m
  

V Motto: ˜
  

  
 



V ñ them :  
 


Mustafa Kemal Atatürk, founder and first President of the
Republic of Turkey
V Council of
europe
V NATO
V OECD
V OSCE
V G-20
V Turkey began full membership
negotiations with the European Union in
2005
V having been an associate member of
the EEC since 1963
V and having reached a customs union
agreement in 1995. Meanwhile, as a
Muslim-majority country
V The name of Turkey, 

 in the Turkish language, can be
divided into two words: 
, which means "Strong" in Old Turkic
and usually signifying the inhabitants of Turkey or a member of
the Turkish or Turkic peoples,
V a later form of Ñ 
Ñ, a name given by the Chinese to the
people living south of the Altay Mountains of Central Asia as
early as 177 BCE;
V and the abstract suffix
 [derived from the Arabic suffix
,

V but also associated with the Medieval Latin suffix

 in 

,
and the Medieval Greek suffix !" in #$%&'!"),

V which means "owner" or "related to". The first recorded use of the
term "Türk" or "Türük" as an autonym is contained in the Orkhon
inscriptions of the Göktürks [
 ) of Central Asia [c. 8th
century CE). The English word "Turkey" is derived from the
Medieval Latin Ñ

Ñ [c. 1369).
V The Grand Chamber of
the Grand National
Assembly of Turkey in
Ankara
V Turkey is a parliamentary
representative
democracy. Since its
foundation as a republic in
1923,
V Turkey has developed a
strong tradition of
secularism.Turkey's
constitutiongoverns the
legal framework of the
country.
V It sets out the main
principles of government
and establishes Turkey as a
unitary centralized state.
V The head of state is the President of the
Republic and has a largely ceremonial role.

V The judiciary is independent of the executive

and the legislature, and the Constitutional
Court is charged with ruling on the conformity
of laws and decrees with the constitution.

V The Council of State is the tribunal of last resort

for administrative cases, and the High Court of
Appeals for all others
V Independence: 29
October 1923
[successor state to the
Ottoman Empire)

National holiday:
Republic Day, 29
October [1923)

Constitution: 7
November 1982
Turkey is a founding member of the United
Nations(1945),
the OECD(1961),
the OIC(1969),
the OSCE(1973),
the ECO(1985),
the BSEC (1992) a
nd the G-20 major economies(1999).
On October 17, 2008,
Turkey received the votes of 151 countries
and was elected as a non-permanent member
of the United Nations Security Council, on
behalf of the Western European and Others
Group, together with Austria which received
132 votes.Turkey's membership of the council
effectively began on January 1, 2009.
Turkey had previously been a member of the
U.N. Security Council in 1951-1952, 1954-
1955 and 1961.
The Turkish Armed Forcesconsists of the Army, the Navyand the Air Force.
The Gendarmerie and the Coast Guardoperate as parts of the Ministry of Internal
Affairs in peacetime, although they are subordinated to the Army and Navy
Commands respectively in wartime, during which they have both internal law
enforcement and military functions.

