Turkish Capital Markets. May 2018

Transcription

1 Turkish Capital Markets May 2018

2 CONTENTS 3 Structure of the Turkish Financial Markets 16 Turkish Capital Markets Association 24 Turkish Capital Markets 43 Investment Institutions 67 Investor Profile 2

3 STRUCTURE OF THE TURKISH CAPITAL MARKETS

4 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). 2016: TCMA arbitration committees established. Türkiye Wealth Fund established 2017: Auto-enrollment in the private pension system introduced. 4

5 REGULATORY STRUCTURE OF THE FINANCIAL MARKETS 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 -Turkish Appraisers Association -Banks -Brokerage Firms -Asset Management Firms -Investment Trusts -Central Registry Agency -Settlement and Custody Bank -Capital Markets Licensing and Training Agency -Investor Compensation Center -Insurance Association of Turkey -Insurance Companies -Private Pension Companies -Private Pension Funds 5

6 CAPITAL MARKET INSTITUTIONS IN TURKEY Capital Markets Board TCMA (SRO) Borsa Istanbul Banks Brokerage Firms Inv. Trusts Asset Mgmt. Co. Public Co. Listed Co. Licensing and Training Agency Rating Co. Ind. Audit Co. Settlement & Custody Bank (Takasbank) Central Registry Agency 6

7 CAPITAL MARKETS BOARD 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 o o Primary markets, Secondary markets, Investment services. 7

8 BORSA ISTANBUL Borsa Istanbul, formerly named as Istanbul Stock Exchange, was established in The exchange was demutualised in 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 Technological infrastructure is provided by NASDAQ OMX. European Investment Bank acquired a 10% share in

9 BORSA ISTANBUL The main markets and the traded securities on Borsa Istanbul are: o o o o Equity Market: Shares, rights coupons, ETFs, warrants, certificates. Debt Securities Market: Government bonds, corporate bonds, asset backed securities, Islamic bonds, repo-reverse repo transactions, Turkish eurobonds, money market. 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. Precious Metals and Diamond Market: Gold, silver, platinum and palladium. 9

10 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 nondeposit taking bank in Takasbank is: 10 o o o The clearing and settlement centre for Borsa Istanbul, The central counterparty (CCP) for Borsa Istanbul Futures & Options Market, 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 as well as the Borsa Istanbul Money 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.

11 MERKEZI KAYIT ISTANBUL CSD OF TURKEY Merkezi Kayit Istanbul CSD of Turkey was established in 2001 as a private company. It 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. 11

12 INVESTOR COMPENSATION CENTRE Investors Protection Fund, which covered equity settlement obligations, was established in 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 143,604 (~$ 40,000) in 2018, in case of liquidation or bankruptcy of investment institutions. All investment institutions have to be a member of the Investor Compensation Centre. 12

13 ACTIVITIES OF INTERMEDIARIES Equity Trading* BROKERAGE FIRMS Leveraged FX trading Public Offering* Asset Management Investment Consultancy Fixed Income Trading BANKS Derivatives Trading (exc. equity-linked products for banks) *Authorized activities for Investment Banks 13

14 TYPES OF BROKERAGE FIRMS Market Makers Execution Brokers execution of orders from their own account by positioning their customers as counterparty minimum capital: TL 26 million. execution of orders of in the name of customers and/or their own account offering custody services minimum capital: TL 10 million. Introducing Brokers reception of orders and transfer them to other brokers minimum capital: TL 2 million. 14

15 ASSET MANAGEMENT COMPANIES Portfolio Management Companies Real Estate Portfolio Management Companies May establish stock, bond, balanced mutual funds Mn. capital required varies btw. TL 2 million and 10 million depending on AUM. May establish only real estate investment funds Mn. capital required varies btw. TL 1 million and TL 5 million depending on AUM. Venture Capital Portfolio Management Companies May establish only venture capital investment funds Mn. capital required varies btw. TL 1 million and TL 5 million depending on AUM. 15

16 TURKISH CAPITAL MARKETS ASSOCIATION

17 TCMA Founded in April 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 223 members as of April 2018; 80 brokerage firms, 44 banks, 50 portfolio management companies, 9 securities investment trusts, 33 real estate investment trusts, and 7 venture capital investment trusts. 17

