FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT APRIL 2009
CENTRAL REGISTRY AGENCY INC.
AFFILIATE MEMBER
We are committed to continuing to work on
developing new products and services.
Dr. Yakup Ergincan
CEO
2008 has been a year of financial turmoil across
global capital markets. In an adverse economic
environment, where both domestic and
international investors change their risk
conjectures Central Registry Agency Inc. (CRA)
has served well in supporting financial stability at
home by maintaining a time and cost effective
post-trade infrastructure for Turkish capital
markets. CRA’s end-user based system was an
important factor in establishing a highly efficient
and transparent settlement system that carries
lower operational risk than ever before.
This year, after the restrictions imposed on
financial and managerial rights of the investors
holding physical shares, dematerialization
process came close to be finalized for equities
with a dematerialization rate of 99.89% in market
value as of August 2008. The corresponding rate
for mutual funds was 99.39% in the same period.
We will seek to increase both the number and
types of dematerialized securities in cooperation
with our business partners and our participants in
the year ahead.
As a further step towards the implementation of
straight through processing for asset services
CRA has started a project to automate corporate
actions information flows. Following the initial
system developments the automation of
information flows between CRA and its
participants is planned to be rolled out in 2009.
This project will bring reductions in costs and
operational risks by eliminating inefficiencies due
to manual processing. In parallel, we have kick-
started our efforts to provide electronic voting
and proxy services for shareholders, establish
STP links with participants and standardize our
messaging system to ISO standards in accord to
global industry best practices. We will continue to
devote our time and effort in shaping the
necessary consensus among our participants on
the new messaging standards.
The settlement and custody industry in Europe is
in the midst of a rapid transformation which will
affect the way organizations conduct business.
CRA has been making efforts to make a major
contribution for a future integration with
international clearing and settlement
infrastructures. We are closely watching the
recent developments in harmonization of
standards and establishment of cross-border
electronic links that will ultimately enable
investors to deposit their securities at their
domestic depository and settle it cross-border at
a foreign settlement organization.
We are committed to continuing to work on
developing new products and services, with an
equal measure of commitment from our
participants, to further improve post-trade
infrastructure of the Turkish capital markets in the
course of the next year.
History And Development Form of Securities Future Outlook
CRA was established in accordance with 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 right owners. Dematerialized. All depository operations regarding dematerialized
capital market instruments (e.g. opening of investor
accounts, corporate actions, securities issues,
dematerialization operations) 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. Size of the Investors Protection
Fund In 2009 CRA will continue working on the following
projects:
• 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.
• Finalization of the project for automated
information flows to participants for corporate
actions.
• Full synchronization of message formats with
international (ISO) standards.
• Increasing the report types available to our
participants, 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.
• Dematerialization of shares of those companies
which are publicly held but not being traded at the
stock exchange.
• Finalization of the dematerialization project for the
Turkish government debt securities.
• Introduction of depository services for warrants
and asset-backed securities.
• Setting up of an investment fund distribution
platform which will serve for fund issuers,
intermediaries and investors.
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.
CRA also manages and represents the Investors
Protection Fund which is an investor protection
scheme against obligations arising from equities
transactions of intermediary institutions and banks
for which a liquidation or bankruptcy decision is
made by regulatory authorities.
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.
US$ 103 million.(as of year end)
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)
Memberships to International
Organizations
European Central Securities Depositories
Association (ECSDA)
International Securities Services Association (ISSA)
* Please refer to page 74 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
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