BIST Volatility Alert: 'Up-Tick' Rule Activated to Curb Short Selling

Borsa Istanbul has activated a critical defense mechanism to maintain market stability following a sharp decline in the index. As the BIST100 index surpassed the threshold of -2%, the "up-tick" rule for short selling operations was officially implemented.

Breaking Speculative Downward Pressure

Effective as of 16:44:57, this regulation aims to tame excessive market volatility and prevent panic-driven sell-offs. The operational framework of the rule is as follows:

■Short selling transactions can only be executed at a price that is not lower than the last traded price.

■The capacity of sellers to aggressively push prices downward is restricted, aiming to return the market to its natural equilibrium.

■The measure will remain in effect until the end of the session for all shares eligible for short selling in the equity market.

Liquidity Management and Price Stability

This move by Borsa Istanbul serves as a safety valve designed to prevent the "waterfall effect"—the rapid downward spirals often encountered during periods of high volatility. While this rule is active, it becomes technically impossible for short-sellers to force the price lower, thereby creating a more stable environment for buyers to enter the market.

From a corporate portfolio management perspective, such technical interventions are effective tools for managing short-term volatility. However, I must emphasize that our primary focus should remain on the fundamental values and dividend capacities of companies rather than momentary fluctuations. Short-term pressures often provide long-term value investors with opportunities to optimize entry costs, as the market mechanism invariably reverts to rational pricing.