18 MEMBERS Investment Trusts Asset Management Firms Banks Brokerage Firms /04 18

19 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. 19

20 FUNCTIONS 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. 20

21 ORGANISATION Discipline Committee Chairman (Board of Directors) Board of Auditors Secretary General Assistant Secretary General Assistant Secretary General Assistant Secretary General Research & Statistics Corporate Communications Training Legal Affairs Compliance & Surveillance Human Resources, Administrative & Financial Affairs Information Technologies Membership Affairs 21

22 INTERNATIONAL MEMBERSHIPS Asia Securities Forum (ASF) member since OECD International Network on Financial Education (INFE) affiliate member since International Council of Securities Associations (ICSA) member since International Forum for Investor Education (IFIE) member since International Forum for Investor Education/Asia Chapter founding member since International Organization of Securities Commissions (IOSCO) affiliate member since

23 PARTICIPATIONS 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 23

24 TURKISH CAPITAL MARKETS

25 BIST-100 INDEX & TRADING VOLUME Point 120,000 Mn. TL 12,000 Trading Volume BIST-100 (TL) 100,000 10,000 80,000 8,000 60,000 6,000 40,000 4,000 20,000 2, Source: Borsa Istanbul 25

26 MARKET CAPITALIZATION OF BORSA ISTANBUL (BILLION TL) /03 Source: Borsa Istanbul 26

27 BREAKDOWN OF BORSA ISTANBUL MARKET CAPITALIZATION 100% 90% 80% 70% 60% 50% Technology Financials Services Industrials 40% 30% 20% 10% 0% Source: Borsa Istanbul 27

28 CONCENTRATION IN THE EQUITY MARKET (MCAP) No. of Equities 100% % 80% 70% 60% 50% 40% 30% 20% 10% 0% Source: Borsa Istanbul 28

29 DOMESTIC MARKET CAPITALIZATION (2017, BILLION $) Irish Wiener Warsaw Borsa Istanbul Tel Aviv Oslo Bors Philippines Santiago Mexico Saudi Arabia Malaysia Indonesia Thailand Moscow Singapore Spain Brazil Taiwan JSE Australia OMX Nordic Swiss South Korea Deutsche BSE India NSE India TMX Shenzhen Hong Kong Euronext London Group Shanghai Tokyo Nasdaq OMX NYSE Source: WFE 228 Rank: ,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,090 6,223 10,039 22,081 WFE definition excludes investment funds, ETFs, unit trusts, unlisted companies, holding companies with a mere business of holding shares on the exchange. 29

30 MARKET CAPITALIZATION/GDP (2017) Borsa Istanbul Dubai Kazakhstan Muscat Shenzhen Abu Dhabi Amman Mexico Wiener Warsaw Colombia Moscow Shanghai Malta Irish Brazil New Zealand Lima Indonesia Nasdaq OMX HoChiMinh Casablanca Deutsche Bahrain Tel Aviv Saudi Arabia Spain Oslo Bors Qatar Mauritius Philippines BSE India NSE India London Group Euronext Luxembourg Australia Santiago NYSE South Korea OMX Nordic Thailand Tokyo TMX Malaysia Taiwan Swiss Singapore JSE Hong Kong 27% 0% 40% 80% 120% 160% 200% Source: WFE, IMF Rank: % 257% 358% 1,302% 30

31 NUMBER OF SECURITIES IN THE EQUITY MARKET Real Estate/Venture Capital Investment Trusts/Funds ETF+Inv. Trusts Other Equities Equities /03 Source: Borsa Istanbul Equities: BIST Main+BIST Star Other Equities: BIST Emerging Companies, Watchlist, Pre-market Trading Platform 31

32 NUMBER OF LISTED COMPANIES (2017) Colombo Tehran Brazil HoChiMinh JSE Borsa Istanbul Tel Aviv Deutsche Wiener Indonesia Thailand Taipei Singapore Malaysia Taiwan OMX Nordic Euronext Shanghai NSE India Shenzhen Hong Kong South Korea Australia NYSE London Group Nasdaq OMX Spain TMX Tokyo BSE India 375 Rank: ,000 1,500 2,000 2,500 3,000 3,136 3,328 3,604 3,878 Source: WFE Excluding ETFs and investment trusts 32

