasbank was established in 1988 as a department of Borsa Istanbul. It
was incorporated as a separate company in 1992 and became a non-
deposit taking bank in 1995.
• Takasbank is:
o The clearing and settlement centre for Borsa Istanbul,
o The central counterparty (CCP) for Borsa Istanbul Futures & Options
Market,
o The national numbering agency of Turkey.
• It operates a money market.
• Takasbank operates the Securities Lending & Borrowing Market and acts
as the CCP for this market.
• The Bank allocates the legal entity identifier codes.
• It operates the Electronic Fund Distribution Platform (TEFAS).
• It records leveraged transactions and handles collateral management as
an authorized trade repository institution.
CENTRAL REGISTRY AGENCY
24
• Central Registry Agency (CRA) was established in 2001 as a
private company.
• CRA is the only central depository for all dematerialized capital
market instruments.
• The dematerialization process is completed for equities, mutual
funds, corporate bonds, warrants, certificates, asset backed
securities and investors’ (excluding investment institutions)
government debt holdings.
INVESTOR COMPENSATION CENTRE
25
• Investors’ Protection Fund, which covered equity settlement
obligations, was established in 2001.
• Investor Compensation Centre replaced the Investors’
Protection Fund in 2013 with the renewed Capital Market Law.
• It covers settlement obligations of all capital market
instruments, up to TL 100,000 (~$ 34,000) in 2015, in case of
liquidation or bankruptcy of investment institutions.
• All investment institutions have to be a member of the Investor
Compensation Centre.
ACTIVITIES OF INTERMEDIARIES
26
• Equity Trading
• Leveraged FX trading
• Public Offering
• Asset Management
• Investment Consultancy
• Fixed Income Trading
• Derivatives Trading (exc. equity-linked
products for banks) BANKS
BROKERAGE
FIRMS
TYPES OF BROKERAGE FIRMS
27
Market
Makers
Execution
Brokers
Introducing
Brokers
• execution of orders from their
own account by positioning their
customers as counterparty
• minimum capital: TL 25 million
(~$ 8.9 million).
• execution of orders of in the name
of customers and/or their own
account
• offering custody services
• minimum capital: TL 10 million (~$ 3.6 million).
• reception of orders and
transfer them to other brokers
• minimum capital: TL 2 million
(~$ 710,000).
TURKISH CAPITAL MARKETS ASSOCIATION
TCMA
29
• Founded in April 2001.
• It is a self-regulatory professional organization in the Turkish
capital markets.
• The structure of the Association was changed and its name was
revised to Turkish Capital Market Association in 2014, in line
with the new Capital Markets Law.
• TCMA is under CMB supervision.
• Association has 234 members as of April 2016; 90 brokerage
firms, 44 banks, 52 portfolio management companies, 9
securities investment trusts, 31 real estate investment trusts
and 8 venture capital investment trusts.
AIMS
30
• Contribute to the development of the capital market
• Meet the collective needs of members and facilitate solidarity
among its members,
• Prevent unfair competition between its members,
• Enhance know-how in the sector.
FUNCTIONS
31
• Establish code of ethics for the profession,
• Establish professional rules and regulations,
• Conduct research,
• Offer educational programs,
• Assist in the resolution of disputes,
• Cooperate with related foreign institutions,
• Engage in financial literacy activities.
ORGANISATION
32
DEPARTMENTS
• Monitors and inspects the activities of the members.
• Monitors related regulations, makes proposals for changes in the existing or draft regulations.
• Provides legal advisory services.
• Conducts necessary legal investigations about the applications and complaints made to the Association.
• Keeps record of disciplinary action of the members.
• Assists in the resolution of disputes.
33
Compliance and Surveillance
Legal Affairs
DEPARTMENTS
• Gathers statistical data on members and produces periodic reports.
• Publishes research to enhance the development of the capital markets.
• Represents the Association at international institutions.
• Prepares training programs towards professional development of industry professionals.
