The Istanbul Stock Exchange (ISE)

The Istanbul Stock Exchange (ISE) was established in early 1986. The ISE is the only securities exchange in Turkey 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. The ISE is governed by an Executive Council composed of five members elected by the General Assembly. Mr. Huseyin ERKAN was appointed as the Chairman and Chief Executive Officer of the ISE by the government on November 2, 2007. Four other members of the Council represent the three categories of Exchange members: development banks, commercial banks and brokerage houses.As an autonomous, professional organization, the ISE enjoys a high degree of self-regulation. Its revenues are generated from fees charged on transactions, listing procedures and miscellaneous services. The profits of the ISE are retained to meet expenses and to undertake investments and are not distributed to any third parties. The ISE has its own budget.Chairman and Chief Executive OfficerThe Chairman and Chief Executive Officer of the Istanbul Stock Exchange Mr. Huseyin ERKAN is appointed by the Turkish government for a term of five years and acts as an intermediary between the members and higher authorities including the Capital Markets Board, the regulatory and supervisory authority for the Turkish capital markets, and related government departments.General AssemblyThe General Assembly, composed of ISE members, is the supreme decision-making body of the ISE. Its decisions are subject to ratification and review by the Capital Markets Board. The General Assembly also decides on important matters related to the management and administration of the ISE. Each member has one vote at the meetings which can also be convened on an extraordinary basis.Executive Council The Executive Council meets regularly to decide on matters concerning the daily operations of the ISE as well as to review listing admissions. The Council consists of five officers including the Chairman and Chief Executive Officer. All officers except the Chairman are elected by the General Assembly for a term of four years and represent all three categories of ISE members.Audit CommitteeAll accounts and financial statements of the ISE are audited by two internal auditors appointed by the General Assembly. ISE's accounts are also independently audited.Vice-ChairmenThe Senior Vice Chairman and three Vice Chairmen of the ISE act as links between the Chairman and Chief Executive Officer, the Executive Council, other departments of the ISE and intermediary institutions.Inspection BoardThe Head of Inspection Board also acts as the link between the Chairman and Chief Executive Officer, the Executive Council, other departments of the ISE and intermediary institutions. The Inspection Board closely monitors the transactions conducted on the ISE as a measure to prevent manipulation in the Stock Market and reports directly to the Head of Inspection Board. The Board also inspects and observes the compliance of members and ISE personnel with the established rules and regulations.