ANNUAL REPORT JUNE 2010
FEDERATION OF EURO-ASIAN STOCK EXCHANGES
CENTRAL REGISTRY AGENCY INC.
Dr. Yakup Ergincan
CEO
The adverse effects of the global financial crisis
that heavily hit the world markets by the last
quarter of 2008 were mostly felt in last year.
We believe that ensuring a trusted post-trade
infrastructure will be one of the crucial elements
to constitute investor confidence towards a full
economic recovery.
Through the crisis capital markets regulators all
over the world emphasized the role of safe and
secure financial infrastructures to prevent further
crisis in the future. It is now widely accepted that
countries should review and adapt their
infrastructures to reflect the new risk management
requirements. CRA’s efforts in this framework to
implement an information security system at
global standards has been awarded with the
prestigious ISO/IEC 27001:2005 certification by
SGS United Kingdom in 2009.
History and Development
CRA was established in accordance with the Article
10/A of the Turkish Capital Markets Law in 2001 as the
central depository for and registrar of dematerialized
capital market instruments comprising equities, mutual
funds, exchange traded funds, corporate bonds and
commercial papers and rights affixed thereon with
respect to issuers, intermediary institutions, and
beneficial owners.
Over the past four years since the
dematerialization process for equities and
mutual funds began CRA has been working
to extend the range of assets held in its
electronic book-keeping system.
Over the past four years since the
dematerialization process for equities and
mutual funds began CRA has been working to
extend the range of assets held in its electronic
book-keeping system. In this regard, the issue of
the first dematerialized bank bills was one of the
highlights of 2009 for us. Other asset types,
including warrants, are expected to be added to
the depository held securities this year.
In 1 June 2009 we have finalized the first phase
of the SWIFT Integration Project in cooperation
with Takasbank which will allow CRA to
disseminate corporate action information via
SWIFT by ISO compliant messages based on
information provided by issuers through our
system. This project will take us one step closer
to the full automization of corporate actions
processes which will bring dramatic reductions in
costs and operational risk.
obligations arising from equities transactions of
intermediary institutions and banks for which a
liquidation or bankruptcy decision is made by
regulatory authorities.
Form of Securities
Dematerialized.
Legal Status
Joint stock company.
In November of 2005, all stock certificates traded at
the Istanbul Stock Exchange, including the certificates
formerly kept at Takasbank (ISE Settlement and
Custody Bank), were dematerialized. Between April
2005 and March 2006, all mutual fund certificates
were dematerialized on the CRA platform. In August
2006, after approximately 5 years, first corporate bond
in Turkish Capital Markets was issued through CRA. In
September 2009 first dematerialized bank bills were
issued.
Type of Commercial Entity
For-profit, user-owned joint stock company.
Regulated by
CRA’s overall functions are subject to the oversight and
approval of the CMB.
Size of the Investors Protection
Fund
US$ 119 million.(as of year end)
All depository operations regarding dematerialized
capital market instruments (e.g. opening of investor
accounts, corporate actions, securities issues) are
conducted by CRA participants via the Central
Dematerialization System software, CDS, a proprietary
software developed in-house. CRA also acts as the
securities agent for on-exchange settlements of
equities traded at the ISE and real time DVP
settlements of equities for Securities Lending and
Borrowing facility of Takasbank through the integrated
system with Takasbank.
CRA also manages and represents the Investors
Protection Fund, an investor protection scheme against
AFFILIATE MEMBER
Ownership
30% Istanbul Stock Exchange (ISE)
64.9% ISE Settlement and Custody Bank (Takasbank)
5% The Association of Capital Market Intermediary
Institutions of Turkey (TSPAKB)
0.1% Istanbul Gold Exchange (IGE)
Board of Directors: 7 Members
The Capital Markets Board of Turkey (CMB): 1 (Chairman)
ISE: 2
Takasbank: 2
TSPAKB: 1
CRA: 1 (CEO of CRA)
Aside from managing the Investors Protection
Fund investor services that are targeted to
minimize any viable risks and/or operational
errors has been one of the primary business
concentration areas of CRA. To this end, we
introduced the new Electronic Customer Alert
System (e-CAS 2.0) which will send account
movement notifications to investors through SMS
and e-mail messages, even without such an
investor request. In its later phases the system
will prevent specific account activities for
unsubscribed investors and restrict some
transactions conditional on investor confirmation.
We are looking forward to react to the challenges
of a new era in the global financial system and
the post-trade industry We will be working closely
with our stakeholders to assist in achieving such
an immense goal.
Memberships to International
Organizations
European Central Securities Depositories Association
(ECSDA)
International Securities Services Association (ISSA)
Future Outlook
CRA and Takasbank's integrated SWIFT system went
live on 1 June 2009, and has allowed CRA to
disseminate corporate action information via SWIFT by
ISO compliant messages based on information
provided by issuers through the CDS. The service
which mainly targets foreign institutional investors is the
first phase of Takasbank and CRA’s SWIFT integration
project.
CRA also finalized a number of projects which
improved the level of investor services provided by the
depository. CRA’s Web Investor page through which
investors can get information and apply investor
blockages on their securities holdings has been
revamped. The new interface now allows investors to
get visual data on their portfolios.
Furthermore, CRA’s Electronic Customer Alert System
(e-CAS), which was developed as a precaution against
any errors or misusages concerning investors’
securities, has been upgraded last year. The new e-
CAS 2.0 will now send account movement notifications
through SMS and e-mail messages, even without an
investor request, to minimize or remove viable risks.
CRA was also awarded with ISO 27001 information
security certification by SGS United Kingdom in 2009.
* Please refer to page 96 for the Turkey country report.
CONTACT INFORMATION
Address Askerocagi Cad. Suzer Plaza No: 15 Kat: 3 34367 Elmadag/Istanbul
Tel +90 (212) 334 57 00 Fax +90 (212) 334 57 57
Contact Name Mr. Ozgur Uysal E-mail [email protected] Website www.mkk.com.tr
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