MSCI freezes index changes for Turkish equity securities

MSCI Inc. (NYSE: MSCI) announced it will apply an immediate freeze on certain index-related changes for Turkish equity securities, effective immediately and until further notice, citing concerns about market integrity.

Under the freeze, MSCI will not implement increases to Foreign Inclusion Factors or Number of Shares, additions to the MSCI Turkey Investable Market Index, or upward migrations across size-segment indexes.

According to a statement from MSCI, institutional investors have raised concerns about possible coordinated trading through fund holdings closely affiliated with certain smaller listed companies in Turkey, which undermines the reliability of free float estimates. Turkish authorities have introduced a framework that excludes fund-held stakes from free float where the beneficial owner is already excluded, but MSCI said additional time is needed to assess whether these measures are delivering the structural improvements investors require.

MSCI said it will continue to seek feedback from market participants on the functioning of the Turkish equity market. If sufficient progress is not evident by June 2027, MSCI said it will consider additional measures, including a consultation on a potential reclassification of the MSCI Turkey Indexes from Emerging Market to Frontier or Standalone Market status.

The treatment of the MSCI Turkey Indexes will be reassessed as part of the MSCI 2027 Annual Market Classification Review.

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