Download - FEAS

FEDERATION OF EURO-ASIAN STOCK EXCHANGES ANNUAL REPORT APRIL 2011
TAKASBANK ISE SETTLEMENT AND CUSTODY BANK INC.
AFFILIATE MEMBER
Emin Catana
President & CEO
The main vision of Affiliates should be to
develop joint projects in the FEAS region in
constructing more harmonized, more
efficient and more reliable settlement and
custody system at the international level.
Takasbank, as the convenor of FEAS Affiliate Task
Force (TF), actively participated to the Annual
General Assembly and Working Committee meetings
of FEAS held in İstanbul on December 2010 and
opened a stand in the FEAS exhibition organized to
mark the 15th anniversary of FEAS where
publications about clearing and settlement services
of Takasbank were distributed. In these meetings,
Takasbank endeavored to increase the number of
members of the FEAS Task Force, thereby to share
views, information and provide more harmonization
on a wider platform in the FEAS region. In this
context, Takasbank completed FEAS Media Task
Force Questionnaire and submitted the answers to
FEAS Secretariat.
In April 2010, Takasbank and Abu Dhabi Securities
Exchange signed a Memorandum of Understanding
(MoU) and in October 2010, Takasbank, CRA and
Korea Securities Depository (KSD) signed a tripartite
MoU in order to establish a mutually beneficial
relationship between the signatory institutions. These
agreements aim to serve the goal of improving
performance and international competitiveness
through mutual exchange of information, know-how
and training activities.
During the course of 2010, Takasbank, in cooperation
with the Central Registry agency (CRA), completed the
infra-structure development of “Turkey Electronic Fund
Distribution Platform”. This is a platform enabling fund
issuers to execute creation and redemption
transactions of mutual fund shares among other
platform members and their customers in an electronic
environment. With this platform, which will play a very
important role in the development of Turkish fund
market, fund issuers as well as distributers can have
access to an electronic platform in which matching,
settlement and custody transactions can be executed
without counterparty risk in a reliable and transparent
environment with low costs.
“Turkey Electronic Fund Distribution Platform” was the
first project to be realized within the framework of
“Istanbul International Finance Center” action plan. I
believe that the infancy stage of the capital markets
in Turkey is coming to an end. When compared to
emerging capital markets in close geographical
proximity to Turkey, we can see that Turkey has come
a long way toward establishing a well-functioning,
transparent and safe market for domestic as well as
for international investors. I am really very proud to
witness that Turkey, which has been placed amongst
emerging market countries category for a long time,
is at last started to be accepted as a country that has
been experiencing a serious transformation process
on the way of EU membership and started working
on the project of making Istanbul an international
finance center.
In addition to this, Takasbank also actively
participated to another action plan of “Istanbul
International Finance Center”project, “Initial Public
Offering Campaign”. This campaign aimed to
establish a platform where the representatives of
participating companies can meet with capital market
institutions and evaluate the advantages of initial
public offering mechanism.
Just as competition is becoming the keynote of every
sector in today’s business world, the ability to
develop has become one of the most important
factors that enables a capital market to survive. The
economic upheavals of the recent past and the
increasingly tougher competition in every sector have
made it absolutely clear that development and
upgrading is essential if a market is to endure,
achieve stability, and grow strong in the international
arena. In this respect, the main vision of Affiliates
should be to develop joint projects with among peers
in the FEAS region in constructing more harmonized,
more efficient and more reliable settlement and
custody system at the international level.
General Information
Takasbank is incorporated as a non-deposit taking
investment bank and is authorized by the Capital
Markets Board of Turkey to function as: the Clearing
and Settlement Institution for the ISE markets, the
Clearing House for the Turkish Derivatives
Exchange, the National Numbering Agency of Turkey
and the Custodian for the Mutual Funds and
Pension Funds incorporated in Turkey.
Services Provided
• Central clearing and settlement for the organized
markets of ISE and Turkish Derivatives Exchange
(TurkDEX),
• Cash settlement and transfer facilities (domestic
and cross-border),
• Cross-border settlement and custody services,
• Real Time Gross DvP settlement (among brokers
and custodians) for equities via integration with
SWIFT system
• Takasbank Money Market,
• Securities Lending and Borrowing Market (SLB),
• Cash Credits,
• Allocation of ISIN for securities issued in Turkey
Brief History
Takasbank started as a department within the
Istanbul Stock Exchange (ISE) in 1988, and originally
dealt with the provision of settlement services for
securities traded by the members of the ISE. In
January 1992, the operations of that department
were transferred to an independent company, the
ISE Settlement and Custody Co. Inc., which was set
up under the shareholdership of the ISE and its
members. This company was then transformed into
a sector-specific bank and renamed Takasbank (ISE
Settlement and Custody Bank, Inc.) in 1996.
* Please refer to page 74 for the Turkey country report.
Form of Securities
Dematerialized
Form of Settlement and Transfers:
Book-entry
Legal Status
Joint stock company
Settlement Period
Equities: T+2
Bonds and Bills: T+0
Derivatives: T+1
Type of Commercial Entity
Private sector for-profit company
Does Takasbank Act as a Central
Counter Party?
Takasbank acts as a Central Counter Party for
TurkDEX, but does not act as a Central Counter
Party for ISE markets.
Regulated by
Capital Markets Board
Banking Regulation and Supervision Agency
Central Bank of Turkey.
Size of Guarantee Fund
(As of December 2009)
ISE Equities Market: US$ 35 million
ISE Bonds and Bills Market: US$ 42 million
Ownership
Istanbul Stock Exchange (ISE): 32.63%
Banks (19): 34.48%
Brokerage Houses (66): 32.89%
Board of Directors: 11 Members
Istanbul Stock Exchange: 4
Banks: 3
Brokerage Houses: 2
Capital Markets Board: 1
and the President and CEO of Takasbank.
Memberships to International Organizations
Association of National Numbering Agency (ANNA)
International Securities Services Association (ISSA)
Society for Worldwide Interbank Telecommunications
(SWIFT)
Association of European Central Securities
Depositories (ECSDA)
Federation of Euro-Asian Stock Exchange (FEAS)
Institute of International Finance (IIF)
Organization of Islamic Conference (OIC)
World Federation of Exchanges (WFE)
Future Outlook
In 2010, Takasbank intends to:
• Continue its efforts to become a Central
Counterparty for equities and establish a central
collateralization system
• Contribute to the development of international
standards for securities and implementing these
standards in Turkey.
•Establishment and implementation of Electronic
Trading Platform for Commodities Exchange;
•Development and integration of the collateral and
risk management software for Turkdex Options
market;
• Development of an Electronic Fund Platform to
create a larger distribution channel for market
participants;
•Development of an Options Market Clearing and
Settlement infra-structure;
•Integration of SWIFT and DvP settlement system for
Corporate Action transactions.
CONTACT INFORMATION
Contact Name Ms. Filiz Kaya E-mail international@takasbank.com.tr Website www.takasbank.com.tr
PAGE 140