34
Research and Statistics
Training
Membership Affairs
• Examines applications for membership, keeps detailed records of members and provides advice on members to the Association.
DEPARTMENTS
• Manages media correspondence and public relations.
• Promotes investor education activities of the Association.
• Manages the administrative,
accounting and personnel
operations of the Association.
35
Corporate Communications
HR, Administrative and
Financial Affairs
Information Technology
• In charge of the IT backbone of the Association.
INTERNATIONAL MEMBERSHIPS
36
• Asia Securities Forum (ASF) member since 2009.
• Asia Forum for Investor Education (AFIE) founding member
since 2010.
• Federation of Euro-Asian Stock Exchanges (FEAS) affiliate
member since 2009.
• International Council of Securities Associations (ICSA) member
since 2006.
• International Forum for Investor Education (IFIE) member
since 2009.
• International Organization of Securities Commissions (IOSCO)
affiliate member since 2003.
PARTICIPATIONS
37
CENTRAL REGISTRY AGENCY
• 5% stake
• one seat at the board of directors, out of 8 members
BORSA ISTANBUL
• 1.3% stake
• one seat at the board of directors, out of 10 members
CAPITAL MARKETS LICENSING & TRAINING AGENCY
• 49% stake
• 2 seats at the board of directors, out of 7 members
TURKISH CAPITAL MARKETS
BIST-100 INDEX & TRADING VOLUME
39
Source: Borsa Istanbul
MARKET CAPITALIZATION OF BORSA ISTANBUL (BILLION $)
40
Source: Borsa Istanbul
BREAKDOWN OF BORSA ISTANBUL MARKET CAPITALIZATION
41
Source: Borsa Istanbul
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2011 2012 2013 2014 2015
Technology
Financials
Services
Industrials
7,2814,8954,549
17,787
189
0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000
NYSENasdaq OMX
TokyoShanghai
London GroupShenzhenEuronext
Hong KongDeutsche
TMXSwiss
BSE IndiaNSE India
OMX NordicSouth Korea
AustraliaSpain
TaiwanJSE
SingaporeBrazil
Saudi ArabiaMexico
MoscowMalaysia
IndonesiaThailandTel Aviv
PhilippinesOslo BorsSantiago
Borsa IstanbulQatar
WarsawIrish
DOMESTIC MARKET CAPITALIZATION (2015, BILLION $)
42
Source: WFE WFE definition excluding investment funds, ETFs, unit trusts, unlisted companies,
holding companies with a mere business of holding shares on the exchange.
Rank: 32nd
25%
0% 40% 80% 120% 160% 200%
Hong KongJSE
SwissSingapore
TaiwanMalaysia
TokyoOMX Nordic
TMXNYSE
AustraliaThailand
South KoreaEuronext
London GroupTel Aviv
LuxembourgPhilippines
SantiagoQatar
BSE IndiaMuscat
NSE IndiaSaudi Arabia
SpainMauritius
BahrainIrish
DeutscheOslo Bors
MaltaCasablanca
New ZealandAmman
Nasdaq OMXIndonesiaShanghai
MexicoAbu DhabiShenzhen
MoscowLima
ColombiaWarsaw
BrazilColombo
HoChiMinhWiener
Borsa Istanbul
MARKET CAPITALIZATION/GDP (2015)
43
Source: WFE, IMF
Rank: 49th
NUMBER OF SECURITIES IN EQUITY MARKET
44
Source: Borsa Istanbul
Equities: BIST Main+BIST Star+REITs+Venture Capital Investment Trusts
Other Equities: BIST Emerging Companies, Watchlist,
Pre-market Trading Platform
324 348 352 348 341
1340 56 65 6738
34 30 24 22175
231 328
640
846
2011 2012 2013 2014 2015
Warrants+Certificate
ETF+Inv. Trusts
Other Equities
Equities
5,8363,6513,5593,513
393
0 500 1,000 1,500 2,000 2,500 3,000
BSE IndiaSpainTMX
TokyoNasdaq OMX
London GroupNYSE
AustraliaSouth KoreaHong KongShenzhenShanghaiEuronextWarsawMalaysia
TaiwanOMX Nordic
SingaporeTaipei
ThailandDeutscheIndonesia
Tel AvivBorsa Istanbul
JSEBrazil
TehranSantiago
LimaHoChiMinhColombo
SwissPhilippines
MoscowEgypt
NUMBER OF LISTED COMPANIES (2015)
45
Source: WFE WFE definition excludes investment funds, ETFs, unit trusts, unlisted companies, holding companies with a mere business of holding shares on the exchange.
