Turkey’s capital markets regulator on Monday temporarily banned short selling in the equity markets of Borsa Istanbul, the country’s main stock exchange, to mitigate market volatility amid escalating regional conflict.
The Capital Markets Board of Turkey said in a statement that the measure, effective through the close of trading on March 6, was introduced to safeguard market stability and protect investors.
Short selling, a practice that allows investors to profit from falling share prices and similar intraday positions, is covered by the ban.
The regulator also announced temporary flexibility in margin trading rules, lowering the minimum equity maintenance ratio from 35 per cent to 20 per cent, effective until March 6, to ease pressure on investors.
The move comes as Turkish financial markets react cautiously to coordinated U.S. and Israeli strikes on Iran and Iran’s retaliatory attacks across the Middle East.
(Xinhua/NAN)