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FEDERATION OF EURO-ASIAN STOCK EXCHANGES ANNUAL REPORT APRIL 2011
CENTRAL REGISTRY AGENCY INC.
AFFILIATE MEMBER
CRA firmly intends to continue making a
difference by spearheading future projects
that extend the range of our services for
market participants.
Dr. Yakup Ergincan
CEO
The Turkish capital markets have fully overcome the
aftershocks of the global financial crisis in 2010.
Transaction volumes exceeding the pre-crisis levels,
new securities issues and new IPOs were all good
signs for our industry and our economy as a whole.
CRA is at the crossroads to enter a new era as a
central securities depository. In order to conform to
the new global industry standards and move up the
value chain we kick started new projects which will
eventually transform our business model and
increase the range and quality of our services. We
have unveiled a new logo and redesigned a new
corporate identity at the year-end to symbolize this
transformation.
One of the leading projects that reflect the new
corporate image of CRA is the “Corporate
Governance and Investor Relations” portal. The inhouse
developed portal will change the landscape of
corporate governance for the Turkish public
companies by enabling continuous communication
between investors and issuers through web and
mobile applications. Pursuant to the expected
amendments to the legislation shareholders will also
be able to vote electronically by using their digital
signatures during electronic general assembly
meetings or assign proxies through the platforms
provided.
In parallel to designing new value added services,
CRA has been working actively in other industry
projects in the framework of the “Istanbul
International Financial Centre” strategy plan. Among
these projects, the planned integration between the
Public Disclosure Platform (PDP) and the Central
Dematerialised System (CDS) of CRA will establish
the PDP as the main source of information for
corporate actions operations. We are aiming to
deliver the first fully-automated corporate actions
processing service in the world with the finalization of
other system integration projects with national
databases, government bodies and market
participant institutions.
The growth of Turkish capital markets in 2010 has
paved the way for important international
collaborations for us. CRA established its first direct
link with a foreign CSD to carry out the double listing
operations of a European company at the ISE. A
foreign intermediary institution was accepted for CRA
membership for the issuance of the first
dematerialised warrants.
CRA firmly intends to continue making a difference
by spearheading future projects that extend the
range of our services for market participants.
History and Development
CRA was established in accordance with the Article 10/A
of 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, commercial
papers, warrants and rights affixed thereon with respect
to issuers, intermediary institutions, and beneficial
owners.
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. In
October 2009 first dematerialized bank bills, and in
August 2010 first warrants were issued.
All depository operations regarding dematerialized
capital market instruments (e.g. opening of investor
accounts, corporate actions, securities issues) 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 of equities
traded at the ISE and real time DVP settlements of
equities for Securities Lending and Borrowing facility of
Takasbank through the integrated system with
Takasbank.
CRA also manages and represents the Investors
Protection Fund, 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.
Form of Securities
Dematerialized.
Legal Status
Joint stock company.
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.
Size of the Investors Protection Fund
Size of the Investors Protection Fund
US$ 127 million (approx. 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)
Federation of Euro-Asian Stock Exchange (FEAS)
Future Outlook
The main projects that CRA will continue working on in
2011 are:
• The development of the e-Governance portal which
will improve communication through different platforms
between companies, their shareholders and other
investors will increase its pace before the adoption of
the expected amendments in the Turkish Commercial
Code.
• As part of the IFC project, Takasbank and CRA have
been working on a new fund distribution platform, which
will enhance marketing of funds for fund managers. The
platform is planned to go live by the beginning of 2011.
• The Public Disclosure Platform (PDP)-Central
Dematerialised System (CDS) Integration Project will
end the “double format” problem and establish the
Public Disclosure Platform as the primary source of
information in corporate actions notifications. Also with
the finalisation of the CRA-Takasbank SWIFT Integration
Project the first step towards establishing STP in
corporate actions operations will be taken.
• A data warehouse will be established for the use of
academics, research analysts and key governmental
institutions by making electronic data available to be
analysed, modelled and presented more effectively.
• Dematerialised commodity certificates that will be
traded on commodity exchanges are planned to be
held at CRA. The legal framework and operational
infrastructure of this project will be developed jointly with
other private and governmental institutions.
* 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. Ozgur Uysal E-mail ozgur.uysal@mkk.com.tr Website www.mkk.com.tr
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