TCMA 2020 ANNUAL REPORT

Actions and Suggestions Related to Market Security First emerged in December 2019 in China and having penetrated worldwide due to its rapid transmission, the Coronavirus was declared a pandemic by the World Health Organization (WHO) on 11 March 2020 because of its severe pandemic impact. Various efficient studies were conducted and numerous rules and arrangements were introduced by related institutions and organizations on a global and national scale in an effort to take the outbreak under control and minimize its effects. In our country, proactive decisions and action plans deemed necessary in response to the pandemic threat were enforced by related ministries, institutions and organizations, all coordinated by the T.R. Presidency and the T.R. Ministry of Health. Due to the illness’s negative effects on human health that complicate physical working conditions, our Members submitted their opinions and recommendations to our Association in relation to aligning the markets and operational processes of our Members with the current circumstances, for the purpose of restraining the negative implications on the markets. In this framework, opinions and suggestions seeking to mitigate the negative impacts of the ongoing process upon our capital markets and national economy were considered by the Association’s Board of Directors and submitted to the Capital Markets Board of Turkey (CMB). In the meeting of the CMB Executive Board, e.g. the decision making body, held on 19 March 2020, measures that can be adopted with respect to the capital markets against the Covid-19 outbreak were tackled comprehensively and the decisions made were published in the CMB Weekly Bulletin no. 2020/19 dated 23 March 2020. CMB Decision for Facilitation of Operational Processes Announcement was made to the Association Members regarding the decisions made by the CMB Executive Board upon consideration of the opinions and suggestions conveyed to the CMB by the Association for the facilitation of certain operational processes stipulated in the legislation during the period teleworking/shifting work schemes were implemented in order to prevent the spreading of the Coronavirus pandemic. Questionnaire on the Impact of the Covid-19 Process upon Capital Markets The Association developed the “Covid-19 Process Evaluation Questionnaire” to follow up the changes in the sector induced by the Covid-19 pandemic and to identify necessary actions. Sent to our Members, the questionnaire covered various questions about the changes in transaction volumes and budget targets during the pandemic, number of daily account openings in March and April, investor actions, remote access and teleworking. The New Market Segmentation in the Equity Market Within the framework of the announcement no. 2020/58 by Borsa İstanbul on “Market Segmentation in Equity Market”, some changes were made to the Equity Market structure, trading principles, market segment change-over criteria and listing requirements for the purpose of increasing depth in equity trading, under the Borsa İstanbul Board of Directors’ decision dated 10 September 2020 and the Capital Markets Board of Turkey (CMB) decision dated 14 September 2020. The said changes took effect on 01 November 2020. Decisions passed in the CMB Executive Board meeting no. 62 held on 30 September 2020 for elimination of uncertainties arising in the application of the “Open Clearing Position/ Margin” ratio were announced to our Members by the Association’s General Letter no. 834. Within the framework of the decisions made as announced by the CMB announcement dated 30 September 2020, which has been notified with the Borsa İstanbul Announcement no. 2020/58 dated 17 September 2020 and the Association’s General Letter dated 834; the problems arising in practice and ambiguities were discussed in the meetings held by and between our Association and representatives from İstanbul Settlement and Custody Bank (Takasbank) regarding the market segmentation in Borsa İstanbul equity market that was launched on 01 October 2020. Our members’ opinions and suggestions regarding open clearing position/margin ratio and gross settlement were presented. Cyber Security Initiatives Activity reports concerning “Cyber Security Activities” compiled and submitted to our Association by intermediary institutions and asset management companies that have TCMA 2020 ANNUAL REPORT 25