Borsa İstanbul (BİST) banned short selling and margin trading for three stocks on June 19 to curb extreme volatility, according to reports from Sözcü and CNBC-e. These measures target securities with abnormal price movements, including one stock that surged 64% in a single week.
- Restrictions: Short selling and credit-based (margin) transactions are prohibited for three stocks.
- Trigger: One affected security saw a 64% price increase within one week.
- Company Status: One of the targeted companies is currently managed by a government-appointed trustee.
- Timeline: The measures were finalized as part of a volatility review between June 15 and June 19.
Why Borsa İstanbul restricted these specific stocks
BİST implemented these precautionary measures to prevent speculative bubbles and sudden price crashes. According to CNBC-e, the exchange acted after one stock experienced a 64% increase in value over a week. These restrictions are designed to cool down “overheated” stocks where price movements no longer reflect fundamental company value but are instead driven by aggressive speculation.
Which companies are affected by the ban?
Reports from Sözcü and Borsa Gündem confirm that three stocks are now subject to these trading bans. While the exchange targets volatility generally, local media highlighted that one of the affected firms is currently under the management of a trustee (kayyum), adding a layer of corporate instability to the price volatility.
How short selling and margin bans stabilize the market
The ban targets two specific trading mechanisms that increase market risk. Short selling occurs when a trader sells borrowed shares, betting that the price will drop so they can buy them back cheaper. Margin trading allows investors to buy more shares than they can afford by borrowing funds from a broker.
By removing these tools, BİST limits the leverage traders can use to inflate prices or accelerate a crash. According to Paratic Haber, these decisions were part of a weekly balance assessment conducted from June 15 to June 19 to maintain overall market integrity.
