TCMA ANNUAL REPORT 2018

on basic capital market products such as mutual funds and borrowing instruments (T-bills, government bonds, corporate bonds, lease certificates) should also be reduced at similar ratios applied to deposit and participation accounts. Tax Council’s Activities Taking active part in the Income Tax and Corporate Tax- related activities of the Tax Council, the Association contributed to the production of the Sub-Working Group report on “Income on Securities and Gains on Appreciation” and presented the said report in the Tax Council General Meeting. T.R. Ministry of Treasury and Finance Tax Expenditures Report Data about revenues derived in 2017 on equity and securities investment trust equity trading on the basis of investor groups were gathered from our members for use as input in the Tax Expenditures report of the T.R. Ministry of Treasury and Finance, and were submitted to the Ministry. Notification Obligation for Asset Management Companies A request was filed for asset management companies’ not to be obliged to make a notification within the scope of the Guidelines for Determining Residency Status of asset management companies. As a result of this application, the need for obtaining a password for mutual funds became no longer necessary with the response of the T.R. Ministry of Treasury and Finance dated 26 June 2018. Promotion Campaigns Pursuant to the Capital Markets Board of Turkey requirements, promotion campaigns in relation to capital market activities by intermediary institutions and banks are notified to the Association prior to implementation, and planned campaigns can be held only after applications are reviewed and approved. During 2018, the Association reviewed 37 applications by members and informed the related parties on its conclusions. Questionnaire on Equity Market Transactions A questionnaire was administered seeking the opinions regarding the trial period for displaying member codes in transaction terminal queries throughout the session in Equity Market transactions by Borsa Istanbul, and their simultaneous delivery to data distribution companies, and to determine the sector’s opinions and suggestions regarding the final decision to be made by Borsa Istanbul regarding displaying the party data in transactions. Turkish Capital Markets Association’s 57 members, who were accountable for 91.4% of the total trading volume on the equity market in 2017, participated in the questionnaire conducted by the Association. A great majority of the respondents’ opinions outweighed toward displaying the party information for the orders realized on all equity market instruments including BIST30 in transaction terminal queries throughout the session and toward their simultaneous delivery to data distribution companies. Outcomes of the questionnaire covering our members’ opinions and suggestions about the practice were submitted to Borsa Istanbul. Since the two test runs in relation to the practice described above gave rise to no adverse effects on the market so far, Borsa Istanbul decided to introduce the practice on all equity market instruments as of 2 May 2018. Derivatives Market (VIOP) Trading Hours Morning Session Hours: The Association administered a questionnaire regarding the members’ opinions and suggestions in relation to moving the commencement time of continuous trading session limited to the FC Derivatives Market ahead from 9:30 to 8:00. The respondents to the questionnaire carried out in September consisted of 51 intermediary institutions responsible for 81.6% of the total trading volume between January-August 2018, and 19 banks and 3 asset management companies responsible for 0.6% of the trading volume. Questionnaire results covering the members’ opinions and suggestions were shared with Borsa Istanbul and opinions regarding the implementation were exchanged. Evening Session Hours: The Association administered a questionnaire to form the sector’s opinions and suggestions regarding increasing the trading hours of Borsa Istanbul and Istanbul Clearing, Settlement and Custody Bank Inc. (Takasbank) and the technical work for evening session practice that will last until 11:00 p.m. after the normal session hours. The respondents of the questionnaire aimed at identifying the members pursuing evening session practice and at the implementation of the evening session consisted of 48 intermediary institutions realizing 94% of the total trading volume in the January-August 2018 period. The questionnaire results covering members’ opinions and suggestions were shared with Borsa Istanbul. FinTech Search Conference “FinTech Permanent Sub-working Group” was set up to support the activities of the Systemic Risk Assessment Group in exploring the risks, as well as the benefits of 27 TCMA 2018 ANNUAL REPORT