Rank: 24th
EQUITY TRADING VOLUME OF BORSA ISTANBUL (BILLION $)
46
Source: Borsa Istanbul
32,98420,50219,99118,87814,217
351
0 2,000 4,000 6,000 8,000 10,000
Nasdaq OMXShanghai
NYSEShenzhenBATS US
BATS Chi-x EuropeTokyo
London GroupEuronext
Hong KongSouth Korea
DeutscheMexico
TMXSwissSpain
AustraliaOMX Nordic
NSE IndiaTaiwan
Saudi ArabiaBrazil
Borsa IstanbulJSE
MoscowThailand
SingaporeTaipei
Oslo BorsMalaysia
BSE IndiaIndonesia
Tel AvivWarsaw
Irish
EQUITY TRADING VOLUME (2015, BILLION $)
47
Source: WFE WFE definition excludes investment funds, ETFs, unit trusts, holding companies with a mere business of holding shares on the exchange.
Negotiated deals are included.
Rank: 23rd
519%453%451%290%208%
186%
0% 40% 80% 120% 160% 200%
ShenzhenNasdaq OMX
ShanghaiMexicoTaipei
Borsa IstanbulSouth Korea
SpainTokyoNYSE
London GroupSaudi Arabia
EuronextDeutsche
BrazilTaiwan
ThailandMoscow
AustraliaHong Kong
SwissTMX
OMX NordicOslo Bors
DubaiAthens
JSENSE India
WarsawHungary
HoChiMinhNew Zealand
Irish
TURNOVER RATIO (EQUITY TRADING VOLUME/MARKET CAPITALIZATION - 2015)
48
Source: WFE
Rank: 6th
SECURITIES LENDING/BORROWING IN BORSA ISTANBUL (MILLION $)
49
Source: Borsa Istanbul
1,6101,639 1,613
2,878
2,097
2011 2012 2013 2014 2015
SHORT SELLING IN BORSA ISTANBUL
50
Source: Borsa Istanbul
22 19 51 63 66
6% 5%
12%
16%
17%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
0
4
8
12
16
20
24
28
32
36
40
44
48
52
56
60
64
68
72
2011 2012 2013 2014 2015
Short Selling Volume (Bn. $)
Share in Total Volume
FUTURES TRADING VOLUME OF BORSA ISTANBUL (BILLION $)
51
Source: Borsa Istanbul, TurkDex Security expiry transactions are included. .
