Turkish Capital Markets
June 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 June 2016.
317 133
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
As of 2015:
• Population: 78.7 million
• Median age: 31
• Labour force: 29.7 million, participation rate: 51.3%
• Unemployment rate: 10.3%.
GROSS DOMESTIC PRODUCT (BILLION $)
8
Source:TurkStat 526
649
742
617
732 774 786 823
799
720
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
REAL GDP GROWTH
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
ChinaUSA Japan GermanyAustraliaCanadaMexicoFranceRussiaKoreaSpainBrazilIndiaItalyUK Indonesia NetherlandsSwitzerlandTurkey Saudi ArabiaSouth AfricaHong KongPhilippinesArgentinaThailandMalaysiaBelgiumSwedenNorwayTaiwanNigeriaAustriaPolandIranUAE
Rank: 18th
ANNUAL INFLATION (%)
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)
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
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 Istanbul Gold Exchange 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: Takasbank introduced the Electronic Fund Distribution Platform (TEFAS).
Borsa Istanbul introduced new trading platform for equities (BISTECH).
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
Rating Co.
Ind. Audit Co.
Settlement &
Custody Bank (Takasbank)
Capital Markets Board
Banks Brokerage Firms
Inv. Trusts Asset Mgmt. Co.
(SRO) TCMA 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
• 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 acquired 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)
• 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
• 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 120,823 (~$ 42,000) in 2016, 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
Market Makers
Execution Brokers
Introducing Brokers
• execution of orders from their own account by positioning their customers as counterparty
• minimum capital: TL 25 million (~$ 8.5 million).
• execution of orders of in the name of customers and/or their own
account
• offering custody services
• minimum capital: TL 10 million (~$ 3.5 million).
• reception of orders and
transfer them to other brokers
• minimum capital: TL 2 million (~$ 700,000).
TURKISH CAPITAL MARKETS ASSOCIATION
TCMA
• 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 June 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.
MEMBERS
30
101 102 97 95 89
41 40 43 44
44
41 40 46 52
48 46 47 48
2012 2013 2014 2015 2016/03
Investment Trusts Asset Management Firms
Banks
Brokerage Firms
AIMS
• 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
32
• 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
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.
34
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.
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.
36
Corporate Communications HR, Administrative and Financial Affairs
Information Technology
• In charge of the IT backbone of the Association.
INTERNATIONAL MEMBERSHIPS
• Asia Securities Forum (ASF) member since 2009.
• 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 Forum for Investor Education/Asia Chapter founding member since 2010.
• International Organization of Securities Commissions (IOSCO) affiliate member since 2003.
PARTICIPATIONS
38
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
40
Source: Borsa Istanbul
0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000
20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000
2009/12 2010/03 2010/05 2010/08 2010/10 2011/01 2011/03 2011/05 2011/08 2011/10 2012/01 2012/03 2012/05 2012/08 2012/10 2013/01 2013/03 2013/05 2013/08 2013/10 2014/01 2014/03 2014/05 2014/08 2014/10 2015/01 2015/03 2015/06 2015/08 2015/10 2016/01 2016/03
