Precious Metals Market under Borsa Istanbul

There are four markets under Borsa Istanbul: Equity Market, Debt Securities Market, Derivatives Market, and Precious Metals And Diamond Markets. The Precious Metals And Diamond Markets composes of three different markets:

1. Precious Metals Market,
2. Precious Metals Lending Market,
3. Diamond and Precious Stones Market.

Precious Metals Market has remarkable volume among world exchanges. The daily average volume was 730 million USD in 2021.

Gold Markets/Exchanges in the World Trading Volumes

*Dubai Gold & Commodities Exchange, ICE Futures, US Metals, Bursa Malaysia, Moscow Exchange – RTSX, Tokyo Commodity Exchange.

• Sources: GOLDHUB TRADING VOLUME (https://www.gold.org/goldhub/data/trading-volumes

Trading on the Precious Metals Market

Domestic or foreign banks, currency offices, precious metals brokerage houses, precious metals producing and marketing companies, and international companies with its fully-authorized branch in Türkiye that obtained the membership certificate from the Republic of Turkey Ministry of Treasury and Finance and complied with the requirements set forth by the Borsa İstanbul A.Ş. The Board of Directors, are authorized for trading on the exchange.

Precious Metals Brokerage Companies are the companies which are admitted to operate on the Exchange and who trade for the account of and on behalf of themselves, for the account of and on behalf of third parties or on behalf of themselves but for account of third parties and whose operational principles shall be governed by regulation published by Ministry of Treasury and Finance.

Activities of Precious Metals Brokerage Companies

• Buying and selling precious metals
• Lending and borrowing precious metals
• Temporary import of processed and unprocessed precious metals and stones to use them for the purpose of manufacturing finished products and export the same as finished or semifinished goods and stones
• Buying and selling of processed or unprocessed precious stones at the Exchange
• Buying and selling of precious metals and stones domestically.
• Buying and selling precious metals and capital markets instruments based on precious metals for the account of and /or on behalf of themselves and/or third parties
• Export and import of processed and unprocessed precious metals and/or precious stones and precious goods made of these in compliance with the export and imports regulations
• Buying and selling of cash foreign currency being limited to their activities at the Exchange

Conduct of Trading

Members who want to buy or sell precious metal, submit their order to the system via the internet based platform named as Genium Inet Workstation (GIW) or FIX-API, especially for algotrade and high frequency trade.

Spot market (until 120 value date), Trade at Fixing market (delta trade based on LBMA A.M. price) and Single (Equilibrium) Price session types are open to trade.

• Trading Metals: AU/AG/PT/PD
• Trading units (price units) in the market are: TRY/KG, USD/OZ, EUR/OZ, and TRY/GR for mini bars.
• Monetary liabilities are paid based on currency of price unit. But fees are paid in TRY.
• Settlement: Clearing transactions are executed by the Precious Metals Market of the Exchange and Istanbul Settlement and Custody Bank (TakasBank).

Members of the Market: Banks (24), Authorized Institutions (22), Precious Metals Brokerage Houses (15), Precious Metals Producing and Marketing Companies (14)

Membership

Below Resident Firms that can be a member of the Precious Metals Market under Borsa Istanbul:

1. Banks

2. Authorized Institutions (A group Currency Offices)

3. Precious Metals Brokerage Houses

• must be a joint-stock company
• must have at least 8.000.000 TL paid-in capital
• all shares must be registered to name and fully paid in cash
• at least 1 of the founders, who totally have more than %50 of the company’s shares, must have 5 or more years of experience in trade and production of Precious Metals,
• special conditions for founders, managers and compliance/internal control managers

4. Precious Metals Producing and Marketing Companies

• must be a joint-stock company
• must have at least 8.000.000 TL paid-in capital
• all shares must be registered to name and fully paid in cash
• must have 5 or more years of experience in the production and marketing of Precious Metals
• special conditions for founders, managers, and compliance/internal control managers

In order to become a member, a resident firm must obtain a license to operate in Borsa İstanbul Precious Metals Market from Republic of Turkey Ministry of Treasury and Finance Financial Sector Relations and Exchanges Directorate. After getting the license from the Ministry of Treasury and Finance, a non-resident firm must apply to Borsa Istanbul, within 60 days from the license date, with a petition, to become a market member.

Fees

• Membership entrance fee: 125.000 TL
• Precious Metals Market operation fee: 500.000 TL
• Annual fee: 17.000 TL (2022)