ISTANBUL SETLEMENT AND CUSTODY BANK INC. BORSA ISTANBUL INC. DEBT SECURITIES MARKET
CLEARING AND SETTLEMENT AND COLLATERAL MANAGEMENT DIRECTIVE
CHAPTER ONE
Purpose, Basis, Definitions and Abbreviations
Purpose
ARTICLE 1 - (1) The purpose of this Directive is to stipulate the principles and procedures for cash and security
settlement, default, collateral, custody, exercise of a right, transfer transactions of the capital market
instruments sale and purchase transactions conducted in Borsa Istanbul Inc. Debt Securities Market and other
transactions to which these securities are subject, and the membership therein as well as other duties assigned
to Takasbank in accordance with the legislation and/or the Board.
Basis
ARTICLE 2 - (1) This Directive has been prepared in accordance with article 77 of the Capital Markets Law No.
6362 published in the Official Gazette dated 30.12.2012 and numbered 28513, article 10 of the Law on
Payment and Security Settlement Systems, Payment Services and Electronic Money Institutions published in
the Official Gazette dated 27.06.2013 and numbered 28690, the General Regulation on the Establishment and
Operating Principles of the Central Clearing and Settlement Institutions published in the Official Gazette dated
30.05.2013 and numbered 28662, Istanbul Settlement and Custody Bank Inc. Central Clearing and Settlement
Regulation published in the Official Gazette dated 18.07.2013 and numbered 28711 and the relevant
legislation
Definitions and Abbreviations
ARTICLE 3 - (1) Terms used in this Directive shall bear the following meanings;
a) Debt Securities: Bonds, share convertible bonds, exchangeable bonds, bills, precious metal securities, and
sukukdrawn and issued in accordance with the provisions of the relevant legislation by the issuers in their
capacity as debtor as well as the capital market instruments whose nature is accepted as debt instrument by
the Board.
b) Exchange: Borsa Istanbul Inc.
c) GDDS: The government domestic debt securities.
ç) EFT: The Electronic Fund Transfer System.
d) ESTS: The Electronic Securities Transfer System.
e) General Manager: The General Manager of Istanbul Settlement and Custody Bank Inc.
f) Collective Investment Institutions: The mutual funds, private pension funds and investment trusts.
g) Board: The Capital Markets Board.
ğ) CRA: The Central Registry Agency Inc.
h) PSDS: The private sector debt securities.
ı) Market: Borsa Istanbul Inc. Debt Securities Market.
i) Procedure: Istanbul Settlement and Custody Bank Inc. Borsa Istanbul Inc. Debt Securities Market Clearing
and Settlement and Collateral Management Procedure.
j) System: Takasbank’s system.
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k) Clearing and Settlement: All of the processes that enable the transfer of cash and/or assets between the
parties within the time periods and on the conditions set forth by Takasbank, through fulfillment by the
members of the obligations arising in relation to the transactions conducted in the Market.
l) Takasbank: Istanbul Settlement and Custody Bank Inc.
m) CBRT: The Central Bank of the Republic of Turkey.
n) TETS: Takasbank Electronic Transfer System.
o) TIC: The cash accounts of the banks at the CBRT.
ö) Member: Those who are allowed to become a party to the clearing and settlement services provided by
Takasbank for the transactions conducted in the Market.
p) Investment Institution: The brokerage houses that have received authorization from the Board to engage
in investment services and activities and other capital market institutions whose establishment and operating
principles are determined by the Board to engage in investment services and activities, and the banks.
r) Directive: Istanbul Settlement and Custody Bank Inc. Borsa Istanbul Inc. Debt Securities Market Clearing and
Settlement and Collateral Management Directive.
s) Board of Directors: The Board of Directors of Takasbank.
ş) Regulation: Istanbul Settlement and Custody Bank Incorporation Central Clearing and Settlement
Regulation.
CHAPTER TWO
Guidelines for Membership
Membership
ARTICLE 4 - (1) The CBRT and the investment institutions satisfying the conditions stipulated in article 5 may
become a clearing and settlement member
(2) Institutions who become a member to the Market are also a direct clearing and settlement member
pursuant to the first paragraph of article 7 of the Regulation. Direct clearing and settlement members are
authorized to perform only the clearing and settlement transactions of themselves and/or of their customers
Conditions for membership
ARTICLE 5 - (1) The following conditions must be met to become a Clearing and Settlement Member in the
Market.
a) The trading authorization in the Debt Securities Market should not have been removed due to oppositions
to the relevant legislation,
b) The agreement whose content is determined by Takasbank should have been signed and submitted,
c) The technical infrastructure should have been established and the necessary measures to ensure its
operability should have been taken in order to conduct the transactions at Takasbank,
ç)The relevant accounts at Takasbank, CRA and the correspondent banks designated by Takasbank should have
been opened.