265 226 220 199 209
74
62
53
5963
2011 2012 2013 2014 2015
Trading Volume (Billion. $)
No. of Contracts (Million)
879,62485,35364,38247,327
209
0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000
CME GroupICE (Europe)CFFEX- China
Deutsche BörseBM&FBOVESPA
ASX SFE DerivativesMontreal
KoreaLME-LondonShanghai FE
Tokyo SEOsaka
ICE (US)Dalian CE-China
Hong KongZhengzhou CE
NSE-IndiaTAIFEX
OMX NordicMoscow
JSESpain
EuronextBSE India
Borsa IstanbulMalasysia DE
Mexican DEColombia
WarsawICE (Canada)
ASX GroupOslo
AthensBudapest SE
NZX Ltd
TRADING VOLUME IN FUTURES MARKETS (2015, BILLION $)
52
Source: WFE
Rank: 25th
NUMBER OF LISTED CORPORATE BONDS IN BORSA ISTANBUL
53
Source: WFE
42
192
299
436464
2011 2012 2013 2014 2015
464
0 1,000 2,000 3,000 4,000 5,000 6,000
London GroupSouth KoreaOMX Nordic
EuronextBSE India
IrishNSE India
SpainShanghai
WienerOslo Bors
JSEBuenos Aires
TaipeiMoscowTel Aviv
SwissHong Kong
ColombiaBorsa Istanbul
WarsawLima
BrazilShenzhen
KazakhstanHungary
ColomboNew Zealand
MaltaThailand
CasablancaLjubljanaMalaysia
TokyoMauritius
7,021
9,905
NUMBER OF LISTED CORPORATE BONDS (2015)
54
Source: WFE
Rank: 20th
INVESTMENT INSTITUTIONS
INVESTMENT INSTITUTIONS
56
Source: TCMA
102 101 100 9790
40 41 41 4344
2011 2012 2013 2014 2015
Banks Brokerage Firms
142142
134141 140
FIXED INCOME TRADING VOLUME OF INTERMEDIARIES (BILLION $)
57
Source: Borsa Istanbul
941 932 888
521
346
7654
75
53
2011 2012 2013 2014 2015
Brokerage Firms Banks
9861,017
963
574
389
REPO-REVERSE REPO TRADING VOLUME OF INTERMEDIARIES (BILLION $)
58
Source: Borsa Istanbul
3,897
6,6586,009 6,044
5,400
675
758
660 638
593
2011 2012 2013 2014 2015
Brokerage Firms
Banks 7,416
6,669 6,682
4,572
1,6355,933
EQUITY TRADING VOLUME OF INTERMEDIARIES (BN. $)
59
Source: Borsa Istanbul
848
697
863
798761
2011 2012 2013 2014 2015
FUTURES TRADING VOLUME OF INVESTMENT INSTITUTIONS (BILLION $)
60
Source: Borsa Istanbul, TurkDex
453
399 395 395 416
78
53 45
2011 2012 2013 2014 2015
Banks Brokerage Firms
9886598865 529
451 440
397
417
FOREX TRADING VOLUME (BILLION $)
61
Source: TCMA
110
795
1,5461,991
3,492
73
524
1,027
1,526
2,732
2011 2012 2013 2014 2015
Liquidity Provider Client
1,320
183183
2,753
3,516
6,224
CONCENTRATION IN TRADING VOLUMES (2014)
62
Source: Borsa Istanbul, TurkDex, TCMA
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Equity Fixed Income Futures Forex
