FEAS Yearbook FEAS Yearbook 2014 | Page 109

FEDERATION OF EURO-ASIAN STOCK EXCHANGES ANNUAL REPORT JUNE 2013 TAKASBANK - ISE SETTLEMENT AND CUSTODY BANK, INC. 2013 was a year of restructuring for Turkish capital markets. Murat ULUS General Manager & Board Member 2013 was a year of restructuring for Turkish capital markets. In addition to the consolidation of Turkish Derivatives Exchange, Istanbul Gold Exchange and Istanbul Stock Exchange under the Borsa Istanbul Inc. roof which allows all financial instruments to be traded on a single exchange; post-trade services have also gained strong judicial grounds with the new legal framework which also introduced settlement finality and asset protection in compliance with the international regulations paving the way to a trustworthy environment for Turkish capital markets. Parallel with these developments in 2013, Takasbank has also renewed its IT infrastructure. After finalization of the Database Migration (a Highly Available Application Database Infrastructure Project) aiming GENERAL INFORMATION to provide high performance, access and uninterrupted IT services, Takasbank started providing services with its new IT database as of September 2013. Beginning from September 2013, Takasbank has been providing full CCP services to Takasbank Securities Lending Market and will become CCP for Borsa Istanbul derivatives market as of March 3, 2014. Takasbank will also be CCP for equity and debt securities markets of Borsa Istanbul, after migration of Borsa Istanbul and Takasbank infrastructure to new platforms which will be developed by Nasdaq OMX Group within the framework of the strategic partnership agreement between Borsa Istanbul and Nasdaq OMX signed in January 2014. Legal Status Joint stock company Takasbank is incorporated as a sector specific non- deposit taking bank with a purpose to provide clearing, settlement and custody services as well as rendering banking services. Services Provided • Central clearing and settlement services for Borsa Istanbul (BIAS) spot and derivatives markets, • Settlement bank for Turkish Electricity Market, • Operator and central counterparty (CCP) for the Securities Lending Market (SLM) • Operator of the Takasbank Money Market (TMM) for short term TRL transactions, • Operator of the Turkish Electronic Fund Distribution Platform, • Issuer CSD for the Pension Funds, • Central depository for the portfolios of the collective investment schemes incorporated in Turkey, • Global and local custody services, • Trade repository services for OTC derivatives transactions, • National numbering agency for securities issued in Turkey (ISIN, CFI), • Local operating unit for LEI allocation for local and international legal entities, • Collateral Agent for mortgage financing firms. Brief History Takasbank started as a department within the Borsa Istanbul in 1988. In 1992, it was transformed into a company and in 1996, into a bank and renamed as Takasbank. Form of Securities Dematerialized Form of Settlement and Transfers: Book-entry Settlement Period Equities: T+2 Debt Securities: T+0 Derivatives: T+1 (T+3 for physical delivery single stock futures and options) Type of Commercial Entity Private sector for-profit company Does Takasbank Act as a Central Counterparty? Takasbank is a CCP for SLM. It will be a CCP for Borsa Istanbul Futures and Options Markets as of March 3, 2014. Regulated by Capital Markets Board of Turkey Banking Regulation and Supervision Agency Central Bank of Turkey Size of Guarantee Fund (As of December 2013) BIAS Equities Market: US$ 23 million BIAS Debt Securities Market: US$ 12 million BIAS Futures and Options Market: US$ 54 million Ownership Borsa Istanbul : 52% Banks (14) : 25% Brokerage Houses (46) : 23% Board of Directors 9 Members Borsa Istanbul : 4 Banks : 2 Brokerage Houses : 2 Takasbank CEO : 1 Takasbank was globally endorsed as pre- local operating unit in order to allocate legal entity identifiers (LEIs) for both local as well as international legal entities, by the Regulatory Oversight Committee on 11 November 2013. The LEI portal (www.leiturkey.com) will be live as of February 2014. Within the context of its efforts of sharing accumulated knowledge and experience with its peers, on February 2013, Takasbank and Tunisian Depository & Clearing (TDC) signed a “Memorandum of Understanding (MoU)” aiming to establish a mutually beneficial relationship paving the way for the development of both capital markets. Memberships to International Organizations ANNA ECSDA FEAS IIF ISSA ISO TC68/SC4 OIC SWIFT Future Outlook In 2014, Takasbank intends to: • Continue its efforts to become a CCP for all organized markets and launch its CCP services for Borsa Istanbul derivatives market at the initial phase in March 2014, • Actively participate in the studies of technological infrastructure migration in clearing, settlement and risk management for all markets of Borsa Istanbul within the scope of the strategic partnership agreement signed between Borsa Istanbul and Nasdaq OMX, • Contribute to the expansion of the range of trade repository services which began on September 2011 with the OTC For-Ex derivatives transactions, to encompass all OTC derivatives products within 2014, • Provide cash clearing services to the Energy Exchange expected to be operational in 2014, • Launch depository banking services for collective investment schemes, • Provide gold physical custody and delivery services. • Launch www.leiturkey.com portal for LEI allocations * Please refer to page xxxx for the Turkey country report. CONTACT INFORMATION Contact Name Ms. Aylin Sumru E-mail [email protected] Website www.takasbank.com.tr PAGE 109