FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT APRIL 2009
TAKASBANK ISE SETTLEMENT AND CUSTODY BANK INC.
AFFILIATE MEMBER
During the course of the year 2008, Takasbank
continues to improve the operational and
procedural infrastructure for facilitating a
dynamic, reliable and well-established
settlement and custody system for both local
and international market participants.
Emin Catana
President & CEO
During the course of the year 2008, Takasbank
continues to improve the operational and procedural
infrastructure for facilitating a dynamic, reliable and
well-established settlement and custody system for
both local and international market participants. As
such in previous years, Takasbank’s main route in
2008 was to endeavor further to implement the
internationally accepted standards and
recommendations in order to reduce the causes of
fragmentation and inefficiencies based in market
practice/regulatory requirements, tax procedures
and issues of legal certainty.
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 Iran (CSDI) signed a Memorandum of
Understanding, which aims to establish a mutually
beneficial relationship between two institutions,
increase the competition and performance within the
settlement transactions by exchanging information
on local and international laws and regulations on
the 26th of August 2008. On the other hand,
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.
Takasbank with the cooperation of the Central
Registry Agency provided consulting services to the
National Depository Center of Azerbaijan under the
Islamic Development Bank grant project on capacity
building of the State Committee for Securities of the
Republic of Azerbaijan.
Within the responsibility of its convenorship of FEAS
Affiliate Task Force, Takasbank with the cooperation
of the Affiliate Task Force Members and the FEAS
Secretariat prepared the “International Corporate
Governance Principals for Clearing and Settlement
Institutions & CSDs Recommendations and Best
Practices” leaflet and distributed to all FEAS
members at the General Assembly Meeting held in
November 2008. In addition to this, Takasbank
revised the Revenue and Expense Survey for the
FEAS Stock Exchange members and prepared a
similar survey for the post trade services. This survey
was sent to the related institutions by the FEAS
Secretariat. Takasbank sent an invitation letter via
FEAS Secretariat to all institutions offering post trade
services in the FEAS region. This letter invited all
related institutions to become an affiliate member of
FEAS and share capital market experiences with
Form of Securities
Dematerialized
Form of Settlement and Transfers:
Book-entry
Legal Status
Joint stock company
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?
Takasbank acts as a Central Counter Party for
TURKDEX, but does not act as a Central Counter
Party for ISE markets
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 30 million
ISE Bonds and Bills Market: US 37 million
Ownership
Istanbul Stock Exchange (ISE): 32.63
Banks (19): 34.48%
Brokerage Houses (67): 32.89
other members in order to create added value in
Task Force studies and contribute to the mission of
the FEAS for future development and promotion of
the individual securities markets.
Takasbank participated at the second Member Stock
Exchange meeting of the Organization of Islamic
Conference (OIC) in October 2008 and informed the
members on the settlement and custody systems of
the Turkish capital markets. At the meeting, the
participants who are the FEAS members agreed to
create working groups in order to improve capital
market developments of the member countries and
elected Takasbank to chair the working group.
As per date, the Affiliate Members Task Force has
realized remarkable contributions for improving the
post trade services in FEAS region, but in a world
getting closer to global integration in financial areas,
industry’s needs are both increasing and also
changing day by day. So, continuous efforts and
contributions should be more actively maintained in
order to assist in the mission of the FEAS for future
development and promotion of the individual
securities 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)
Federation of Euro-Asian Stock Exchange (FEAS)
Institute of International Finance (IIF)
Future Outlook
In 2008, Takasbank intends to:
• Continue its efforts to become a Central
Counterparty
for equities and establish a central collateralization
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
•Establishment and implementation of Electronic
Trading Platform for Commoditites Exchange;
•Development and integration of the collateral and
risk management software for Turkdex Options
market;
• Development of an Electronic Fund Platform to
create a larger distribution channel for market
participants;
•Creation of software and system infrastructure for
physical delivery of commodity products such as
gold, cotton and foreign currency.
* Please refer to page 74 for the Turkey country report.
CONTACT INFORMATION
Contact Name Ms. Filiz Kaya
PAGE 150
E-mail [email protected]
Website www.takasbank.com.tr