33 EQUITY TRADING VOLUME OF BORSA ISTANBUL (BILLION TL) 873 1,023 1,014 1, /03 Source: Borsa Istanbul 33

34 EQUITY TRADING VOLUME (2017, BILLION $) Taipei Moscow Thailand Borsa Istanbul JSE Brazil Spain Taiwan OMX Nordic Australia NSE India Swiss TMX Deutsche South Korea Hong Kong Euronext London Group Tokyo BATS Chi-x Shanghai Shenzhen BATS US NYSE Nasdaq OMX 395 Rank: 22 12,302 16,140 33, ,000 4,000 6,000 8,000 10, 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.

35 TURNOVER RATIO (EQUITY TRADING VOLUME/MARKET CAPITALIZATION ) New Zealand JSE Egypt Hungary Warsaw Irish HoChiMinh NSE India Oslo Bors Moscow Hong Kong Saudi Arabia TMX Thailand Swiss Australia Euronext Deutsche Brazil NYSE OMX Nordic Spain Tokyo London Group South Korea Shanghai Borsa Istanbul Taipei Shenzhen Nasdaq OMX 174% Rank: 4 227% 253% 333% Source: WFE 0% 40% 80% 120% 160% 200% 35

36 SECURITIES LENDING/BORROWING IN BORSA ISTANBUL (MILLION TL) 12,970 6,296 7,423 5,565 4, /03 Source: Takasbank 36

37 SHORT SELLING IN BORSA ISTANBUL % Short Selling Volume (bn. TL) Share in Total Volume % % 17% 17% 15% % % 10% % % /03 Source: Borsa Istanbul 37

38 MARGIN TRADING Outstanding Loan Size (mn. TL) No. of Contracts 10,670 10,417 9,914 9,585 9,390 1,160 1,148 1,507 1,465 2, Source: TCMA 38

39 FUTURES TRADING VOLUME OF BORSA ISTANBUL Futures Trading Volume (bn. TL) No. of Contracts (million) /03 Source: Borsa Istanbul, TurkDex 39

40 TRADING VOLUME IN FUTURES MARKETS (2017, BILLION $) Borsa Istanbul Malasysia DE BSE India JSE Spain MCX-India Moscow Nasdaq OMX Taiwan Futures Euronext Zhengzhou CE NSE-India CFFEX- China Hong Kong Dalian CE-China ICE (US) Korea Osaka LME-London Montreal ASX SFE Derivatives Deustche Boerse BM&FBOVESPA ICE (Europe) Chicago Mercantile 225 Rank: 25 64,120 74, ,143 1,103, ,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 Source: WFE 40

41 NUMBER OF LISTED CORPORATE BONDS IN BORSA ISTANBUL /03 Source: WFE 41

42 NUMBER OF LISTED CORPORATE BONDS (2017) Kazakhstan Brazil Lima Warsaw Shenzhen Colombia Borsa Istanbul Tel Aviv Swiss Hong Kong Taipei Moscow Buenos Aires JSE Oslo Bors Wiener Spain Shanghai NSE India Euronext OMX Nordic Irish London Group BSE India South Korea 662 Rank: 19 5,026 5,321 5,690 6,469 6,702 7,696 Source: WFE 0 1,000 2,000 3,000 4,000 5,000 42

43 INITIAL PUBLIC OFFERINGS 13 IPO Volume (mn. TL) No. of IPOs , , /03 Source: Borsa Istanbul 43

44 EQUITY FINANCING 6,000 Rights Issue SPO + Wholesale 5,000 IPO 5,063 4,000 3,000 3,556 3,331 3,809 3, ,000 2,660 1,966 2,148 1, ,040 1, ,245 1, /03 Source: Borsa Istanbul Only capital increases at the wholesale market are taken into account. 44

45 CORPORATE DEBT SECURITIES ISSUANCE Size of Corporate Bonds Issued (bn. TL) 1,217 No. of Corporate Bonds Issued /03 Source: Borsa Istanbul 45