The Turkish Armed Forces is the second largest standing armed forcein NATO after
the U.S. Armed Forces with a combined strength of 1,043,550 uniformed personnel
serving in its five branches.Every fit male Turkish citizen otherwise not barred is
required to serve in the military for a time period ranging from three weeks to
fifteen months, dependent on education and job location.
Turkey does not recognise conscientious objection and does not offer a civilian
alternative to military service.
V Bosphorus Bridge in
Istanbul, connecting
Europe [left) and Asia
[right)
V Turkey is a transcontinental
Eurasian country.
V Asian Turkey [made up
largely of Anatolia, which
includes 97% of the country,
is separated from European
Turkey by the Bosporus, the
Sea of Marmara, and the
Dardanelles [which
together form a water link
between the Black Sea and
the Mediterranean.
European Turkey [eastern
Thrace or Rumelia in the
Balkan peninsula) includes
3% of the country.
V Turkey's area, inclusive of lakes, occupies
783,562 square kilometres [300,948 sq mi),
of which 755,688 square kilometres
[291,773 sq mi) are in Southwest Asia and
23,764 square kilometres [9,174 sq mi) in
Europe.
V Turkey is
encircled by
seas on three
sides: the
Aegean Sea to
the west, the
Black Sea to
the north and
the
Mediterranean
Sea to the
south.
V Turkey also
contains the
Sea of
Marmara in the
northwest.
V Istanbul is the only city in
the world located on two
continents, Europe and
Asia. In its thousands of
years of history, it has been
the capital of three great
empires - Roman,
Byzantine and Ottoman.
´ Bosphorus is a natural strait connecting the
Black Sea to the Sea of Marmara, thus being a
very strategic waterway.
´ It was a river in the valley during the Tertiary
period of the continents, which was drowned by
the sea at the end of this period
´ . It's length is 32 kilometers [20 miles) in the north
to south direction, width varies between 730-
3300 meters [800-3600 yards), and depth is
between 30-120
V rocatio : southeastern Europe and
southwestern Asia [that portion of Turkey
west of the Bosporus is geographically
part of Europe), bordering the Black Sea,
between Bulgaria and Georgia, and
bordering the Aegean Sea and the
Mediterranean Sea, between Greece
and Syria
xeographic coordi ates: 39 00 N, 35 00 E
Map refere ces: Middle East
V Maritime
claims:

V territorial sea: 6
nm in the
Aegean Sea;
12 nm in Black
Sea and in
Mediterranean
Sea exclusive
economic
zone: in Black
Sea only: to the
maritime
boundary
agreed upon
with the former
USSR
V ’errai : high central plateau [Anatolia); narrow
coastal plain; several mountain ranges

V ëlevatio extremes:

V lowest point: Mediterranean Sea 0 m highest point:

Mount Ararat 5,166 m
V ra d use: arable land: 30.93%
permanent crops: 3.31% other: 65.76%
[2001)

Àrrigated la d: 42,000 sq km [1998 est.)

Natural hazards: very severe

earthquakes, especially in northern
Turkey, along an arc extending from
the Sea of Marmara to Lake Van
V ë viro me t - curre t issues: water
pollution from dumping of chemicals
and detergents; air pollution,
particularly in urban areas;
deforestation; concern for oil spills from
increasing Bosporus ship traffic
ë viro me t - i ter atio al agreeme ts:
party to: Air Pollution, Antarctic Treaty,
Biodiversity, Climate Change,
Desertification, Endangered Species,
Hazardous Wastes, Ozone Layer
Protection, Ship Pollution, Wetlands
signed, but not ratified: Environmental
Modification

V xeography - ote: strategic location

controlling the Turkish Straits [Bosporus,
Sea of Marmara, Dardanelles) that link
Black and Aegean Seas; Mount Ararat,
the legendary landing place of Noah's
Ark, is in the far eastern portion of the
country
 ñge structure: 0-14 years: 26% [male
9,232,439/
V female 8,897,135)
V 15-64 years: 67.3% [male
23,806,367/female 23,053,536)

V 65 years and over: 6.7% [male

2,140,242/female 2,530,840) [2005 est.)
Media age: total: 27.7 years male:
27.52 years female: 27.89 years [2005
est.)
Populatio growth rate: 1.09% [2005
est.)
V aeath rate: 5.96 deaths/1,000
population [2005 est.)
Net migratio rate: 0
migrant[s)/1,000 population
[2005 est.)
Sex ratio: at birth: 1.05
male[s)/female under 15 years:
V 1.04 male[s)/female 15-64 years:

V 1.03 male[s)/female 65 years

and over:

V 0.85 male[s)/female total

population: 1.02 male[s)/female
[2005 est.)
V
À fa t mortality rate: total: 41.04
deaths/1,000 live births male: 44.68
deaths/1,000 live births female: 37.22
deaths/1,000 live births [2005 est.)
rife expecta cy at birth: total
population: 72.36 years male: 69.94
years female: 74.91 years [2005 est.)
’otal fertility rate: 1.94 children
born/woman [2005 est.)

