TAKASBANK
Confidence and Reliability in
Securities Services
Emin Çatana
Chairman
Takasbank provides
ISE members with an
organized Money
Market and banking
services including
cash credits,
securities
lending/borrowing,
and cross-border
custody and
settlement services.
INTRODUCTION
Takasbank is the “Central Securities Depository
of Turkey”, “Clearing and Settlement Center for
the Istanbul Stock Exchange (ISE)” and the
“National Numbering Agency of Turkey”,
authorized by the Capital Markets Board. Apart
from these unique services for the Turkish
capital market, Takasbank provides ISE
members with an organized Money Market and
banking services including cash credits,
securities lending/borrowing, and cross-border
custody and settlement services.
Established under the Turkish Banking Law and
classified as a "Bank that cannot accept
deposits", Takasbank is a special purpose bank
dedicated to securities services in Turkey.
Takasbank is owned by the ISE (23.9%) and
ISE members (22 banks and 72 brokerage
houses with 40.5% and 35.6% stake in the
share capital, respectively).
REGULATORS AND LEGAL FRAMEWORK
Related with its securities services and
functions, Takasbank is supervised by the
Capital Markets Board. The Banking Regulation
and Supervision Board and the Central Bank of
Turkey are those authorities for the supervision
of Takasbank related with its banking operations.
The Capital Markets Law, Related Decrees of
the Capital Markets Board, Settlement
Regulations of the ISE constitute the legal
framework for Takasbank’s securities services
operations Operational rules (regarding
settlement, custody and other services) that are
announced by Takasbank in the form of
General Letters and the related standard
service level agreements specify the rights and
obligations of its members.
PROTECTION OF CUSTOMERS’ ASSETS
The Customer Name Based Custody System
set up by Takasbank upon the requirement of
the Capital Markets Board oversees a two-tier
level of custody records; in the first level for
these intermediaries (banks and brokerage
houses) and in the second level for customers
of these members. The records of this system
are recognized as proof of ownership, and
therefore, protect the customer’s assets against
any attachment on the member’s assets.
CONTACT INFORMATION
Contact Name
TAKASBANK
International Department
E-mail
[email protected]
Website
www.takasbank.com.tr
Alo-Takas and TakasNet services provide
investors with the facility to reach the
information on their sub-account balances
recorded at Takasbank, which enables them to
cross check the information that they get from
the brokerage house or custodian banks related
with their holdings. Investors are also able to
put blockage on their assets held with their
intermediary, which ultimately prevents any
misuse of their holdings.
Related with the protection of customer assets
in the case of the insolvency of an intermediary,
rules are defined in Capital Markets Law No: 46
pp. 2 and 5. The Law, which states that in case
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PAGE 8
of the prevention of intermediary’s operations
by the Capital Markets Board due to its financial
weakness or insolvency, client assets are
protected against the intermediary’s creditors.
Clients access their holdings through the
Investment Protection Fund which is in charge
of carrying out the progressive and
administrative liquidation process upon the
decision of the Capital Markets Board.
The data out of the Customer Name Based
Custody System of Takasbank is accepted as
the official data by the Investor Protection Fund,
which protects the assets of the customers
against the claims of the insolvent
intermediary’s creditors.
Against any loss that might be incurred by any
client of the intermediary, which is subject to
progressive and administrative liquidation,
indemnification out of the Investment Protection
Fund is set at a maximum of TL 36.6 billion per
investor in 2004 (app.US$ 27,000 per investor).
Immobilization/Dematerialization of Securities
and Transfers of Securities by Book-entry.
According to the Commercial Code, securities
are required to be in physical form in Turkey.
Authorized by the Capital Markets Board,
Takasbank is the central securities depository
for equities in Turkey and no financial institution
other than Takasbank is permitted to safekeep
share certificates. Though not required namely
by law, equities are immobilized at Takasbank.
Settlement rules and regulations require that the
settlement related transfers are realized in
book-entry form.
The Capital Markets Law was amended in
December 1999 to regulate general aspects of
the dematerialization of securities in Turkey.
Capital markets instruments and the rights
linked to these will be kept in a computer
environment by the central registry. The Central
Registry Institution (CRI), that will act as the
central registrar for the dematerialized securities
market in Turkey, was established and received
commercial registration in September 2001.
Dematerialization is planned to start by the end
of 2004.
PRE-SETTLEMENT CONFIRMATION
Equity trading is not permitted over-the-counter
for the members of the ISE, except on odd lot
securities, and the ISE Equities Market is the
sole market in Turkey where equities can be
traded. The ISE trading platform is an
automated blind order entry system and trade
contracts are legally binding. While direct
market participants are not expected to actively
confirm the trades on T+0, the trades realized
at the ISE are binding contracts and direct
market participants receive the results of their
trades from the ISE after each trading session
(T+0) as a `trade book'. Therefore, the trades
are deemed to be 100% confirmed by the direct
participants on T+0.
There is a separate but linked (to the ISE
settlement) DVP settlement system operated by
Takasbank in which mainly indirect participants