Chronology of the Turkish Capital Markets Crisis (13–17 September 2026)

Chronology of the Turkish Capital Markets Crisis (13–17 September 2026) 1. Late-August 2026 Capital Markets Board rules (2–8% free-float caps, related-party and concentration limits), issued after MSCI warnings on coordinated trading and low-float stocks, forced hedge funds to unwind concentrated positions and triggered the liquidity crisis. 2. Portfolio managers (Pusula, Tera and others) had generated 144–164% YTD returns via illiquid, related-party holdings; the forced sales produced a redemption–fire-sale feedback loop and fund-run dynamics. 3 .On 16 September the BIST 100 dropped >5–6%, triggering market-wide circuit breakers and roughly ₺34 billion ($1 billion) in retail fund outflows; Tera defaulted on two funds totaling \~$7.5 billion AUM. 4. On 17 September the Capital Markets Board filed 38 criminal complaints (naming Katilimevim, Gundogdu Gida and Destek Finans Faktoring), imposed two-year trading bans, ordered liquidation of funds managed by seven firms (Tera, Pusula, Hedef, Atlas, A1, Pardus, Bulls), and suspended their TEFAS trading. 5. Authorities denied systemic or structural risk to Borsa Istanbul; the Central Bank increased weekly repo funding, raised interbank borrowing limits ten-fold, and eased collateral haircuts to contain the volatility. 6. Persistent vulnerabilities remain high inflation, earlier reserve depletion, and recurring trading halts; near-term stability depends on whether the 17 September liquidity backstop and liquidations halt the fund-run.