(2)If Takasbank acts as a central counterparty in the Debt Securities Market, the additional membership
conditions shall be stipulated by the Central Counterparty Regulation.
Membership application and its acceptance
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ARTICLE 6 - (1) The institutions that will apply for membership are required to submit their application request
addressed to the Directorate General of Takasbank together with a letter accompanied by the information
and documents affirming the fulfillment of the conditions sought for membership and send the information
and documents referred to in article 10 of the Regulation and the below listed documents by enclosing them
to this letter to Takasbank.
a) Membership application form,
b) Authorization certificate (copy),
c) Document to be received from the Exchange for their membership in the Market,
ç) Membership Agreement and Pre-Agreement Information Form,
d)Letter of Undertaking for Cash, Securities, Collateral, Conditional Virement and Electronic EFT Instruction,
e) Implementation Agreement for the Customer Instructions to be delivered to Istanbul Settlement and
Custody Bank Inc. via Fax Machine,
f) Other documents to be requested by Takasbank in accordance with the relevant legislation.
(2) In order for the membership applications to be eligible for assessment by Takasbank, the information and
documents referred to in the first paragraph of this article as well as other documents to be requested by
Takasbank should have been completed. Takasbank shall review the filed applications in terms of whether the
conditions sought in article 5 are met or not. The decision made by Takasbank on the application shall be
notified to the concerned in writing.
(3) In order to commence its operations at Takasbank, the institution whose membership application is
accepted, should;
a) deposit the membership collateral,
b) authorize the personnel who will trade on behalf of the member on Takasbank system, within 1 month from
the notification that its membership application has been found eligible. Otherwise the membership
permission granted to the relevant institution shall be cancelled.
(4) The date on which the obligations referred to in the 3rd paragraph have been fulfilled shall be deemed the
date that the institution has become a clearing and settlement member in the Market, and the member shall
become entitled to trade from that date.
Obligations of the members
ARTICLE 7 - (1) The Members are obliged to comply with the following issues:
a) Act in accordance with all rules and principles laid down by this Directive and other relevant legislation for
the Market clearing and settlement transactions,
b) Behave in accordance with the principles of honesty and good faith towards their customers and other
members,
c) Fulfill all dues, fee and commission payments and other liabilities requested by Takasbank in due time,
ç) If stipulated by Takasbank, adhere to the arrangements for taking general and special nature insurances
which would cover any financial and legal liability that might be incurred against other members and take
other measures in such nature,
d) Furnish all types of information and documents to be requested on issues deemed necessary by Takasbank
with regard to the business and transactions within the scope of the Directive, and provide all types of support
in the investigations to be carried out by the officers of Takasbank,
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e)Adapt within the prescribed time periods to the system revisions to be made by Takasbank and participate
in the tests they are invited,
f) Make notification to Takasbank within 15 days in case of transfer of shares providing direct or indirect
management control,
g) In addition to the books and records required to be kept legally, keep other records determined by
Takasbank, draw the information and documents in due form; and convey them to Takasbank in a periodic
manner or at times requested by Takasbank, and maintain such documents and records for a period of 1 year,
ğ) Inform Takasbank of any change in the head office address, board of directors and general manager at the
latest on the business day following the date on which the change has happened,
h) Fulfill other obligations under the Directives within their time periods and in a complete manner.
(2) If any Member foresees that it will be unable to either partially or wholly fulfill its obligations, it shall be
obliged to notify the situation immediately to the Board and Takasbank together with all substantiating
information and documents containing the reasons thereof. Such notification shall not constitute an
impediment for Takasbank to take the necessary measures stipulated in the Directive.
(3) The members shall be responsible for the performance of all obligations related to the transactions they
have conducted in accordance with the activities stipulated under the Directive as well as the works executed
by their employees pursuant to their duties.
(4) The members shall conduct their transactions via remote access by using the user codes and passwords
allocated to the personnel they have authorized. The responsibility arising from the transactions conducted
on the system by using the allocated password as well as from the use of the password by unauthorized people
shall belong to the member.
(5)In cases where access to the system is not possible, the transactions can be executed by Takasbank in
accordance with the written instructions to be given by the people who have authority to represent the
member.
