The Chairman of the Capital Markets Board, Ömer Gönül, announced that they are working on a new investment instrument.

Capital Markets Board Chairman Ömer Gönül stated that the restrictions imposed in 2020 against price fluctuations continue to be very important for protecting retail investors from excessive risks. The maximum limit that a stock can rise or fall in a single trading session is currently set at 10% compared to the previous day's closing.

These restrictions, along with the short-selling ban introduced during the same period, reshaped Turkey's stock market and left it in the hands of domestic investors rather than foreign funds. With the short-selling ban set to be lifted for the 50 largest stocks in 2025, market participants are speculating whether other easing measures will follow.

THE 10% CONDITION WILL CONTINUE

SPK Chairman Gönül defended the role of algorithmic trading, which has been criticized for creating an uneven playing field, especially during periods of low trading volume.

In an interview with Bloomberg, Gönül said, "If you are investing for the medium or long term, algorithms do not concern you. For those who trade daily, these are part of the market dynamics. These practices are legal and regulated by the exchange."

Gönül stated that the primary responsibility of the board is not to dictate which companies investors should support, but to ensure accurate disclosures in prospectuses.

In November, the Capital Markets Board mandated that money market funds allocate 10% of their portfolios to government bonds. Gönül said that the rule was not aimed at directly supporting government bonds and framed the measure as a way to direct investors towards safer assets.

A NEW INVESTMENT INSTRUMENT IS COMING

Gönül also mentioned that authorities are working on a bond instrument that features both property bond and convertible bond characteristics to diversify financing options for real estate developers.

The planned instrument envisions developers issuing bonds to finance their real estate projects, allowing investors to convert the bond into a property or, if they are not satisfied with the property's price, to receive the cash amount along with interest.