Turkey Country Presentation

Transcription

1 12 th ASF Tokyo Roundtable Turkey Country Presentation November 2016 Mustafa Ozer

2 STRUCTURE OF THE TURKISH CAPITAL MARKETS

3 REGULATORY STRUCTURE OF TURKİSH 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 -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 3

4 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 4

5 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. 5

6 TURKISH CAPITAL MARKETS ASSOCIATION

7 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 231 members as of October 2016; 88 brokerage firms, 43 banks, 52 portfolio management companies, 9 securities investment trusts, 31 real estate investment trusts and 8 venture capital investment trusts. 7

8 MEMBERS Investment Trusts Asset Management Firms Banks Brokerage Firms /09 8

9 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) 9

10 TURKİSH CAPİTAL MARKETS

11 BORSA İSTANBUL ,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, , / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / /08 Trading Volume BIST-100 (TL) Point Mn. $

12 INITIAL PUBLIC OFFERINGS Source: Borsa Istanbul 12

13 MARKET CAPITALIZATION OF BORSA ISTANBUL (BILLION TL) Source: Borsa Istanbul 13

14 DOMESTIC MARKET CAPITALIZATION (2015, BILLION $) Rank: 32nd Source: WFE WFE definition excluding investment funds, ETFs, unit trusts, unlisted companies, holding companies with a mere business of holding shares on the exchange. 14

15 MARKET CAPITALIZATION/GDP (2015) Borsa Istanbul Wiener HoChiMinh Colombo Brazil Warsaw Colombia Lima Moscow Shenzhen Abu Dhabi Mexico Shanghai Indonesia Nasdaq OMX Amman New Zealand Casablanca Malta Oslo Bors Deutsche Irish Bahrain Mauritius Spain Saudi Arabia NSE India Muscat BSE India Qatar Santiago Philippines Luxembourg Tel Aviv London Group Euronext South Korea Thailand Australia NYSE TMX OMX Nordic Tokyo Malaysia Taiwan Singapore Swiss JSE Hong Kong 25% 0% 40% 80% 120% 160% 200% Source: WFE, IMF Rank: 49th 15

16 NUMBER OF LISTED COMPANIES (2015) Egypt Moscow Philippines Swiss Colombo HoChiMinh Lima Santiago Tehran Brazil JSE Borsa Istanbul Tel Aviv Indonesia Deutsche Thailand Taipei Singapore OMX Nordic Taiwan Malaysia Warsaw Euronext Shanghai Shenzhen Hong Kong South Korea Australia NYSE London Group Nasdaq OMX Tokyo TMX Spain BSE India 393 Rank: 25th ,000 1,500 2,000 2,500 3,000 3,513 3,559 3,651 5,836 Source: WFE WFE definition excludes investment funds, ETFs, unit trusts, unlisted companies, holding companies with a mere business of holding shares on the exchange. 16

17 EQUITY TRADING VOLUME (2015, BILLION $) Tel Aviv Warsaw Indonesia BSE India Mexico Malaysia Oslo Bors Taipei Singapore Thailand Moscow Borsa Istanbul JSE Saudi Arabia Brazil Taiwan NSE India OMX Nordic Australia Spain Swiss TMX Deutsche South Korea Hong Kong Euronext London Group Tokyo BATS Chi-x BATS US Shenzhen NYSE Shanghai Nasdaq OMX 375 Rank: 23rd 0 2,000 4,000 6,000 8,000 10,000 14,217 19,620 19,991 21,389 32,984 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. 17

18 TURNOVER RATIO (EQUITY TRADING VOLUME/MARKET CAPITALIZATION ) Malaysia Irish New Zealand Bangladesh HoChiMinh Warsaw NSE India Dubai Athens JSE OMX Nordic Hong Kong Swiss Oslo Bors TMX Australia Thailand Taiwan Moscow Deutsche Euronext Brazil Saudi Arabia London Group NYSE Tokyo Spain South Korea Borsa Istanbul Taipei Nasdaq OMX Shanghai Shenzhen Source: WFE Rank: 5th 0% 40% 80% 120% 160% 200% 199% 216% 453% 470% 539% 18

19 CORPORATE DEBT SECURITIES ISSUES Size of Private Debt Securities Issued (bn. TL) No. of Private Debt Securities Issued /09 Source: Borsa Istanbul 19

20 FUTURES MARKETS Futures Trading Volume (bn. TL) No. of Contracts (million) /09 20

21 FOREX TRADING VOLUME (BILLION TL) 17,005 Liquidity Provider Client 7,459 9,860 7,693 4,956 4,341 3,340 2,366 1,986 9, ,426 2,970 4,353 5, /06 Source: TCMA 21

22 ASSET MANAGEMENT BY ASSET MANAGEMENT COMPANIES Source: CMB, TCMA 22

23 INSTITUIONAL INVESTORS Venture Capital Inv. Trusts REITs Investment Trusts Pension Funds Mutual Funds /06 23

24 SAVINGS OF DOMESTIC INVESTORS 15% 12% 14% 11% 11% Equities 32% 29% 28% 26% 26% Fixed Income Deposits 53% 59% 58% 62% 62% /06 Source: BRSA, CRA, TCMA estimates Total Domestic Inv. Savings as of June 2016: TL 1.8 trillion 24

25 CHALLENGES

26 AUTO-ENROLMENT A new auto-enrolment system introduced, in addition to the existing voluntary private pension system Target is 15 mn. participants (Current: 6.5 mn) Passed law in August 2016, going live in January 2017 Applicable to all employees under the age of 45 26

27 SOVEREIGN WEALTH FUND Expected outcomes: promote financial markets limit market volatility and stabilize economy support infrastructure projects 27

28 CORPORATE BOND MARKET Corporate bonds picked up in 2011 with decreasing interest rates Recent defaults on corporate bonds Industry leaders convened under TCMA Increased supervision and regulation expected from the regulator 28

29 ISLAMİC FİNANCE Sharia Board at TCMA Interest-Free Finance Coordination founded Turkey to become key player in Islamic Finance 29

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