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FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2006
TAKASBANK ISE SETTLEMENT AND CUSTODY BANK INC.
AFFILIATE MEMBER
As one of our most important goals in the
near future, I would like to point out our
intention to become a CCP for equities as
such in derivatives.
Emin Çatana
President & CEO
There have been several developments within
Takasbank in 2005. Dematerialization of
equities was completed in November 2005 and
clients’ safekeeping accounts were transferred
from Takasbank to Central Registry Agency
(CRA). Those book-entry records were
automatically registered by CRA in line with the
dematerialization process and recorded to
beneficial owner level.
Takasbank will maintain its functions as the
clearing and settlement institution for the
Istanbul Stock Exchange facilitating the
omnibus account with the CRA for securities
settlement purposes. CRA and Takasbank
systems will be fully interlinked in real-time, so
calculated securities transfers will be reflected
General Informat›on
Takasbank is incorporated as a non-deposit
taking 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),
• Real time gross DvP “member to member”
settlement,
• Cash settlement and transfer facilities
(domestic and cross-border),
• Cross-border settlement and custody
services,
• Takasbank Money Market,
• SLB Market,
• Cash Credits,
• Allocation of ISIN for securities issued in
Turkey
Brief History
Takasbank, started as a department within the
ISE in 1988, and originally dealt with the
provision of settlement services for securities
traded by the members of the ISE. In January
1991, 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 bank and renamed Takasbank (ISE
Settlement and Custody Bank, Inc.) in 1996.
* Please refer to page 82 for the Turkey country report.
CONTACT INFORMATION
in the CRA instantaneously. Real time gross
DvP “member to member” settlement will
continue to be executed via Takasbank system.
Along with the activation of the CRA, the
organized Securities Lending Borrowing (SLB)
Market operated by Takasbank commenced
its operations in November 2005.
The establishment of SLB Market improves
the efficiency of securities settlement and,
consequently, liquidity in the market.
Furthermore, as of September 2005,
Takasbank, along with all local banks in Turkey,
started defining an International Banking
Account Number (IBAN) for all cash accounts in
its records and start accepting cash transfers
with IBAN details.
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 Commerc›al Ent›ty
Private sector for-profit company
Does Takasbank Act as a Central
Counter Party
No for the ISE markets. (However, default
procedure is applied for the settlement of the
ISE markets).
Yes for TurkDEX and Takasbank Money Market
Regulated by
Capital Markets Board
Banking Regulation and Supervision Board
Central Bank of Turkey.
S›ze of Guarantee Fund
(As Ofjune 2006)
ISE Equities Market: US$ 23.2 million
ISE Bonds and Bills Market: US$ 28 million
Ownership
ISE: 31.52%
Banks (20): 34.48%
Brokerage Houses (70): 34%
As one of our most important goals in near
future, I would like to point out our intention to
become a CCP for equities as such in
derivatives.
In the framework of FEAS efforts, a dedicated
Task Force with the leadership of Takasbank,
was set up including the participation of affiliate
members to study issues that added value to
FEAS markets.
I am pleased to say that, Takasbank as a very
active and respected participant of the
International Securities Industry, is excited and
ready to exchange views and ideas on
securities services with our peers at FEAS and
to share our experience and knowledge in
Turkey and in the international markets.
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)
Board of Directors: 11 Members
ISE: 4
Banks: 3
Brokerage Houses: 2
Capital Markets Board: 1
and the President and CEO of Takasbank.
Future Outlook
In 2006, Takasbank intends to:
• work towards participation in international
organizations;
• endeavor to comply with EU directives
regarding securities clearing and settlement
systems;
• initiate efforts to become a Central
Counterparty for equities;
• move to T+1 as settlement date for TurkDEX;
• give-up process for TurkDEX transactions;
• Fully automation of cross-border settlement
services merged with the SWIFT system;
institute pre-matching facility on T+1 for DvP
settlement (among brokers and custodians) for
equities via integration of SWIFT and DvP
transfer facility.
• complete Takasbank Money Market remote
access project by the first quarter of 2006;
• contribute to the development of international
standards for securities and implementing these
standards in Turkey;
• enhance in cross-border settlement and
custody services.
Contact Name Ms. Filiz Kaya E-mail fkaya@takasbank.com.tr Website www.takasbank.com.tr
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