Trading Volume BIST-100 (TL)
Point Mn. $
MARKET CAPITALIZATION OF BORSA ISTANBUL (BILLION $)
Source: Borsa Istanbul 311
238 270
190
227
2012 2013 2014 2015 2016/03
BREAKDOWN OF BORSA ISTANBUL MARKET CAPITALIZATION
42
Source: Borsa Istanbul
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2011 2012 2013 2014 2015
Technology Financials Services Industrials
7,281 4,895 4,549 17,787 189
0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000
Nasdaq OMXShanghaiTokyoNYSE London GroupSaudi ArabiaSouth KoreaOMX NordicHong KongPhilippinesSingaporeShenzhenNSE IndiaBSE IndiaIndonesiaOslo BorsDeutscheEuronextAustraliaSantiagoMalaysiaThailandTel AvivMoscowTaiwanMexicoSwissSpainBrazilTMXJSE Borsa IstanbulWarsawQatarIrish
DOMESTIC MARKET CAPITALIZATION (2015, BILLION $)
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 KongSingaporeMalaysiaTaiwanTokyoSwissJSE OMX NordicAustraliaThailandNYSETMX South KoreaEuronext London GroupNew ZealandSaudi ArabiaNasdaq OMXLuxembourgCasablancaHoChiMinhPhilippinesAbu DhabiNSE IndiaShenzhenBSE IndiaIndonesiaOslo BorsColomboDeutscheShanghaiColombiaMauritiusSantiagoTel AvivWarsawMoscowBahrainAmmanMuscatWienerMexicoQatarSpainBrazilMaltaLimaIrish Borsa Istanbul
MARKET CAPITALIZATION/GDP (2015)
44
Source: WFE, IMF
Rank: 49th
NUMBER OF SECURITIES IN EQUITY MARKET
Source: Borsa Istanbul
Equities: BIST Main+BIST Star+REITs+Venture Capital Investment Trusts Other Equities: BIST Emerging Companies, Watchlist,
Pre-market Trading Platform
348 352 348 341 338
40 56 65 67 68
34 30 24 22 20
231
328
640
846 872
2012 2013 2014 2015 2016/03
Warrants+Certificate ETF+Inv. Trusts
Other Equities Equities
5,836 3,651 3,559 3,513 393
0 500 1,000 1,500 2,000 2,500 3,000
BSE IndiaTokyoSpainTMX Nasdaq OMX London GroupSouth KoreaOMX NordicHong KongSingaporeShenzhenIndonesiaShanghaiDeutscheEuronextAustraliaMalaysiaThailandTel AvivWarsawTaiwanTaipeiNYSE Borsa IstanbulHoChiMinhPhilippinesColomboSantiagoMoscowTehranEgyptBrazilSwissLimaJSE
NUMBER OF LISTED COMPANIES (2015)
46
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 $)
Source: Borsa Istanbul 349
431 399 381
98
2012 2013 2014 2015 2016/03
32,984 20,502 19,991 18,878 14,217
351
0 2,000 4,000 6,000 8,000 10,000
Nasdaq OMXShenzhenShanghaiBATS USNYSE BATS Chi-x EuropeBorsa IstanbulLondon GroupSaudi ArabiaSouth KoreaOMX NordicHong KongSingaporeNSE IndiaBSE IndiaIndonesiaOslo BorsDeutscheEuronextAustraliaMalaysiaThailandTel AvivMoscowWarsawTaiwanMexicoTokyoTaipeiSwissSpainBrazilIrishTMXJSE
EQUITY TRADING VOLUME (2015, BILLION $)
48
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%
Shenzhen Nasdaq OMXShanghaiMexicoTaipei Borsa IstanbulLondon GroupNew ZealandSaudi ArabiaSouth KoreaOMX NordicHong KongHoChiMinhNSE IndiaOslo BorsDeutscheEuronextAustraliaThailandHungaryMoscowWarsawTaiwanAthensTokyoDubaiSpainSwissBrazilNYSEIrishTMXJSE
TURNOVER RATIO (EQUITY TRADING VOLUME/MARKET CAPITALIZATION - 2015)
Source: WFE
Rank: 6th
SECURITIES LENDING/BORROWING IN BORSA ISTANBUL (MILLION $)
50
Source: Borsa Istanbul 1,639
1,613
2,878
2,097
477
2012 2013 2014 2015 2016/03
SHORT SELLING IN BORSA ISTANBUL
Source: Borsa Istanbul
19 51 63 66 18
6%
12%
16%
17%
19%
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
2012 2013 2014 2015 2016/03
Short Selling Volume (Bn. $) Share in Total Volume
MARGIN TRADING
52
Source: TCMA
598 759 493 516 449
11,462
10,417
9,914 9,539 9,257
2012 2013 2014 2015 2016/03
Outstanding Loan Size (Mn. $) No. of Contracts
FUTURES TRADING VOLUME OF BORSA ISTANBUL (BILLION $)
Source: Borsa Istanbul, TurkDex Security expiry transactions are included.
