ANNUAL REPORT JUNE 2010
FEDERATION OF EURO-ASIAN STOCK EXCHANGES
TAKASBANK ISE SETTLEMENT AND CUSTODY BANK INC.
AFFILIATE MEMBER
Takasbank has accomplished many
innovative projects and created new
mechanisms in the year 2009.
Emin Catana
President & CEO
Takasbank has accomplished many innovative
projects and created new mechanisms in the year
2009 aiming at enhancing market efficiency and
upgrading the services provided to the market
participants. During the course of the year, although
difficulties arising from the sub-prime mortgage crisis
increased its pace, Takasbank, with the knowledge of
the need for a more reliable and stable technical and
operational infra-structure in crisis times, showed
remarkable progress in terms of developing the infra-
structure underpinning Turkish capital market clearing
& settlement systems.
Takasbank, as the convenor of FEAS Affiliate Task
Force (TF), organized the fifth meeting of the Task
Force (TF) combined with a Workshop and hosted
these meetings in Antalya on 22-23 October 2009
together with Central Registry Agency (CRA). In these
meetings, TF endeavored to increase the number of
members of the FEAS Task Force, thereby to share
views, information and provide more harmonization
on a wider platform in the FEAS region. Post-trade
institutions operating in the FEAS region were invited
to be a member of the Task Force in order to create
an opportunity to exchange views and experience on
the key issues in the industry and respective markets.
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 sector-specific bank and renamed Takasbank (ISE
Settlement and Custody Bank, Inc.) in 1996.
Also TF aimed to express the importance of
harmonization of clearing, settlement and custody
services in cross border transactions in the FEAS
region and emphasized the importance of the
integrity of post-trade systems through effective
business continuity management.
Within this framework, Takasbank, with the
cooperation of the Affiliate Task Force Members and
FEAS Secretariat prepared the “Business Continuity
and Disaster Recovery Standards and Best Practices
for Post-Trade Institutions” leaflet and distributed to
all FEAS members at the fifth meeting of the TF. It
was also underlined that business contingency
standards advice international best practice in
business continuity of the post-trade institutions.
These best practices include creation and
implementation of improvements in operational risk
management practices, further harmonization of
global, legal and regulatory environment and
improved business continuity for providers of post-
trade services.
In addition to these, a sub-working group was formed
under the convenorship of Takasbank. This sub-
working group aimed to analyze local infrastructures
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 Agency
Central Bank of Turkey.
Size of Guarantee Fund
(As of December 2009)
ISE Equities Market: US$ 35 million
ISE Bonds and Bills Market: US$ 42 million
Ownership
Istanbul Stock Exchange (ISE): 32.63%
Banks (19): 34.48%
Brokerage Houses (66): 32.89%
* Please refer to page 96 for the Turkey country report.
for interoperability among the post trade institutions
as a vehicle facilitating cross border transactions, to
advise on how to minimize the settlement risk of the
brokerage houses in cross border transactions as
well as to study on the feasibility of establishment of
a link-up among the post trade institutions in the
FEAS Region.
In 2009, Takasbank and Muscat Depository &
Securities Registration Company (MDSRC) signed a
Memorandum of Understanding (MoU) in order to
establish a mutually beneficial relationship between
two institutions. This agreement aims to serve the
goal of improving performance and international
competitiveness through mutual exchange of
information, know-how and training activities.
In order to enhance its international exposure,
Takasbank applied to World Federation of Exchanges
(WFE) for membership and granted “Associate
Membership” during the last quarter of 2009. With
this membership, Takasbank aims to gain access to
global capital markets and thus, pursue the latest
developments for capital 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)
Organization of Islamic Conference (OIC)
World Federation of Exchanges (WFE)
Future Outlook
In 2010, 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.
•Establishment and implementation of Electronic
Trading Platform for Commodities 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;
•Development of an Options Market Clearing and
Settlement infra-structure;
•Integration of SWIFT and DvP settlement system for
Corporate Action transactions.
CONTACT INFORMATION
Contact Name Ms. Filiz Kaya
PAGE 174
E-mail [email protected]
Website www.takasbank.com.tr