46 INVESTMENT INSTITUTIONS

47 FIXED INCOME TRADING VOLUME OF INTERMEDIARIES (BILLION TL) 1, ,059 1, , Brokerage Firms Banks 117 1,635 1, ,125 1, /03 Source: Borsa Istanbul Excluding Central Bank and Takasbank. 47

48 REPO-REVERSE REPO TRADING VOLUME OF INTERMEDIARIES (BILLION TL) Brokerage Firms Banks 16,315 14,626 1,614 14,877 1,397 1,331 13,229 14,700 13,546 7,354 1,177 6, /03 Source: Borsa Istanbul Excluding Central Bank and Takasbank. 48

49 EQUITY TRADING VOLUME OF INTERMEDIARIES (BILLION TL) Banks Brokerage Firms 2, ,746 2,045 2,027 2,773 1, /03 Source: Borsa Istanbul 49

50 FUTURES TRADING VOLUME OF INTERMEDIARIES (BILLION TL) Banks Brokerage Firms 1, ,135 1, , ,131 1, /03 Source: Borsa Istanbul, TurkDex 50

51 FOREX TRADING VOLUME (BILLION TL) Liquidity Provider 21,850 Client 17,005 9,604 7,459 7,693 8,578 3,340 9,546 12,245 3,912 4,353 4,667 1, /03 Source: TCMA 51

52 CONCENTRATION IN TRADING VOLUMES (2018/03) No. of Intermediaries % 25% 7% 20% 12% 11% 21% 22% 61% 66% 70% 74% Equity Fixed Income Futures Forex Source: Borsa Istanbul, TCMA 52

53 TOP 10 MEMBERS IN THE MARKETS (2018/03) Equity Market Futures Market 1 MERRILL LYNCH YATIRIM BANK A.Ş. 9% 1 IS YATIRIM MENKUL DEGERLER A.S. 13% 2 GARANTİ YATIRIM MENKUL KIYMETLER A.Ş. 8% 2 GARANTI YATIRIM MENKUL DEGERLER A.S. 12% 3 İŞ YATIRIM MENKUL DEĞERLER A.Ş. 8% 3 TEB YATIRIM MENKUL DEGERLER A.S. 11% 4 YAPI KREDİ YATIRIM MENKUL DEĞERLER A.Ş. 7% 4 YAPI KREDI YATIRIM MENKUL DEGERLER A.S. 8% 5 AK YATIRIM MENKUL DEĞERLER A.Ş. 6% 5 AK YATIRIM MENKUL DEGERLER A.S. 7% 6 GEDİK YATIRIM MENKUL DEĞERLER A.Ş. 6% 6 DENIZ YATIRIM MENKUL KIYMETLER A.S. 5% 7 A1 CAPITAL YATIRIM MENKUL DEĞERLER A.Ş. 5% 7 FINANS YATIRIM MENKUL DEGERLER A.S. 5% 8 YATIRIM FİNANSMAN MENKUL DEĞERLER A.Ş. 4% 8 A1 CAPITAL MENKUL DEGERLER A.S. 4% 9 FİNANS YATIRIM MENKUL DEĞERLER A.Ş. 4% 9 GEDIK YATIRIM MENKUL DEGERLER A.S. 4% 10 MARBAŞ MENKUL DEĞERLER A.Ş. 4% 10 TACIRLER YATIRIM MENKUL DEGERLER A.S. 3% Total (bn. TL) 1,011 Total (bn. TL) 560 Fixed Income Market Forex Market 1 AKBANK T.A.Ş. 14% 1 AK YATIRIM MENKUL DEĞERLER A.Ş. 15% 2 TÜRKİYE GARANTİ BANKASI A.Ş. 10% 2 İŞ YATIRIM MENKUL DEĞERLER A.Ş. 11% 3 HSBC BANK A.Ş. 7% 3 GEDİK YATIRIM MENKUL DEĞERLER A.Ş. 10% 4 YAPI VE KREDİ BANKASI A.Ş. 6% 4 GCM MENKUL KIYMETLER A.Ş. 9% 5 TÜRKİYE İŞ BANKASI A.Ş. 6% 5 ŞEKER YATIRIM MENKUL DEĞERLER A.Ş. 7% 6 TÜRK EKONOMİ BANKASI A.Ş. 5% 6 IŞIK MENKUL DEĞERLER A.Ş. 6% 7 AK YATIRIM MENKUL DEĞERLER A.Ş. 5% 7 İNTEGRAL YATIRIM MENKUL DEĞERLER A.Ş. 6% 8 DEUTSCHE BANK A.Ş. 5% 8 DENİZ YATIRIM MENKUL KIYMETLER A.Ş. 5% 9 JPMORGAN CHASE BANK NATIONAL ASSOCIATION M 4% 9 MEKSA YATIRIM MENKUL DEĞERLER A.Ş. 5% 10 FİNANSBANK A.Ş. 4% 10 İNFO YATIRIM MENKUL DEĞERLER A.Ş. 2% Total (bn. TL) 345 Total (bn. TL) 1,650 Source: Borsa Istanbul, TCMA 53

