FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT JUNE 2012
TAKASBANK - ISE SETTLEMENT AND CUSTODY BANK, INC.
Takasbank has accomplished many
innovative projects and created new
mechanisms during the course of 2011.
Murat ULUS
General Manager & Board Member
Takasbank has accomplished many innovative
projects and created new mechanisms during the
course of 2011, in order to provide a more trustworthy
environment to all capital market participants and to
enhance the increase of cross-border trade volume.
Takasbank continued its studies to become a Central
Counterparty(CCP) for all organized markets operating
within Istanbul Stock Exchange and Turkish Derivatives
Exchange (TurkDEX). Initially, as the first phase of our
CCP studies, we are developing the infra-structure of
the risk management for derivative products traded
in TurkDEX markets through using SPAN software
in order to reduce risk in clearing & settlement.
Also, it is worth mentioning that as of 2 September
2011, Takasbank has begun to give trade repository
services to For-Ex trades & transactions. According
to the related comminique of Capital Markets Board,
customer collaterals and transaction details regarding
OTC Derivatives (For-Ex) should be declared to
Takasbank.
In order to expand its services globally, Takasbank
has also started studies to become an International
Central Securities Depository (ICSD) in 2011. With the
realization of this project, Takasbank aims to provide
settlement & custody services in a standard manner to
a wide variety of customers world-wide via flexible and
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
• Cen tral 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 and CFI for securities issued in
Turkey
Brief History
Takasbank started as a department within the
Istanbul Stock Exchange (ISE) in 1988. In 1996, it
was transformed into a sector-specific non-deposit
taking investment bank and renamed Takasbank (ISE
Settlement and Custody Bank, Inc.)
Form of Securities
Dematerialized
Form of Settlement and Transfers:
Book-entry
modern system infra-structure compatible with other
structures operating globally.
With a distinctive role in the development of Turkish
capital markets, Takasbank continued its efforts for
attracting interest for Turkey Electronic Fund Platform,
which started its operations on January 2011 to create
a larger distribution channel for market participants.
In 2012, Takasbank will contribute developing the
infra-structure for the integration with international fund
platforms. Also in 2011, Takasbank has begun to give
cash settlement & collateral management services
for Turkish Electricity Market as a “Central Settlement
Bank”.
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 the region. In this context,
Takasbank both provided consultancy and training.
With regard to consultancy, on 15-25 May 2011,
Takasbank provided consultancy services to National
Depository Center of Azerbaijan(NDC) for “Central
Clearing and Settlement Capacity Building within
National Depository Center” in the framework of
the project “Support for the Improvement of the
Investment and Export Climate - EuropeAid/126666/C/
SER/AZ”.
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 CentralCounter
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 of Turkey
Banking Regulation and Supervision Agency
Central Bank of Turkey
Size of Guarantee Fund
(As of December 2011)
ISE Equities Market: US$ 31 million
ISE Bonds and Bills Market: US$ 37 million
TurkDEX: US$ 47 million
Ownership
Istanbul Stock Exchange (ISE): 36.64%
Banks (16): 31.34%
Brokerage Houses (64): 32.02%
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.
As regards FEAS training efforts, on November
2011, Takasbank gave On-Site training to Armenian
and Syrian capital markets participants. Also on
October- December 2011, Takasbank gave training
to 3 groups comprising of Azerbaijan capital market
participants within the sponsorship of Turkish Republic
Prime Ministry Turkish Cooperation and Development
Administration. This training encompassed clearing
& settlement transactions as well as IT infra-structure
underlying these transactions.
Within the responsibility of its FEAS membership,
Takasbank actively participated to the Executive
Committee (EC) and Working Committee (WC)
meetings of FEAS held in Ohrid, Macedonia on May
2011 as well as to the General Assembly, EC and WC
meetings held in Almaty, Kazakhstan on September
2011. In this WC meeting, Takasbank was assigned
to a project on linkages with ISE and other member
exchanges and has been asked to give a report on
issues within the CSDs to set up linkages.
Being a member of FEAS, I sincerely want to express
that Takasbank will continue its studies on clearing,
settlement, and custody issues which will bring
enriched expertise and knowledge to post-trade
institutions operating in the FEAS region.
Memberships to International Organizations
Association of National Numbering Agency (ANNA)
International Securities Services Association (ISSA)
SWIFT
Association of European CSDs (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 2012, Takasbank intends to:
• A ctively participate to the studies of “Istanbul
International Finance Center” project;
• Continue its efforts to become a Central
Counterparty for equities and establish a central
collateralization system;
• Continue the studies to become an international
hub (ICSD) for cross-border clearing & settlement
transactions;
• Continue its efforts for attracting interest for
Turkey Electronic Fund Platform, which started
its operations on January 2011 to create a larger
distribution channel for market participants, and
developing the infra-structure for the integration
with international fund platforms;
• Contribute to the development of an Options
Market Clearing and Settlement infra-structure;
• Contribute to the development of international
standards for securities and implementing these
standards in Turkey;
• Continue its studies for the infra-sturucture
development of clearing & settlement of stock repo
market to be opened in the ISE;
• Contribute to the realization of the dematerialization
of domestic debt instruments (i.e. T-Bills and
G-Bonds).
* Please refer to page 69 for the Turkey country report.
CONTACT INFORMATION
Contact Name Ms. Necla Küçükçolak E-mail [email protected] Website www.takasbank.com.tr
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