51+ 21-50 11-20 1-10No. of IntermediariesNo. of Intermediaries
TOP 10 MEMBERS IN THE MARKETS (2015)
63
Source: Borsa Istanbul, TCMA
1 İŞ YATIRIM MENKUL DEĞERLER A.Ş. 8% 1 İŞ YATIRIM MENKUL DEĞERLER A.Ş. 11%
2 YAPI KREDİ YATIRIM MENKUL DEĞERLER A.Ş. 7% 2 TEB YATIRIM MENKUL DEĞERLER A.Ş. 11%
3 GARANTİ YATIRIM MENKUL KIYMETLER A.Ş. 7% 3 GARANTİ YATIRIM MENKUL KIYMETLER A.Ş. 7%
4 DENİZ YATIRIM MENKUL KIYMETLER A.Ş. 5% 4 YAPI KREDİ YATIRIM MENKUL DEĞERLER A.Ş. 5%
5 AK YATIRIM MENKUL DEĞERLER A.Ş. 4% 5 SANKO MENKUL DEĞERLER A.Ş. 4%
6 GEDİK YATIRIM MENKUL DEĞERLER A.Ş. 4% 6 DENİZ YATIRIM MENKUL KIYMETLER A.Ş. 4%
7 TEB YATIRIM MENKUL DEĞERLER A.Ş. 4% 7 GEDİK YATIRIM MENKUL DEĞERLER A.Ş. 4%
8 MEKSA YATIRIM MENKUL DEĞERLER A.Ş. 4% 8 YATIRIM FİNANSMAN MENKUL DEĞERLER A.Ş. 4%
9 FİNANS YATIRIM MENKUL DEĞERLER A.Ş. 4% 9 DEUTSCHE SECURITIES MENKUL DEĞERLER A.Ş. 4%
10 BURGAN YATIRIM MENKUL DEĞERLER A.Ş. 3% 10 AK YATIRIM MENKUL DEĞERLER A.Ş. 3%
Total (bn. $) 761 Total (bn. $) 417
Fixed Income Market Forex Market
1 AKBANK T.A.Ş. 29% 1 GCM MENKUL KIYMETLER A.Ş. 12%
2 GARANTİ BANKASI A.Ş. 7% 2 IŞIK MENKUL DEĞERLER A.Ş. 9%
3 YAPI VE KREDİ BANKASI A.Ş. 7% 3 INVEST-AZ MENKUL DEĞERLER A.Ş. 8%
4 J.P. MORGAN CHASE BANK İSTANBUL 6% 4 GEDİK YATIRIM MENKUL DEĞERLER A.Ş. 8%
5 HSBC BANK A.Ş. 6% 5 DESTEK MENKUL DEĞERLER A.Ş. 7%
6 DENİZBANK A.Ş. 6% 6 İŞ YATIRIM MENKUL DEĞERLER A.Ş. 6%
7 CITIBANK A.Ş. 4% 7 SANKO MENKUL DEĞERLER A.Ş. 5%
8 TÜRKİYE İŞ BANKASI A.Ş. 3% 8 İNTEGRAL MENKUL DEĞERLER A.Ş. 5%
9 DEUTSCHE BANK A.Ş. 3% 9 IKON MENKUL DEĞERLER A.Ş. 5%
10 TÜRK EKONOMİ BANKASI A.Ş. 3% 10 ALB MENKUL DEĞERLER A.Ş. 4%
Total (bn. $) 389 Total (bn. $) 6,224
NUMBER OF FINALIZED CORPORATE FINANCE DEALS (BROKERAGE FIRMS ONLY)
64
Source: TCMA
49
175
284
465
608
54
47
43
63
34
95
114
34
83
87
28
3221
14
24
1621
14
11
2011 2012 2013 2014 2015
Privatization
M&A
IPO&SPO-Equities
Corporate Actions
Other Consultancy
Bond Issuance
409393
255
644
746
INITIAL PUBLIC OFFERINGS
65
Source: Borsa Istanbul
842 362 758 320 45
27
30
19
13
6
2011 2012 2013 2014 2015
IPO Volume (Mn. $)
No. of IPOs
PRIVATE DEBT SECURITIES ISSUES
66
Source: Borsa Istanbul
11
23
2930
29
58
235
330
508
621
2011 2012 2013 2014 2015
Size of Private Debt Securities Issued (bn. $)
No. of Private Debt Securities Issued
INSTITUTIONAL INVESTMENTS (BILLION $)
67
Source: Borsa Istanbul, CMB
16 1714 14 13
8
11
1216
16
0.3
0.3
0.2
0.10.1
6
9
9
9
7
0.4
