Borsa Istanbul implements uptick rule on short selling G today

Borsa Istanbul implements uptick rule on short selling G today

Borsa Istanbul has introduced significant changes to its trading rules, effective September 1, 2025. The most notable adjustment is the implementation of the uptick rule for short selling. This rule requires that short sales be executed at a price higher than the last trade, aiming to curb excessive market volatility.

The uptick rule was previously triggered if the BIST 100 index fell by 3%, but this threshold has been lowered to 2% under the new framework. This change comes as the BIST 100 index reached new all-time highs, supported by continued foreign inflows, and is aimed at maintaining positive investor sentiment amid accelerating capital inflows [1].

The uptick rule was temporarily prohibited in March following a market downturn. The ban was extended three times but expired on August 29, 2025, as the Capital Markets Board did not extend it. The reintroduction of the rule is a strategic move to manage market volatility and align with international standards [1].

These changes are part of a broader set of revisions to the exchange's circuit breaker system. The index-based circuit breaker, which halts trading to prevent excessive market volatility, will shift from a two-stage system to a single stage. Trading will be interrupted once the index records a 6% decline in a day, and the mandatory cooling-off period following such halts will be reduced by 10 minutes [1].

Additionally, Borsa Istanbul is preparing for a transition to a shorter settlement cycle known as "T+1," which will align with major international markets. This move aims to reduce counterparty risk and enhance market efficiency [1].

The implementation of these new rules underscores Borsa Istanbul's commitment to maintaining a stable and efficient market environment, thereby fostering investor confidence and promoting sustainable growth.

References:
[1] https://www.turkiyetoday.com/business/istanbul-exchange-to-implement-new-short-selling-circuit-breaker-rules-sep-1-3206209