V ÃÀ
ñÀaS - adult prevale ce rate: less

than 0.1% - note - no country specific
models provided [2001 est.)
V îailways:
V total: 8,697 km
standard gauge:
V 8,697 km 1.435-m
gauge [2,122 km
electrified) [2004)
V Ãighways:

V total: 354,421 km paved: 147,404 km

[including 1,851 km of expressways)
unpaved: 207,017 km [2002)
V Úaterways:
1,200 km
[2003)

Pipeli es: gas

3,177 km; oil
3,562 km
[2004)
V Ports a d
harbors:
V ëco omy - overview: Turkey's dynamic
economy is a complex mix of modern
industry and commerce along with a
traditional agriculture sector that in 2004
still accounted for more than 35% of
employment.
V The public sector fiscal deficit exceeds
6% of GDP - due in large part to the
huge burden of interest payments, which
accounted for more than 40% of central
government spending in 2004, and to
populist spending.
V Turkey's economy grew an average of 6.0% per year from 2002
through 2007³
V one of the highest sustained rates of growth in the world. Despite
the 5.0% growth target for 2008, as a result of the 2008 global
contraction Turkey's economy was expected to have grown
about 3.5% in 2008.

V Inflation and interest rates have fallen significantly, the currency

has relatively stabilized, government debt has declined to more
supportable levels [38.5% of GDP), and business and consumer
confidence have returned. At the same time, booming
economic growth has contributed to a growing current account
deficit [-39.0% of GDP).

V Though Turkey's vulnerabilities have been greatly reduced, the

economy could still face problems in the event there is a sudden
change in investor sentiment, as seen with 2008 market
conditions.

V Continued implementation of reforms, including tight fiscal

policy, and securing independent Central Bank monetary
policies is essential to sustain growth and stability
V ë ergy.
V mossil fuels account for 68% of the total
installed capacity and hydro,
geothermal, and wind account for the
remaining 32%. Electricity demand in
Turkey has been above the average rate
of GNP growth over the last few years
V In 2004, the Parliament approved a
petroleum market reform bill that
liberalized consumer prices and would
lead to the privatization of the state
refining company TUPRAS, which was
privatized in 2005. Turkey has a refining
capacity of 714,275 barrels per day
[b/d).
V
V The main contributor to the GNP was industry,
though, making up more than 30%.
Economy on the level of ordinary Turks, have
worsened in the last years, as inflation has
been at the level of 100% or more,

V while normal wages have been risen at a lower

speed. There have been serious measures on
trying to bring the Turkey's foreign debts down,
which means that a large part of the national
production has been sent out of the country.
V À dustry (18.9% of xNP):
V

V ’rade:

V ë 
 [merchandise)--[2005) $73.5 billion; [2006) $85.5 billion;

[2007) $107.2 billion; [2008, as of November) $124.3: textiles and
apparel, industrial machinery, iron and steel, electronics,
petroleum products, and motor vehicles.

V 
 [merchandise)--[2005) $116.8 billion;

V [2006) $139.6 billion; [2007) $170.1 billion;
V [2008, as of November) $190.5 billion: petroleum, machinery,
motor vehicles, electronics, iron, steel, plastics precious metals.
V (


--Germany, U.S., Italy, mrance, Russia, Italy, Japan,
Netherlands, U.K.
V
xaP: 5.3% [2003)

xaP - real growth rate: 8.2% [2004 est.)

xaP - per capita: purchasing power

parity - $7,400 [2004 est.)
V Populatio below poverty li e: 20% [2002)
Ãousehold i come or co sumptio by
perce tage share: lowest 10%: 2.3% highest
10%: 30.7% [2000)
aistributio of family i come - xi i i dex: 42
[2003)
À flatio rate (co sumer prices):
V rabor force: 25.3 million note: about 1.2 million Turks work
abroad [2003 est.)
rabor force - by occupatio : agriculture 35.9%, industry
22.8%, services 41.2% [3rd quarter, 2004)

employme t rate: 9.3% [plus underemployment of 4.0%)
[2004 est.)
Budget: revenues: $78.53 billion expenditures: $110.9
billion, including capital expenditures of NA [2004 est.)