54 NUMBER OF FINALIZED CORPORATE FINANCE DEALS (BROKERAGE FIRMS ONLY) Other Financing Privatization M&A IPO&SPO-Equities Corporate Actions 883 1, Other Consultancy Bond Issuance , Source: TCMA 54

55 INSTITUTIONAL INVESTMENTS (BILLION TL) Venture Capital Inv. Trusts Investment Trusts Mutual Funds REITs Pension Funds /03 Source: Borsa Istanbul, TCMA 55

56 ASSET MANAGEMENT BY BROKERAGE FIRMS Assets Under Management (mn. TL) No. of Investors 4,102 3,696 2,753 2,923 2,649 4,366 5,375 1,267 1,341 1, Source: TCMA 56

57 ASSET MANAGEMENT BY ASSET MANAGEMENT COMPANIES 4,000 Assets Under Management (mn. TL) No. of Investors 3,500 3,000 2,688 3,082 3,344 2,500 2,000 2,168 2,277 1,500 1, ,828 81, , , , Source: CMB, TCMA 57

58 BROKERAGE FIRMS BRANCH NETWORK Bank Branches Branches Rep. Offices 7,174 7, , ,666 8, ,950 7,071 5,763 8,297 8, Source: TCMA 58

59 BROKERAGE FIRMS EMPLOYEES 5,480 5,657 6,632 6,478 4, Source: TCMA 59

60 ASSET MANAGEMENT COMPANIES EMPLOYEES Source: TCMA 60

61 BANKS EMPLOYEES 214, , , , , Source: BRSA 61

62 BALANCE SHEET OF BROKERAGE FIRMS (BILLION TL) Current Assets Total Assets Shareholders' Equity Source: TCMA 62

63 INCOME STATEMENT OF BROKERAGE FIRMS (MILLION TL) Total Revenues Operating Profit Net Profit 2,510 2,001 2,175 1,394 1, Source: TCMA 63

64 BREAKDOWN OF BROKERAGE FIRMS REVENUES (MILLION TL) Brokerage Commissions Proprietary Trading Profits Corporate Finance Asset Management Others 2,510 1, , ,017 2, ,332 2, ,511 1, Source: TCMA 64

65 BALANCE SHEET OF ASSET MANAGEMENT COMPANIES (MILLION TL) Current Assets Total Assets Shareholders' Equity Source: TCMA 65

66 INCOME STATEMENT OF ASSET MANAGEMENT COMPANIES (MILLION TL) Total Revenues Operating Profit Net Profit Source: TCMA 66

67 BREAKDOWN OF ASSET MANAGEMENT COMPANIES REVENUES (MILLION TL) Discretionary Asset Mgmt. Financial Advisory Pension Fund Mgmt Fund Sales Investment Trust Mgmt. Mutual Fund Mgmt Source: TCMA Eksen Başlığı 67

68 INVESTOR PROFILE

69 BREAKDOWN OF TOTAL SAVINGS (BILLION TL) 2,800 2, Equities 2, Fixed Income 1, , Deposits 500 1,053 1,245 1,453 1,711 1, /03 Source: BRSA, CRA, TCMA estimates 69

