Borsa Istanbul introduces repo-like mechanism for sukuk to aid islamic banks in managing liquidity

07 August 2018

News & Press Release

Borsa Istanbul has confirmed the launch of the Committed Transactions Market of Sukuk (CTM) and has begun the trading of Sukuk, or lease certificates as they are colloquially known.

Turkish participation banks are now able to manage their liquidity more efficiently using a newly-launched repo-like mechanism by the national stock exchange, an initiative to support the country’s Islamic banks and stimulate growth in its nascent interest-free capital market.

Borsa Istanbul has confirmed the launch of the Committed Transactions Market of Sukuk (CTM) and has begun the trading of Sukuk, or lease certificates as they are colloquially known. Based on the principles of Shariah, the CTM is open to all banks in the country and has received the greenlight from the Participation Banks Association of Turkey.

[The] CTM functions similarly to the operational rules of [the] Repurchase (repo) and Reverse Repo Markets within [the] Borsa Istanbul Debt Securities Market and lease certificates are subject to trading,” explained the bourse.


Source: IFN News, 7 August 2018

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