0.5
0.5
0.6
0.5
2011 2012 2013 2014 2015
Venture Capital Inv. Trusts
REITs
Investment Trusts
Pension Funds
Mutual Funds
30
3841
37
36
ASSET MANAGEMENT BY BROKERAGE FIRMS
68
Source: TCMA
1,872 2,101 2,049 2,310 434
1,873
2,511
2,753
2,9232,649
2011 2012 2013 2014 2015
Assets Under Management (Mn. $)
No. of Investors
ASSET MANAGEMENT BY ASSET MANAGEMENT COMPANIES
69
Source: CMB, TCMA
25,333 31,710 30,330 35,153 34,604
1,745
2,1182,283
2,422
2,861
0
500
1,000
1,500
2,000
2,500
3,000
3,500
2011 2012 2013 2014 2015
Assets Under Management (Mn. $)
No. of Investors
MARGIN TRADING
70
Source: TCMA
437 598 759 493 516
10,964
11,462
10,417
9,914
9,539
2011 2012 2013 2014 2015
Outstanding Loan Size (Mn. $)
No. of Investors
BROKERAGE FIRMS’ BRANCH NETWORK
71
Source: TCMA
6,466 6,684 6,950 7,071
159161
153 150
323
2011 2012 2013 2014 2015
Bank Branches Branches Rep. Offices
6,686
7,2887,174
6,911
5,752
6,151
BROKERAGE FIRMS’ EMPLOYEES
72
Source: TCMA
5,0935,258
5,4805,657
6,638
2011 2012 2013 2014 2015
ASSET MANAGEMENT COMPANIES’ EMPLOYEES
73
Source: TCMA
583
615
698
2013 2014 2015
BANKS’ EMPLOYEES
74
Source: BRSA
195,271 214,226 201,453 216,912 217,504
2011 2012 2013 2014 2015
BALANCE SHEET OF BROKERAGE FIRMS (MILLION $)
75
Source: TCMA
3,868
5,8476,085 6,076
4,881
4,261
6,4166,566 6,503
5,247
1,4661,711
1,566 1,5721,374
2011 2012 2013 2014 2015
Current Assets Total Assets Shareholders' Equity
INCOME STATEMENT OF BROKERAGE FIRMS (MILLION $)
76
Source: TCMA
694
626
733725
736
182
70
119 128111
248
162
278
170 159
2011 2012 2013 2014 2015
Total Revenues Operating Profit Net Profit
BREAKDOWN OF BROKERAGE FIRMS’ REVENUES
77
Source: TCMA
62% 61% 64% 64% 66%
3%12% 4% 5% 5%8%
8%10% 9% 8%
21%15% 18% 19% 18%
21% 15% 18% 19% 18%
2011 2012 2013 2014 2015
Others Asset Management Corporate Finance Proprietary Trading Profits Brokerage Commissions
BALANCE SHEET OF ASSET MANAGEMENT COMPANIES (MILLION $)
78
Source: TCMA
150
160 162162
176 174
145
156 156
2013 2014 2015
Current Assets Total Assets Shareholders' Equity
INCOME STATEMENT OF ASSET MANAGEMENT COMPANIES (MILLION $)
79
Source: TCMA
108105
109
3432 3231 32 33
2013 2014 2015
Total Revenues Operating Profit Net Profit
BREAKDOWN OF ASSET MANAGEMENT COMPANIES’ REVENUES
80
Source: TCMA
59% 58% 60%
25% 30%31%
13% 11%9%
2013 2014 2015
Fund Sales Financial Advisory Discretionary Asset Mgmt.
Pension Fund Mgmt. Mutual Fund Mgmt.
