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FEDERATION OF EURO-ASIAN STOCK EXCHANGES ANNUAL REPORT APRIL 2011
ISTANBUL GOLD EXCHANGE
Our target is to establish a secure and
organized market condition in Turkey for
diamond and precious stones trading.
Osman Sarac
Chairman
Istanbul Gold Exchange targets to stimulate local
business and international attention with all other
globally competitive enterprises which will provide
Turkey to be a central hub for the gold business,
due to its strategic position, as it lies in the heart
of a major gold trade area, exposed to Middle
East, Europe and Gulf States.
In 2010 we have managed technical
infrastructural studies as well as market structures
and gold backed financial instruments studies.
Since 2007 we have been making important steps
to integrate international communities.
For the integration of the Exchange to the
international markets, there have been important
steps since 2007. In March 2008 we have been
an associate member to London Bullion Market
Association, by May 2008 we have joined World
Federation of Diamond Bourses, by February
2010, we are honored to be part of a large family
with distinguished members, FEAS as an affiliate
member. The Exchange became a member of the
Kimberley Process Certification Scheme (KPCS),
in August 2007, which aims to curb the flow of
conflict diamonds, with 49 participants worldwide.
By 2008 and 2009 IGE organized International
Gold Summit in corporation with Active Academy
to share the experiences of the Turkish and
foreign participants in the Jewelry Sector which
has been gaining important goals in the recent
years.
The Turkish gold Jewelry market has undergone a
major revival since the early 1990s with the
traditional and long-standing historical affinity for
gold jewellery adjusted for modern tastes. Turkey
is now the world’s fourth largest market for gold
jewellery, third largest manufacturing centre and
second biggest exporter.
The annual export is estimated at US$ 2.5-3
billion, part of which is from exports to
wholesalers and retailers abroad while the bulk
comes from sales to tourists sold in the local
market. By 2010, by the increase of gold prices
since 2008 huge amount of gold gold came to
the market as scrap and Turkey turned to be an
exporter of gold in the market.. The supply of
scrap gold to the market continued in 2010 and
an annual amount of 130-150 tonnes of gold was
supplied to the market.
The annual amount of gold and silver imported to
Turkey through IGE were 42 and 20 tonne. The
transactions amounts of gold and silver were
about 115 and 388 tonnes.
As a first spot trading gold exchange in the world,
IGE was founded with the principle semielectronic
system trading floor. By 2009, a new
screen-based fully electronic trading system has
been launched with remote access in order to
provide investors 24 hours trading.
Istanbul Gold Exchange is having a role of
safeguard for gold funds and gold ETF which is
listed in ISE. Over 6.000 kgs of Gold kept in the
Exchange on the name of the 24 funds.
For the upcoming years, our target is to establish
a secure and organized market condition in
Turkey for diamond and precious stones trading.
Turkey is launching its first diamond market and
aiming to become a regional trading hub for the
precious stones. Istanbul Gold Exchange is also
working on a project to launch a foreign
exchange market, base metals market and
Carbon Licenses Market. We aim to see tangible
progress on these objectives in 2011.
General Information
Istanbul Gold Exchange is a state institution which
has an autonomous system, for precious metals
trading in organized market conditions with time
and price priority. Gold prices on the Istanbul Gold
Exchange are determined by the market, generally
reflecting trends in international prices. Members of
Istanbul Gold Exchange are authorized to import
gold to Turkey.
Services Provided
• Spot gold, silver and platinum trading,
• Precious Metals Lending Market transactions,
• Physical settlement of the transactions,
• Depository for the precious metals belonging to
mutual funds and gold ETF in Turkey.
• Depository for individual investors.
• Authority for Kimberley Process Certification
Scheme for rough diamonds in Turkey.
• Determination of local and international Precious
Metals Refineries, whose products can be imported
to Turkey and be transacted in the Exchange,
Brief History
Istanbul Gold Exchange began its operations on
July 26, 1995. The Exchange has two types of
markets: Precious Metals Market, Precious Metal
Lending Market. In markets, standard and nonstandard
gold, silver and platinum are traded.
Spot gold trading started at the opening of the
Exchange. Silver and non standard precious metals
started to trade in 1999. Precious Metals Lending
Market started its operations in Istanbul Gold
Exchange on March 24, 2000 for the purpose of
bringing supply and demand into an organized
market, lowering the production costs of the
jewellery sector and securitization of gold.
Domestic or foreign banks, precious metals
companies, currency offices, precious metals
producing and marketing companies and precious
metals refineries that obtained the membership
certificate from the Under-Secretariat of Turkish
Treasury and complied with the requirements set
forth by the IGE Board of Directors can trade on the
exchange. There are 84 members consisting of 22
banks, 33 Exchange Offices, 21 Precious Metals
Brokerage Houses and 8 Precious Metals
producing and marketing companies.
Form of Settlement and Transfers
Through member accounts by Clearing Center and
Clearing Bank
Legal Status
State Institution
Settlement Period
From T+0 up to T+9
Regulated by
State Ministry
Under –Secretariat of Treasury
Board of Directors: 5 Members
President of the Exchange
Vakifbank T.A.O (bank)
Atasay Kiymetli Madenler A.S. (Precious Metals
Brokerage House)
Istanbul Altin Rafinerisi A.S. (Precious Metals
Refinery)
Yildiz Doviz ve Kiymetli Maden Tic. A.S. (Foreign
Exchange Office)
Memberships to International
Organizations
London Bullion Market Association (LBMA)
World Federation of Diamond Bourses (WFDB)
Federation of Euro-Asian Stock Exchanges (FEAS)
Future Outlook
In 2011, IGE intends to:
• To complete the new infrastructure for internet
based 24 hours trading,
•Establish the customer based ordering, trading
system and mobile trading system
• To open Diamond and Precious Stones Market,
•Establishment and implementation of Base Metals
Market in IGE,
• Establishment and implementation of Currency
Market in the Exchange,
• Establishment and implementation of Carbon,
Rights and Licenses Market in the Exchange,
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