BIST Imposes Trading Restrictions on Two Stocks Under VBTS: How Markets Will React?

Borsa İstanbul has imposed trading restrictions on ISVEA.E and KGYO.E stocks under the Volatility-Based Trading Restrictions System (VBTS). ISVEA.E will be subject to gross settlement restrictions from August 19, 2026, to September 18, 2026, while KGYO.E will be barred from short selling and margin trading during the same period. These measures aim to control anomalies in the market.

Gross Settlement and Trading Bans: Different Approaches for Two Stocks The restrictions indicate two distinct market mechanisms: gross settlement for ISVEA.E and trading bans for KGYO.E. Gross settlement ensures that the stock is traded only by a specific market maker for a set period, while short selling and margin trading bans prevent investors from taking partial positions in the stock.

VBTS's Role in BIST These measures represent the latest phase of Borsa İstanbul's Volatility-Based Trading Restrictions System (VBTS), designed to detect and quickly implement measures for abnormal market volatility.

These restrictions mark a critical step in bringing market anomalies under control. The different treatments for ISVEA.E and KGYO.E highlight targeted risk factors in the market. Gross settlement may enhance market liquidity by ensuring the stock is traded by a specific market maker, while short selling and margin trading bans could help stabilize the market by preventing risky positions.