226 220 199 209 52
62
53
59
88
25
2012 2013 2014 2015 2016/03
Trading Volume (Billion. $) No. of Contracts (Million)
879,624 85,353 64,382 47,327 209
0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000
CME Group ICE (Europe) CFFEX- China Deutsche BörseBM&FBOVESPA ASX SFE DerivativesDalian CE-ChinaBorsa IstanbulZhengzhou CEICE (Canada)Malasysia DEBudapest SELME-LondonShanghai FEOMX NordicMexican DEHong KongASX GroupNSE-IndiaColombiaBSE IndiaTokyo SEEuronextMontrealICE (US)MoscowWarsawNZX LtdTAIFEXAthensOsakaKoreaSpainOsloJSE
TRADING VOLUME IN FUTURES MARKETS (2015, BILLION $)
54
Source: WFE
Rank: 25th
NUMBER OF LISTED CORPORATE BONDS IN BORSA ISTANBUL
Source: WFE 192
299
436 464 487
2012 2013 2014 2015 2016/03
464
0 1,000 2,000 3,000 4,000 5,000 6,000
London GroupBuenos AiresSouth KoreaOMX NordicHong KongNSE IndiaBSE IndiaOslo BorsShanghaiColombiaEuronextTel AvivMoscowWienerTaipeiSpainSwissIrishJSE Borsa IstanbulNew ZealandCasablancaKazakhstanShenzhenColomboLjubljanaMauritiusHungaryMalaysiaThailandWarsawTokyoBrazilMaltaLima
7,021 9,905
NUMBER OF LISTED CORPORATE BONDS (2015)
56
Source: WFE
Rank: 20th
INVESTMENT INSTITUTIONS
FIXED INCOME TRADING VOLUME OF INTERMEDIARIES (BILLION $)
58
Source: Borsa Istanbul
932 888
521
346
143
54 75
53
43
2012 2013 2014 2015 2016/03
Brokerage Firms Banks 986
161 963
574
389
REPO-REVERSE REPO TRADING VOLUME OF INTERMEDIARIES (BILLION $)
Source: Borsa Istanbul 6,658
6,009 6,044
5,400
1,413 758
660 638
593
121
2012 2013 2014 2015 2016/03
Brokerage Firms Banks
7,416
6,669 6,682
1,535 1,635
5,933
EQUITY TRADING VOLUME OF INTERMEDIARIES (BN. $)
60
Source: Borsa Istanbul 697
863 798 761
196
2012 2013 2014 2015 2016/03
FUTURES TRADING VOLUME OF INVESTMENT INSTITUTIONS (BILLION $)
Source: Borsa Istanbul, TurkDex
399 395 395 416
304
53 45
2
2012 2013 2014 2015 2016/03
Banks Brokerage Firms 9
88 65 9 88
65 452
440
397 417
305
FOREX TRADING VOLUME (BILLION $)
62
Source: TCMA 795
1,546 1,991
3,492
846 524
1,027
1,526
2,732
670
2012 2013 2014 2015 2016/03
Liquidity Provider Client
1,320 1,515
2,753
3,516
6,224
CONCENTRATION IN TRADING VOLUMES (2015)
Source: Borsa Istanbul, TCMA 54%
75%
62% 69%
23%
19%
20%
23%
22%
7%
17%
7%
Equity Fixed Income Futures Forex
51+ 21-50 11-20 1-10
No. of Intermediaries No. of Intermediaries
TOP 10 MEMBERS IN THE MARKETS (2015)
64
Source: Borsa Istanbul, TCMA
Equity Market Futures Market
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)
Source: TCMA 175
284
465
608
20 114
34
83
88
61
47 43
63
34
65
16 21
14
11
2012 2013 2014 2015 2016/03
Privatization
IPO&SPO-Equities M&A
Other Consultancy Corporate Actions Bond Issuance
747
269
INITIAL PUBLIC OFFERINGS
66
Source: Borsa Istanbul
362 758 320 45
13 30
19
13
6
1
2012 2013 2014 2015 2016/03
IPO Volume (Mn. $) No. of IPOs
PRIVATE DEBT SECURITIES ISSUES
Source: Borsa Istanbul 23
29 30
29
7 235
330
508
621
172
2012 2013 2014 2015 2016/03
Size of Private Debt Securities Issued (bn. $) No. of Private Debt Securities Issued
INSTITUTIONAL INVESTMENTS (BILLION $)
68
Source: Borsa Istanbul, CMB
17 14 14 13 14
11
12 16 16
18 0.3
0.2
0.1 0.1
9 0.1
9
9
7 0.5 8
0.5
0.6
0.5
0.5
2012 2013 2014 2015 2016/03
Venture Capital Inv. Trusts REITs
Investment Trusts Pension Funds
Mutual Funds 41
38
41 36 37
ASSET MANAGEMENT BY BROKERAGE FIRMS
Source: TCMA
2,101 2,049 2,310 434 410
2,511
2,753
2,923
2,649
2,846
2012 2013 2014 2015 2016/03
Assets Under Management (Mn. $) No. of Investors
