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Global index provider Morgan Stanley Capital International (MSCI) has marked down a key accessibility rating for Türkiye's stock market in its 2026 Global Market Accessibility Review. The U.S.-based firm is widely used by asset managers around the world to allocate investments and benchmark portfolios.
The firm cited concerns over market transparency, trading restrictions and signs of coordinated trading activity that can undermine price formation. Türkiye was one of just two emerging markets, alongside Indonesia, to receive a downgrade in the Information Flow category this year.
The index provider pointed to concerns over the ability of international institutional investors to assess the true free float of listed companies and rely on market prices when constructing portfolios or tracking indexes.
According to MSCI, indications of coordinated trading and a lack of transparency around shareholdings can distort price discovery and increase volatility. The firm noted that similar concerns emerged in Indonesia, leading it to lower the Information Flow rating for both markets.
"Similar behaviors have been observed in Türkiye, particularly among small-cap listed companies. These issues may impair price formation and amplify volatility," MSCI wrote.
The review noted that information flow is a key element of market accessibility, with investors placing importance on timely disclosures, transparency, data quality and the integrity of prices used to value securities.
Addressing the issue, the Capital Markets Board (CMB) recently tightened free-float calculation rules, aiming to improve transparency around beneficial ownership
Under the new framework, shares held indirectly through hedge funds and certain fund structures by investors already classified as non-free-float shareholders will no longer be included in a company's free-float ratio.
MSCI also highlighted the continued use of market-wide restrictions in Türkiye. The report noted that Borsa Istanbul reinstated a blanket short-selling ban for all listed securities on March 2, 2026, and has extended the measure multiple times since then.
"Frequent changes in rules and the continuous imposition of restrictions are not a desirable feature of a well-functioning short-selling framework," MSCI said.
Despite the downgrade, MSCI pointed to ongoing efforts aimed at modernizing Türkiye's market infrastructure. Among the planned reforms, the report highlighted that Borsa Istanbul has launched a formal review of a potential transition to a T+1 settlement cycle and opened testing environments for market participants earlier this year.
Preparations are expected to be completed by the end of 2026, though authorities have not yet announced an implementation date.
Borsa Istanbul has 608 listed companies, with a combined market capitalization of ₺20.9 trillion ($449.7 billion) as of June 19.
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