FEDERATION OF EURO-ASIAN STOCK EXCHANGES
SEMI ANNUAL REPORT OCTOBER 2008
CENTRAL REGISTRY AGENCY INC. OF TURKEY
AFFILIATE MEMBER
xxxx
Yakup Ergincan
CEO
The electronic book-keeping system which was
introduced to the Turkish capital market by CRA
has completed its second year in 2007. Since
its establishment CRA’s main strategy has been
increasing its technological investments to
improve the operational and procedural
infrastructure for an efficient and safe settlement
and custody system. This strategy gave a well
earned fruit and our in-house developed
technological model has been awarded a merit
prize by the TUBITAK-TTGV-TUSIAD (The
Scientific and Technological Research Council
of Turkey-Technology Development Foundation
of Turkey-Turkish Industrialists’ and
Businessmen’s Association) Technology
Awards granted for the 7th time in 2007.
2007 was a pivotal year for us due to the legal
limitations imposed, according to the
provisional clause no. 6 of the Capital Markets
Law, on the management of financial and
managerial rights of physical shares which were
not dematerialized until the end of the year. The
dematerialization rate for publicly traded shares
have reached 99.84%, whereas nearly all
(99.99%) of mutual fund certificates are
dematerialized at the end of 2007. Non-publicly
traded shares have been dematerialized by
investors up to 98% of those securities’ total
market value.
Positive feedbacks from our participants
encourage us in improving our service level by
further developments in the system as CRA
continues to increase the variety of its products
and services. The types of securities eligible for
custody in CRA will be extended to include
government bonds and treasury bills in the near
future, a project which was started in
cooperation with the Central Bank of Turkey and
Takasbank in the end of 2006. These
developments will certainly solidify the
significance of CRA to the Turkish financial
system.
At the international level, as a member of
ECSDA, CRA supports harmonization efforts
such as the European Code of Conduct for
Clearing and Settlement towards a safer and
more efficient European clearing and settlement
infrastructure. As a member of the MTC 43
Mirror Committee we are actively involved in
bringing ISO TC 68 international financial
services standards to the Turkish business
infrastructure.
In cooperation with the market actors and our
participants we will continue to increase both
the variety and quality of our services. I believe
our recent efforts reflect CRA’s motivation to
accomplish that goal.
General Information Form of Securities Future Outlook
CRA was established in accordance with the
Turkish Capital Markets Law in 2001. CRA serves
as the central depository for the following
security types: equities, mutual fund certificates,
exchange traded funds and corporate debt
securities. CRA has also adapted its system to
serve for Turkish government bonds and treasury
bills for implementation of which a CMB decision
is awaited. All transactions regarding
dematerialized capital market instruments (e.g.
opening of investor accounts, pledging
securities, transfer of securities, transfer of
securities as collaterals, dematerialization
operations) are conducted by CRA participants
via Central Registry Software, CDS, which is
proprietary software developed in-house. In
November of 2005 all stock certificates including
the certificates formerly kept at Takasbank were
dematerialized. Between April 2005 and March
2006, all mutual fund certificates were
dematerialized at the CRA platform. In August
2006, after approximately 5 years, first corporate
bond in Turkish Capital Markets was issued
through CRA. Dematerialized. FCRA is currently working on the following
projects:
Type of Commercial Entity
For-profit, user-owned joint stock company. Fee
structure is subject to CMB approval.
Regulated by
CRA’s overall functions are subject to the
oversight and approval of the CMB.
Ownership
330% 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)
Memberships to International
Organizations
European Central Securities Depositories
Association (ECSDA)
International Securities Services Association
(ISSA)
CRA also manages and represents the Investor
Protection Fund. This involves, conducting all the
formalities on behalf of the Fund as per the
applicable regulatory provisions and
implementing liquidation formalities of
intermediary institutions, which are subject to
gradual liquidation per CMB resolution.
* Please refer to page 80 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. Cagatay Duruk E-mail [email protected] Website www.mkk.com.tr
PAGE 148
• Enabling shareholders to participate in the
issuers’ general assembly meetings remotely, by
using electronic signatures or by assigning a
proxy on their behalf through the CDS.
• Increasing the level of straight through
processing, especially for corporate actions, and
full synchronization of message formats with
international (ISO TC 68) standards.
• Increasing the report types available to our
members, including business intelligence reports
and investor behavior pattern analysis, while
providing analytical tools to manage them.
• Introduction of a web portal in order to
enhance transparency and information access of
market participants.
• Extension of the coverage of the Investor
Protection Fund to include all securities in
addition to shares within the context of the
ongoing alignment with the European Union
acquis.
• Dematerialization of shares of those
companies which are not traded at the stock
exchange but have the number of shareholders
exceeding a certain threshold so as to be
considered as open to public.
• Provision of depository services for warrants
and mortgage-backed securities.