ASSET MANAGEMENT BY ASSET MANAGEMENT COMPANIES
70
Source: CMB, TCMA
31,710 30,330 35,153 34,604 35,874
2,118
2,283
2,422 2,861
2,681
0 500 1,000 1,500 2,000 2,500 3,000 3,500
2012 2013 2014 2015 2016/03
Assets Under Management (Mn. $) No. of Investors
BROKERAGE FIRMS’ BRANCH NETWORK
Source: TCMA
6,684 6,950 7,071
5,763
161 153 150
323 331
2012 2013 2014 2015 2016/03
Bank Branches Branches Rep. Offices
6,175 7,288
7,174 6,911
5,752 6,162
BROKERAGE FIRMS’ EMPLOYEES
72
Source: TCMA
5,258 5,480 5,657
6,639 6,697
2012 2013 2014 2015 2016/03
ASSET MANAGEMENT COMPANIES’ EMPLOYEES
Source: TCMA
583 615
698 721
2013 2014 2015 2016/03
BANKS’ EMPLOYEES
74
Source: BRSA
214,226 201,453 216,912 217,504 216,532
2012 2013 2014 2015 2016/03
BALANCE SHEET OF BROKERAGE FIRMS (MILLION $)
Source: TCMA
5,847 6,085 6,076
4,881
5,885
6,416 6,566 6,503
5,247
6,426
1,711 1,566 1,572
1,374 1,398
2012 2013 2014 2015 2016/03
Current Assets Total Assets Shareholders' Equity
INCOME STATEMENT OF BROKERAGE FIRMS (MILLION $)
76
Source: TCMA 626
733 725 736
149 70
119 128 111
43 162
278
170 159
56
2012 2013 2014 2015 2016/03
Total Revenues Operating Profit Net Profit
BREAKDOWN OF BROKERAGE FIRMS’ REVENUES
Source: TCMA
61% 64% 64% 66% 70%
12%8% 4% 5% 5% 3%
10% 9% 8% 7%
15% 18% 19% 18% 18%
15% 18% 19% 18% 18%
2012 2013 2014 2015 2016/03
Others Asset Management Corporate Finance Proprietary Trading Profits Brokerage Commissions
BALANCE SHEET OF ASSET MANAGEMENT COMPANIES (MILLION $)
78
Source: TCMA 150
160 162 158
162
176 174 171
145
156 156
148
2013 2014 2015 2016/03
Current Assets Total Assets Shareholders' Equity
INCOME STATEMENT OF ASSET MANAGEMENT COMPANIES (MILLION $)
Source: TCMA
108 105 109
27
34 32 32
5
31 32 33
7
2013 2014 2015 2016/03
Total Revenues Operating Profit Net Profit
BREAKDOWN OF ASSET MANAGEMENT COMPANIES’ REVENUES
80
Source: TCMA
59% 58% 60% 64%
25% 30% 31% 28%
14% 11% 8% 7%
2013 2014 2015 2016/03
Discretionary Asset Mgmt. Fund Sales Financial Advisory Investment Trust Mgmt. Pension Fund Mgmt. Mutual Fund Mgmt.
INVESTOR PROFILE
BREAKDOWN OF TOTAL SAVINGS (BILLION $)
82
Source: BRSA, CRA, TCMA estimates
368 434 444 452
427 205
267 220 222
179 74
120
92 107
78
2011 2012 2013 2014 2015
Equities
Fixed Income
Deposits
756 781
683 821
647
SAVINGS OF DOMESTIC INVESTORS
Source: BRSA, CRA, TCMA estimates Total Domestic Inv. Savings as of
December 2015: US$ 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
(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 $)
86
Source: CRA, Borsa Istanbul
28 41 34 39 29
46
79 57 68
48 128
191
145
163
113
2011 2012 2013 2014 2015
Privately Held Foreigners' Portfolio Domestics' Portfolio
202
237
270 311
190
SHARE OF FOREIGN INVESTORS
Source: CRA, Borsa Istanbul
0%
4%
8%
12%
16%
20%
24%
28%
32%
0%
10%
20%
30%
40%
50%
60%
70%
80%
2011 2012 2013 2014 2015
Share in Free Float Mcap Share in Trading Volume MCap Vol.
EQUITY OWNERSHIP ACCORDING TO INVESTOR CATEGORIES
88
Source: CRA
Total equity portfolio as of December 2015: US$ 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
Source: TCMA 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2012 2013 2014 2015 2016/03
For. Institutional
For. Corporation
For. Individual
Dom. Institutional
Dom. Corporation
Dom. Individual
CORPORATE BOND OWNERSHIP ACCORDING TO INVESTOR CATEGORIES
90
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
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.)