INVESTOR PROFILE
BREAKDOWN OF TOTAL SAVINGS (BILLION $)
82
Source: BRSA, CRA, TCMA estimates
368434 444 452
427
205
267 220 222
179
74
120
92107
78
2011 2012 2013 2014 2015
Equities
Fixed Income
Deposits
756781
683
821
647
SAVINGS OF DOMESTIC INVESTORS
83
Source: BRSA, CRA, TCMA estimates Total Domestic Inv. Savings as of
December 2015: US$ 571bn
64% 63%68% 67% 70%
31% 31%27% 27% 25%
5% 6% 6% 6% 5%
2011 2012 2013 2014 2015
Equities
Fixed Income
Deposits
SAVINGS OF FOREIGN INVESTORS
84
Source: BRSA, CRA, TCMA estimates Total Foreign Inv. Savings as of December 2015: US$ 112 bn
15% 12%19% 18%
26%
36%39%
39%36%
32%
48% 49%42%
46% 43%
2011 2012 2013 2014 2015
Equities
Fixed Income
Deposits
NUMBER OF EQUITY INVESTORS
85
(thou.) 2012 2013 2014 2015
Domestic Investors 1,080.3 1,100.9 1,065.5 1,049.6
1,075.4 1,095.2 1,059.6 1,044.0
4.3 5.1 5.2 5.0
0.6 0.6 0.7 0.7
Foreign Investors 8.3 9.6 9.9 9.7
For. Individuals 4.8 6.0 6.2 6.2
For. Corporations 1.3 1.3 1.4 1.5
For. Institutionals 2.2 2.3 2.3 2.1
Total 1,088.6 1,110.4 1,075.4 1,059.3
Number of Equity Investors
Dom. Individuals
Dom. Corporations
Dom. Institutionals
Source: CRA
BREAKDOWN OF MARKET CAPITALIZATION (BILLION $)
86
Source: CRA, Borsa Istanbul
28 41 34 39 29
46
7957
68
48
128
191
145
163
113
2011 2012 2013 2014 2015
Privately Held Foreigners' Portfolio Domestics' Portfolio
202
237
270
311
190
SHARE OF FOREIGN INVESTORS
87
Source: CRA, Borsa Istanbul
0%
4%
8%
12%
16%
20%
24%
28%
32%
0%
10%
20%
30%
40%
50%
60%
70%
80%
2011 2012 2013 2014 2015
Share in Free Float Mcap Share in Trading Volume
Vol.MCap
EQUITY OWNERSHIP ACCORDING TO INVESTOR CATEGORIES
88
Source: CRA Total equity portfolio as of December 2015: US$ 77.6 bn
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2011 2012 2013 2014 2015
For. Institutional
For. Corporation
For. Individual
Dom. Institutional
Dom. Corporation
Dom. Individual
BREAKDOWN OF EQUITY TRADING VOLUME BY INVESTOR CATEGORIES
89
Source: TCMA
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2011 2012 2013 2014 2015
For. Institutional
For. Corporation
For. Individual
Dom.
Institutional
Dom. Corporation
Dom. Individual
WARRANT OWNERSHIP ACCORDING TO INVESTOR CATEGORIES
90
Source: CRA Total warrant portfolio as of 2015 : US$ 12 mn.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2011 2012 2013 2014 2015
For. Institutional
For. Corporation
For. Individual
Dom. Institutional
Dom. Corporation
Dom. Individual
CORPORATE BOND OWNERSHIP ACCORDING TO INVESTOR CATEGORIES
91
Source: CRA Total corporate bond portfolio as of December 2015: US$ 16.2 bn.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2011 2012 2013 2014 2015
For. Institutional
For. Corporation
For. Individual
Dom. Institutional
Dom. Corporation
Dom. Individual
MUTUAL FUND INVESTORS
92
Source: CRA
15.9 17.2 14.5 15.6 13.3
3.0
2.8
2.8 2.8
2.9
2.6
2.7
2.7
2.8
2.8
2.9
2.9
3.0
3.0
-
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
2011 2012 2013 2014 2015
Portfolio Size (bn. $) Number of Investors (mn.)
PENSION FUND INVESTORS
93
Source: CRA
12.2 16.2 16.4
4.1
5.1
6.0
-
1.0
2.0
3.0
4.0
5.0
6.0
7.0
-
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
2013 2014 2015
Portfolio Size (bn. $)
Number of Investors (mn.)
BREAKDOWN OF FUTURES TRADING VOLUME BY INVESTOR CATEGORIES (BROKERAGE FIRMS ONLY)
94
Source: TCMA
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2011 2012 2013 2014 2015
For. Institutional
For. Corporation
For. Individual
Dom. Institutional
Dom. Corporation
Dom. Individual
FOREX TRADING VOLUME OF BROKERAGE FIRMS
95
Source: TCMA
0%
20%
40%
60%
80%
100%
2011 2012 2013 2014 2015
For. Institutional
For. Corporation
For. Individual
Dom. Institutional
Dom. Corporation
Dom. Individual
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