À dustrial productio growth rate: 16.5% [2004 est.)

V Electricity - production: 139.7 billion kWh
[2003)

Electricity - production by source:

Electricity - consumption: 117.9 billion

kWh [2002)
V Oil - production: 48,000 bbl/day [2001 est.)

Oil - consumption: 619,500 bbl/day [2001

est.)

Oil - proved reserves: 288.4 million bbl [1

January 2002)
V Natural gas - productio : 312 million cu m [2001 est.)
Natural gas - co sumptio : 15.94 billion cu m [2001
est.)

Natural gas - proved reserves: 8.685 billion cu m [1

January 2002)

ëxports: $69.46 billion f.o.b. [2004 est.)

V
ëxports - commodities: apparel, foodstuffs,
textiles, metal manufactures, transport
equipment

Àmports: $94.5 billion f.o.b. [2004 est.)

Àmports - commodities: machinery, chemicals,
semi-finished goods, fuels, transport equipment
V aebt - exter al: $16.9 billion [2004 est.)
ëco omic aid - recipie t: ODA, $635.8 million [2002)
ëxcha ge rates: Turkish liras per US dollar - 1,425,500 [2004),
V 1,500,900 [2003), 1,507,200 [2002),
V 1,225,600 [2001), 625,200 [2000)

V Note:
V on 1 January 2005 the old Turkish Lira [TRL)was converted
to New Turkish Lira [ TL) at a rate of 1,000,000 old to 1 New
Turkish Lira

V
revent financial district in Istanbul
V Organized marketplace in which
stocks, Common Stock Equivalents
and bonds are traded by members of
the exchange, acting both as agents
[brokers) and as principals [dealers or
traders).
V In
terms of capital flows, Turkey is far
more open many European countries.

V minancial liberalization and financial

deepening have not Turkey's liberal
financial markets have been facing
serious destabilising effects of financial
globalization.
V MKB is the only corporation in Turkey for
securities exchange established to
provide trading in equities, bonds and
bills, revenue-sharing certificates, private
sector bonds, foreign securities and real
estate certificates as well as international
securities.
V The ISE was founded as an autonomous,
professional organization in early 1986.

V It is situated in a modern building

complex in Emirgan, on the European
side of Istanbul since May 15, 1995.
V Trading hours are 09:30-12:00 for the first
session and 14:00-17:00 for the second
session, on workdays.
V All ISE members are incorporated banks
and brokerage houses.
V Memberships of ÀSë
V The ISE is a full member of
V mederation of Euro-Asian Stock
Exchanges [mEAS),
V International Securities Services
Association [ISSA),
V International Capital Market Association
[ICMA),
V World Economic morum [WEm) and
V an affiliate member of
V International Organization of Securities
Commissions [IOSCO).
V Investment is also affected by higher
stock prices. With a higher stock price, a
firm can raise more money per share to
finance investment projects.
V They help to Create investment
opportunities for small investors by enabling
them to own shares of the companies as
large investors, and to enjoy similar rates of
return