70 SAVINGS OF DOMESTIC INVESTORS 6% 5% 5% 5% 6% Equities 28% 28% 27% 26% 26% Fixed Income Deposits 66% 67% 69% 68% 68% /03 Source: BRSA, CRA, TCMA estimates Total Domestic Inv. Savings as of 2018/03: TL 2.4 trillion 70

71 SAVINGS OF FOREIGN INVESTORS Equities 46% 44% 45% 48% 47% Fixed Income Deposits 36% 30% 28% 25% 24% 18% 26% 27% 27% 29% /03 Source: BRSA, CRA, TCMA estimates Total Foreign Investors Savings as of 2018/03: TL 503 bn 71

72 NUMBER OF EQUITY INVESTORS Number of Equity Investors (thou.) /03 Domestic Investors 1, , , , ,103.7 Dom. Individuals 1, , , , ,098.3 Dom. Corporations Dom. Institutionals Foreign Investors For. Individuals For. Corporations For. Institutionals Total 1, , , , ,113.3 Source: CRA 72

73 BREAKDOWN OF MARKET CAPITALIZATION (BILLION TL) Privately Held Foreigners' Portfolio Domestics' Portfolio /03 Source: CRA, Borsa Istanbul 73

74 SHARE OF FOREIGN INVESTORS MCap Vol. 80% Share in Free Float Mcap (left) Share in Trading Volume (right) 32% 70% 28% 60% 24% 50% 20% 40% 16% 30% 12% 20% 8% 10% 4% 0% /03 0% Source: CRA, Borsa Istanbul 74

75 EQUITY OWNERSHIP ACCORDING TO INVESTOR CATEGORIES 100% 90% 80% 70% 60% 50% 40% For. Other For. Corporation For. Individual Dom. Other Dom. Corporation Dom. Individual 30% 20% 10% 0% /03 Source: CRA Total equity portfolio as of 2018/03: TL 368 bn 75

76 BREAKDOWN OF EQUITY TRADING VOLUME BY INVESTOR CATEGORIES * 100% 90% 80% 70% 60% For. Institutional For. Corporation For. Individual 50% 40% 30% 20% 10% Dom. Institutional Dom. Corporation Dom. Individual 0% Source: TCMA *Brokerage firms only 76

77 NUMBER OF CORPORATE BOND INVESTORS Number of Corporate Bond Investors /03 Domestic Investors 136, ,690 96,771 81,865 75,233 Dom. Individuals Dom. Corporations 132, ,798 93,217 78,954 73,107 3,601 3,197 2,886 2,292 1, Dom. Institutionals Foreign Investors 1,384 1, For. Individuals For. Corporations For. Institutionals 1,330 1, Total 137, ,756 97,476 82,487 75,867 Source: CRA 77

78 CORPORATE BOND OWNERSHIP ACCORDING TO INVESTOR CATEGORIES 100% 90% 80% 70% 60% For. Other For. Corporation For. Individual 50% 40% 30% 20% 10% Dom. Other Dom. Corporation Dom. Individual 0% /03 Source: CRA Total corporate bond portfolio as of 2018/03: TL 74.9 bn. 78

79 MUTUAL FUND INVESTORS Portfolio Size (bn. TL) Number of Investors (mn.) / Source: CRA 79

80 PENSION FUND INVESTORS Total Portfolio Size (bn. TL) Portfolio Size (bn. TL) Number of Investors (mn.) PP 7.0 AE /03 - Source: PMC PP: Private pension schemes AE: Auto-enrolment Portfolio size includes government contributions. 80

81 BREAKDOWN OF FUTURES TRADING VOLUME BY INVESTOR CATEGORIES* 100% 90% 80% 70% 60% 50% 40% 30% For. Institutional For. Corporation For. Individual Dom. Institutional Dom. Corporation 20% 10% Dom. Individual 0% Source: TCMA *Brokerage firms only 81

82 FOREX TRADING VOLUME OF BROKERAGE FIRMS 100% For. Institutional 80% For. Corporation 60% For. Individual 40% Dom. Institutional Dom. Corporation 20% Dom. Individual 0% Source: TCMA

83