FEDERATION OF EURO-ASIAN STOCK EXCHANGES
SEMI ANNUAL REPORT OCTOBER 2008
TAKASBANK ISE SETTLEMENT AND CUSTODY BANK INC.
AFFILIATE MEMBER
One of the greatest achievements of
Takasbank in 2007 was the commencement
of the acceptance of instructions through
SWIFT integrated Real Time Gross Delivery
versus Payment Takasbank System.
Emin Catana
President & CEO
Being aware of its role and responsibility for the
Turkish and international capital markets, Takasbank
continues to develop new projects and each year
adds more instruments and mechanisms to create a
productive and reliable settlement and custody
environment and thus, to offer international market
players an environment that will ensure a stable
technical and operational infrastructure,
In 2007, Takasbank started to accept instructions
through SWIFT integrated Real Time Gross Delivery
versus Payment (RTG DvP) Takasbank System. With
the realization of this project, the DvP settlement
process is integrated with SWIFT system targeting to
provide T+1 pre-matching between the custodian
banks and brokerage houses giving service to
foreign investors.
During the course of the year 2008, the
implementation of SWIFT integrated RTG DvP
system continued with great success. Responding to
system users' requests, Takasbank will be working to
introduce other transactions to the SWIFT system as
well. With this system, which involves preliminary
electronic confirmation, Takasbank expects to limit
the number of confirmation-related defaults in
General Information
Takasbank is incorporated as a non-deposit taking
investment bank and is authorized by the Capital
Markets Board of Turkey to function as: the Clearing
and Settlement Institution for the ISE markets, the
Clearing House for the Turkish Derivatives
Exchange, the National Numbering Agency of Turkey
and the Custodian for the Mutual Funds and Pension
Funds incorporated in Turkey.
Services Provided
• Central clearing and settlement for the organized
markets of ISE and Turkish Derivatives Exchange
(TurkDEX),
• Cash settlement and transfer facilities (domestic
and cross-border),
• Cross-border settlement and custody services,
• Real Time Gross DvP settlement (among brokers
and custodians) for equities via integration with
SWIFT system
• Takasbank Money Market,
• Securities Lending and Borrowing Market (SLB),
• Cash Credits,
• Allocation of ISIN for securities issued in Turkey
Brief History
Takasbank, started as a department within the
Istanbul Stock Exchange (ISE) in 1988, and originally
dealt with the provision of settlement services for
securities traded by the members of the ISE. In
January 1992 , the operations of that department
were transferred to an independent company, the
ISE Settlement and Custody Co. Inc., which was set
up under the shareholdership of the ISE and its
members. This company was then transformed into
a bank and renamed Takasbank (ISE Settlement and
Custody Bank, Inc.) in 1996.
foreign institutional investors' transactions and to
reduce the operational workload of brokerage
houses as well as settlement banks. The new
system will also increase automation in
communication between SWIFT users and
Takasbank and allow these users to provide services
that are more efficient to their customers. Takasbank
is also planning to expand the scope of transactions
that can be performed through the SWIFT system in
2008 while introducing new applications for the
RTGS delivery-versuspayment system, in line with
system users' requirements. The first field of this
implementation expansion will be the announcement
of corporate action information via SWIFT.
In the framework of FEAS efforts, Takasbank shared
its accumulated experience and knowledge about
the clearing and settlement issues in Turkish capital
markets with its peers in FEAS region. In this
context, Takasbank and the Central Securities
Depository of the Islamic Republic of Iran (CSDI)
signed a Memorandum of Understanding (MoU) in
order to establish a mutually beneficial relationship
between the two institutions. This agreement aims to
serve the goal of improving performance and
international competitiveness through mutual
Form of Securities
Dematerialized
Form of Settlement and Transfers:
Book-entry
Legal Status
Joint stock company
exchange of information, know-how and training
activities.
Within the responsibility of its convenorship of FEAS
Affiliate Task Force and with the aim of better
understanding the needs and goals of affiliate
members and to provide a more efficient as well as
productive working platform, Takasbank prepared
both a revenue/expense survey and a corporate
governance questionnaire for the Clearing
Institutions, CSDs and CCPs operating in the post-
trade arena and sent these questionnaires to the
post-trade institutions in the FEAS region. Within this
context, Takasbank is also preparing a leaflet which
would gather the existing international
recommendations and best practices related to
corporate governance in securities settlement
systems to be distributed in the 14th General
Assembly of FEAS on 10-12 November 2008 at Abu
Dhabi. I believe that the implementation of these
best practices about corporate governance would
enhance the safety and efficiency of global
settlement process within FEAS capital markets and
thus, contribute to increasing volumes of cross
border transactions among FEAS markets.
Board of Directors: 11 Members
Istanbul Stock Exchange: 4
Banks: 3
Brokerage Houses: 2
Capital Markets Board: 1
and the President and CEO of Takasbank.
Memberships to International Organizations
Association of National Numbering Agency (ANNA)
International Securities Services Association (ISSA)
Society for Worldwide Interbank Telecommunications
(SWIFT)
Association of European Central Securities
Depositories (ECSDA)
Settlement Period
Equities: T+2
Bonds and Bills: T+0
Derivatives:T+1
Type of Commercial Entity
Private sector for-profit company
Does Takasbank Act as a Central
Counter Party?
No for the ISE markets. (However, default procedure
is applied for the settlement of the ISE markets).
Yes for TurkDEX
Regulated by
Capital Markets Board
Banking Regulation and Supervision Board
Central Bank of Turkey.
Size of Guarantee Fund
(As of August 2008)
ISE Equities Market: US$ 40 million
ISE Bonds and Bills Market: US$ 48 million
Ownership
Istanbul Stock Exchange (ISE): 32.62%
Banks (19): 34.48%
Brokerage Houses (67): 32.90%
Future Outlook
In 2008, Takasbank intends to:
• Continue its efforts to become a Central
Counterparty
for equities and establish a central collateralization
system
• Providing access to the SWIFT system through
Takasbank network for non-SWIFT member
institutions ;
• Establishment and implementation of a distribution
and settlement system for investment fund units on
the integrated system with the CRA
• Development and expansion of the scope of
Investment Fund Custody System;
• Contribute to the development of international
standards for securities and implementing these
standards in Turkey.
• Give-up process for TurkDEX transactions;
• Creation of an electronic securities data base
• Unbundling of Takasbank services and initiation
of service/product based pricing system
* Please refer to page 80 for the Turkey country report.
CONTACT INFORMATION
Contact Name Ms. Filiz Kaya
E-mail [email protected]
Website www.takasbank.com.tr
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