V Its serves as an economic Barometer , An

economic recession, depression, or
financial crisis could eventually lead to a
stock market crash. Therefore the
movement of share prices and in general of
the stock indexes can be an indicator of
the general trend in the economy..
What type instrument stock
Exchange stanbulU
V Although introduced only a short time
ago, stock index futures have become
an extremely important trading
instrument throughout world financial
sectors. In our country, Turkey, a decision
has recently been made to launch a
mutures & Options Market within the
Istanbul Stock Exchange. The first
instrument that is planned for trading in
this market is stock index futures
V In this thesis I discuss the legal, financial,
and structural framework of stock index
futures contract trading on the Istanbul
Stock Exchange. I offer a summary of the
regulatory and institutional foundations
required for successfully implementing
futures trading in Turkey.
V Any study on stock index futures trading must include a
discussion of the theoretical framework of futures markets-
institutions, operation mechanisms, and other features of a
well-organized futures market must also be analyzed.
Stock indexes require special attention, as they represent
the underlying assets of stock index futures. I review the
techniques of constructing an index and the various
factors that influence it. I operate on the assumption that
stock indexes are suitable instruments for serving as a
foundation of futures contracts. I explain specification and
pricing techniques of stock index futures and argue that
they may indeed represent a good alternative for
managing stock market risk.
MARKET CONDUTION
REGULATIONS
V Communiqué On The Principles And Procedures mor The
Administrative mines To Be Imposed On Relating To The
Reporting To Be Made Under The Scope Of Banking Data
Transfer SystemRegulation on Accounting Practices
PrinciplesBoard Resolution
V Nr. 1084 on the mull Insurance Guarantee Announcement

V dated December 6, 2000 of the GovernmentBoard

Resolution

V Nr. 1083 on Savings Deposits Subject to Insurance and

Premiums to be Collected by the Savings Deposit
Insurance mundDraft Act on Micro-minancing Institutions

V Circular Regarding the Enforcement of Article 30 of the

Regulation on Accounting Practice
V Regulation on the Preparation and Publication of
Interim minancial Statements of Private Deposit-
Money BanksRegulation
V on Principles and Procedures of Second
Independent Audit to be carried out in Banks
According to Provisional
V Article 4 of the Banks Act no. 4389Regulation on
Measurement and Assessment of Capital
Adequacy of Bank
LARGEST COMPANIES
V Koc Holding,
V Sabanci Holding
V , Oyak Holding,
V Tupras-Türkiye Petrol Rafinerileri
V Dogus Insaat,
V Dogan Group
V , Erdemir,
V Vestelkom
V , Turkcell Iletisim Hizmetleri
V , Turk Ekonomi Bankasi [TEB)
V , Orhan,
V Cimentas
V AkBank
V Asia Cell,
V Bedas,
V Botas,
V BRK Elektronik LTD,
V Ciner,
V Turgay,
V Danonesa
MARKET CAPITALIZATION Om
ISTANBUL STOCK EXCHANGE
V Database Table Name: Turkey market
capitalization of Istanbul Stock Exchange
companies in US dollars for 1994 to 2001

Database tables provide quantitative market

research information in a concise tabular
format.
V Over one thousand database tables are
currently available from Research and Markets.
V These tables / charts allow you to quickly
understand market trends and drivers and can
form the basis for making market forecasts.
 Turkish Industry
V ßÀ dustrybasedgrowth" has alwaysbee o eof
themai objectivesfor’urkisheco omy.
V öö’urkishi dustrymai lydepe dso theprivatesectoractivities.
’heshareof publicsectori thema ufacturi gi dustryhas
bee decreasedthroughprivatisatio activitiesi rece tyears.

V öö9urre tly, moretha 80 % of productio a dabout95 % of

grossfixedi vestme ti thema ufacturi gi dustryis
realizedbytheprivatesector
Turkish mood Industry
EQUIPMENT
V 9o structio ëuipme ts Sector has xrow 62,7% i export
sales i the first 12 Mo ths Period.
V Forklift ’rucks a d Material Ãa dli g Storage ëuipme t
Sector has grow 44.8% i export sales last year.

V 9o structio ëuipme ts Sector export sales Ãas bee

reached to the ew record by 803 Millio
Sa sales last
year.
V Forklift ’rucks a d Material Ãa dli g Storage ëuipme t
export sales have bee reached to the 138 Million USD last
year.
V Istanbul Stock Exchange
V Resitpasa Mah Tuncay Artun Cd,
Istanbul34467, Turkey
V ’el: [90) 2122982100
V Úeb Site: www.ise.org
V Busi ess aescriptio : Stock Exchange
Services
V NñÀ9S: Securities and Commodity
Exchanges
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