Takasbank of Turkey
Brief Introduction
The Memorandum of Understanding between Central Securities Depository of Iran and Takasbank of Turkey was signed by the CEO of CSDI Alireza Haji Norouzi and the CEO of TakasBank of Turkey Mr. Çatana in September 2008.
Objectives
- Exchange of knowledge and information on rules and regulations, system upgrades
- Knowledge sharing on CSD processes, procedures, and executive solutions to advance subjects raised in the MoU.
- Organizing joint seminars and training courses
An Introduction to Takasbank
With the original title of Istanbul Settlement and Custody Bank Inc., Takasbank, according to its Articles of Association is supposed to provide clearing, settlement and custody services within the framework of the Turkish capital market and related exchange regulations as well as rendering investment banking services within the scope of the Banking Law and other banking regulations.
Through its “central counterparty” and “banking” licenses, Takasbank also provides clearing, settlement and custody, central counterparty and banking services to its members in Turkish capital markets.
Takasbank is authorized to provide cash and securities settlement transactions as the central clearing and settlement institution to Borsa Istanbul equities, debt securities, foreign securities, derivatives and precious metals markets. Securities delivery/receipt, as well as cash obligations of Borsa Istanbul members arising from the buy-sell transactions in the related markets, are executed via Takasbank.
Being a bridge between money and capital markets by providing reliable and robust cash transfer services with low costs, Takasbank renders clearing and settlement services, within the framework of capital market and Borsa Istanbul legislation, for Borsa Istanbul markets in a full automation environment via online connection with the organized markets.
Throughout the years, Takasbank enlarged its product range with products comprising of both cash and non-cash mechanisms with the aim to finalize the settlement. Besides providing cash credits, Takasbank executes capital market clearing and settlement transactions by minimizing risk, providing liquidity and targeting the timely and accurate finalization of settlement through its banking activities supported by cash and non-cash credit mechanisms such as Takasbank Money Market (TMM), Turkey Electronic Fund Trading Platform (TEFAS) and Securities Lending Market.
Being a bridge between money and capital markets by providing reliable and robust cash transfer services with low costs, Takasbank renders clearing and settlement services, within the framework of capital market and Borsa Istanbul legislation, for Borsa Istanbul markets in full automation environment via on-line connection with the organized markets.
Takasbank not only provides effectiveness in both cash and securities transfer transactions, but also ensures the timely and secure fulfillment of securities obligations at the value date.
Furthermore Takasbank, by the approval of the Ministry of Customs and Trade, provides following services for the spot platform where electronic commodity certificates based on cotton, wheat, barley, bean, lentil, corn, oat bran, olive, rough rice are traded: commodity certificate registration in Takasbank system, ISIN allocation and execution of settlement transactions through Takasbank RTGS DVP systems.
Takasbank has also been providing cash settlement and collateral management services to Turkey's energy market. Thanks to privatization and electricity market reforms, after launch of the Electricity Market, Takasbank has been authorized as the Central Settlement Bank for the Market since December 1, 2011. Key benefits of the central cash clearing and collateral management service provided by Takasbank can be summarized as execution of payments accurately, in a timely manner and reducing operational risk.
Besides, another important mission of Takasbank is to contribute to the strengthening of capital market risk infrastructure and minimizing intermediation costs in the market by developing an efficient central collateral and risk management system.
Providing cross-border services to market participants, Takasbank represents Turkey in international organizations through the international clearing and settlement institution identity it possesses. In line with the vision to be a preferred institution in international markets, Takasbank continues its studies for many projects aiming to develop its technological infrastructure.
Assigned as the responsible institution with the Central Bank of the Republic of Turkey for the 17th numbered action plan of Istanbul International Finance Center (IIFC) strategy “integration with international payment and clearing and settlement systems”, Takasbank continues its studies to develop services provided to foreign residents in both local and international markets and to local residents in international markets within the framework of integration with international clearing and settlement systems.
In this context, cooperation with other international settlement and custody institutions in addition to Euroclear Bank, building business relationships with other post-trade institutions with an aim to provide both local and international settlement and custody services to foreign residents, implementation of necessary account infrastructure and enhancement of automation in Takasbank infrastructure comes among Takasbank strategic objectives.
Takasbank provides custody service for the capital market instruments through its accounts held at international central securities depositories-ICSDs (Euroclear ve Clearstream) and global custodians (Citibank). Thus, it provides to access to more than 65 markets around world-wide.
Takasbank also provides valuation, control, commitment and reporting to CMB in relation to the assets of; Stock and Shares Investment Trusts, Investment Funds and Individual Retirement Funds. This is the service of controlling of the Collective Investment Institutions (investment funds, retirement funds, investment trusts) with the criteria, which have been specified by CMB and reporting of the results to CMB.
The bank provides portfolio custody services to the security-based mutual funds, mutual trusts, exchange traded funds, real estate mutual funds and venture capital mutual funds since July 24, 2014. Portfolio custody service is the safekeeping and recording of financial assets owned by the collective investment institutions, the verification of the ownership, and monitoring of other assets and the corresponding recordkeeping, the execution of transactions related to the movement of assets and cash and the fulfillment of other duties as stated in the Communiqué.
Within the framework of Borsa Istanbul connectivity project with trade platforms of international exchanges, Takasbank is mutually developing the necessary account infrastructure with the settlement and custody institutions of the related countries.
Also, on December 30, 2019, Blockchain Based Transfer Platform was launched with “BİGA- Digital Gold”. The Platform has been created that allows digital assets to be transferred using blockchain technology.
The asset to be traded on the platform is the digital value which is called “BiGA” that is produced as the equivalent of each 1 gram of gold, the equivalent of which is physically stored in Borsa İstanbul’s safes.
It is possible to digitalize the dematerialized gold and convert them to BiGA and also, it is possible to BiGA can convert into dematerialized gold. Through this system, an entire structure was established between end-to-end physical asset and the dematerialized asset. With this blockchain infrastructure, transfer, settlement and reporting of digital assets were provided. With this infrastructure, 3 main capabilities are submitted such as issuing, redemption and transfer, designed in a modular structure that allows the transfer of other valuable assets by digitalizing.
Joint Projects
- CSDI, Takasbank representatives participate in the Organization of Islamic Cooperation Member States' Stock Exchanges Forum hosted by Turkey.
- Establishment of a special working group aimed at offering shares of Iranian companies on the Istanbul Stock Exchange.
A working group consisting of representatives of CSDI, Takas Bank, Tehran Stock Exchange, Istanbul Stock Exchange and the Turkish Central Registration Agency (MKK) was established in August 2017 to prepare the groundwork for listing and pricing the shares of Iranian companies on the Istanbul Stock Exchange. In this working group, issues related to securities trading, disclosure of information, post-trade procedures, depository of shares in aggregated accounts, corporate actions, legal issues, contractual arrangements, etc. were discussed.
