FEDERATION OF EURO-ASIAN STOCK EXCHANGES > YEARBOOK 2002/2003 > PAGE 9
TAKASBANK has been participating in ISO
TC68/SC4, representing Turkey on behalf of the
Turkish Standards Institute, since 1998. There
are 17 countries and 9 liaison organizations
represented at ISO TC68/SC4.
Among those standards of SC4 listed above: ISO
6166, ISO 10383, ISO 9362, ISO 13616 and ISO
15022 standards play key roles to realize STP;
that is, to prevent manual interventions, to enable
high level automated processing and to shorten
the whole transaction process.
ISO 6166 (International Securities Identification
Number - ISIN) is used to uniquely identify
securities and is allocated by national numbering
agencies (NNAs) that represent their local
financial markets. NNAs coordinate their efforts
through the Association of National Numbering
Agencies (ANNA), which has 64 members as of
February 2003. ANNA acts as the ISO
maintenance agency for ISO 6166 (ISIN). The
ANNA General Meeting created a new entity
called the ANNA Service Bureau (ASB), which
became operational in July 2001. The ASB is
envisioned as a central hub to receive and
consolidate ISIN data from ANNA members and
disseminate this information to the market via
Internet.
TAKASBANK is the National Numbering Agency
of Turkey and a member of ANNA since 1995.
In 2001, ANNA membership elected
TAKASBANK as one of its three elected
representatives at the Advisory Board of the
ANNA Service Bureau.
The ISIN has been the primary identifier for G-
bonds and T-bills in Turkey since February 2001,
used in issuance, trading and settlement. The
ISIN is widely used for cross-border transactions
in the equities market. However, it is not the
primary key for domestic equities trading and
settlement purposes. ISE indices and the Turkish
ISO TC68-SC4
parties of a securities trade (BIC is used not only
for banks, but for all financial institutions). ISO
13616 (IBAN – International Bank Account
Number) aims to identify the account number
of a customer at a financial institution to assist
error-free cross-border payments and to improve
the potential for STP, with a minimum amount
of change within domestic schemes.
SWIFT (Society for Worldwide Interbank
Financial Telecommunications) acts as the ISO
maintenance agency for MIC, BIC and for the
messaging standard (ISO 15022 - Data Field
Dictionary and Message Catalogue). ISO 15022
is a new messaging standard for securities
transactions and launched by SWIFT in
November 2002. As syntax rules are not
associated with the design of the messages and
as it is capable of carrying ISIN, BIC, MIC, IBAN
codes within the message, ISO 15022 is flexible
and facilitates STP.
In a typical securities transaction, ISIN is used
for the traded security, BIC is used for the parties
of the trade (and also for the CSD), MIC is used
for the market where the security was traded
and IBAN is used for the customer account
number where the final transfer of cash or
securities is to be made. All these reference data
are carried by the messages in a ISO 15022
message format (e.g. SWIFT messages).
Sector organizations like ISSA (International
Securities Services Association), G-30s and
IOSCO (International Organization of Securities
Commissions) all recommend the use of
international securities standards in order to
achieve STP and thus efficiency in securities
transactions. TAKASBANK follows up on all
these recommendations and uses them as a
benchmark for further improvements in its
operational layout.
SWIFT
SMPG
TAKASBANK
ANNA
ANNA Service
Bureau
Central Bank
of Turkey
lira are also among those financial instruments
that are assigned ISINs by TAKASBANK.
ISO 10383 (Market Identifier Code – MIC)
identifies exchanges and regulated markets
where securities are traded. ISO 9362 (Bank
Identifier Code – BIC) identifies financial
institutions that took place in a transaction, e.g.
Contact Information
NMPG-Turkey
Turkish Standards
Institute
TAKASBANK uses SWIFT mainly for
international services and transactions. Migration
to ISO 15022 was successful in November 2002.
Automation systems are under development for
international services and all standards described
above within the ISO 15022 layout are
embedded in this new program product of
TAKASBANK
International Department
TAKASBANK. Therefore, when this new
automation system of TAKASBANK is launched
(planned for mid-2003), it will be fully integrated
into SWIFT.
Generally, once the proprietary automation
systems of the market participants are ISO 15022
compliant and identification standards like ISIN,
BIC, MIC, IBAN are used in the market practice,
then STP within and across systems and cross-
border linkages is easy to be established and
maintained. In order to achieve this level of
integrity, the market practices for the usage of
ISO 15022 needs to be developed and further
harmonized to the utmost extent. For this
purpose, ISO TC68/SC4 and SWIFT took the
initiative and the Securities Market Practice
Group (SMPG) was established in 1998. SWIFT
sponsored the organization of the SMPG, and
the formation of the SMPG resulted in the
establishment of the National Market Practice
Groups (NMPGs) in more than 30 geographic
markets comprised of broker/dealers, investment
managers, custodian banks, central securities
depositories and regulators. The membership
of the SMPG and the NMPGs are committed to
the vision that standards in conjunction with
defined market practices will bring the industry
closer to its goal of achieving STP.
Turkish National Market Practice Group (NMPG-
Turkey) was established in July 2001 under the
initiative and chairmanship of TAKASBANK.
NMPG-Turkey is comprised of custodian banks,
broker/dealers, the Central Bank of Turkey, the
Turkish Bankers Association, the Capital Markets
Intermediaries Association and TAKASBANK.
NMPG-Turkey has carried out a solid study,
which produced three country specific reports
related with ISO 15022, up until June 2002.
These reports are “Settlement and
Reconciliation,” “Corporate Actions” and “Status
Messages.” In line with its participation in ISO
TC68/SC4, TAKASBANK informs NMPG-Turkey
on all international securities standards’ related
matters and acts as a bridge between the Turkish
securities market and ISO TC68/SC4.
TAKASBANK, with its unique functions as the
Central Securities Depository of Turkey, and the
clearing and settlement center for the Istanbul
Stock Exchange, puts high importance on
keeping up with the recent initiatives and
developments in the international securities
markets mainly centered around STP and
international securities standards. TAKASBANK’s
participation in ISO TC68/SC4, its membership
in ANNA and its membership on the Advisory
Board of the ANNA Service Bureau, its
membership to SWIFT as a user, its chairmanship
at NMPG-Turkey, together provide the
opportunities and assign responsibilities in the
development, adoption and promotion of
international securities standards for application
of STP both in Turkey and internationally.
[email protected]
www.takasbank.com.tr