Security Lending and The relationship between Short Selling in ISE and Takasbank Lending Borrowing Market Commission Rates

In this work, the mechanics of equity lending and its importance for equity markets have been studied. In this domain, it is investigated whether the rebate rates in the equity lending market can give us information about short selling activities at the ISE. By using Takasbank Equity Lending Market data, the relationship between the rebate rates and short selling at ISE has been analyzed. The year 2008 has been chosen as the study period because it has the effects of 2007 financial crises. The mostly traded equities in Takasbank Equity Lending Market which also belong to the banking sector have been included in the analysis and the Granger Causality test has been used as the methodology.