MSCI Freezes Turkey Indexes Amid Fund Industry Crisis and Scrutiny

MSCI Inc. froze index changes for Turkish equities effective immediately following an investment fund crisis fueled by coordinated trading and inflated stock prices.

The index provider warned that it may consider reclassifying MSCI Turkey Indexes from emerging market to frontier or standalone status if sufficient progress is not seen by June 2027.

The regulatory crackdown and scrutiny triggered a sharp selloff as investment firms were forced to liquidate assets to meet customer redemptions.