Suspension of member activities and removal from membership
ARTICLE 8 - (1) If it is determined that the member has lost the membership conditions set forth in article 5,
Takasbank shall be entitled to ask the fulfilment of such obligations within an appropriate time period to be
allotted thereof provided it shall not exceed 3 months.
(2) In case of occurrence of risks of a significant nature which would jeopardize the secure and uninterrupted
functioning of the clearing and settlement system as a result of the loss of the membership conditions or the
non-fulfillment of the obligations, Takasbank shall be entitled to either temporarily suspend the activities of
the member entirely or on a transaction basis without designating any time or remove the member from the
membership. This state of affair shall be informed to the Board and the Exchange via the fastest means of
communication.
(3) If the trading authorization of the member is revoked by the Exchange, the market operator, the Board or
the competent authority, the member shall be removed from the clearing and settlement membership by
Takasbank.
(4) The obligations of members that have arisen from the transactions included in the scope of the Directive,
of whose activities are suspended, who are removed from the membership or wish to depart from the
membership upon their own written request, shall prevail.
(5)Takasbank shall be entitled to take all types of measures it deems necessary, including the following, to
ensure completion of the clearing and settlement transactions of the institution whose activities are
suspended or who is removed from the membership.
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a) restraining the member from trading directly on its accounts at Takasbank,
b) using the settlement receivables of the member to cover its settlement debts,
c) resorting to the collateral of the member,
ç) restoring to the member’s assets held in its free accounts at Takasbank.
Departing from the membership
ARTICLE 9 - (1) Institutions wishing to depart from the membership shall inform Takasbank of this situation in
writing. Along with the obligations of the relevant member within the scope of the Regulation;
a) copies of the documents received from the Exchange which substantiate that it has terminated its Market
membership should have been delivered to Takasbank,
b) all future-dated transactions it has conducted in the market should have been fully liquidated,
c) it should have no liability against Takasbank.
CHAPTER THREE
Clearing and Settlement Transactions
General Principles
ARTICLE 10 - (1)The members conduct their transactions by accessing to Takasbank system through the web
infrastructure.
(2) The rights and obligations of the members arising from their transactions subject to the clearing and
settlement are concluded on account by Takasbank over the designated accounts.
(3) No Takasbank guarantee exists for the finalization of the transactions on their value date and within their
time periods. Finalization of the clearing and settlement transactions within their time periods is conditional
upon the timely fulfillment by the debtor members of their obligations.
(4) Settlement of the transactions conducted by using the foreign capital market instruments and the Equity
Repo Market and the settlement of the transactions in other markets are processed in a separate manner.
(5) Settlement of the outright purchase and sale transactions conducted in the Market are performed on the
value date, whereas the settlement of the repo-reverse repo transactions are performed on the start and
expiry dates by using the relevant cash/security settlement accounts.
Markets/sub-markets to which the clearing and settlement service is provided
ARTICLE 11 - (1) The settlement transactions of the following sub-markets included in the structure of the
Market are performed by Takasbank.
a) Outright Purchases and Sales Market,
b) Repo-Reverse Repo Market,
c) Interbank Repo-Reverse Repo Market,
ç) Repo Market for Specified Securities,
d) Offering Market for Qualified Investors,
e) Equity Repo Market,
f) International Bonds Market,
g) Eurobond Negotiated Deals Platform,
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ğ) Other sub-markets to be established within the structure of the Debt Securities Market.
(2)The settlement of the foreign currency denominated transactions conducted in the sub-markets within the
structure of the Market shall be concluded by Takasbank by using a correspondent bank.
Central clearing and settlement
ARTICLE 12 - (1) Except for the exemptions introduced by the Board, the settlement of all transactions
conducted in the Market are performed by Takasbank.
Settlement dates and periods
ARTICLE 13 - (1) The settlement of TL denominated transactions conducted in the Market shall be performed
on the same day (T+0), whereas the settlement of the foreign currency denominated transactions shall be
performed one day after the transaction date(T+1). Repo-reverse repo contracts, on the other hand, shall be
settled on the start and expiry dates of the transaction. The settlement of the future-dated transactions shall
be performed on the value date.
(2)In determining the settlement periods, the business days on which Takasbank and its correspondent banks
are officially open shall be taken into account.
(3) The settlement periods to be applied on half- days shall be determined and announced to the members by
Takasbank.
(4) It is not possible for the parties to finalize the settlement transactions by fulfilling their security or cash
obligations before the settlement date.
(5) The settlement deadlines of the Market can be changed by the Board of Directors of Takasbank by
obtaining the opinion of the Exchange.
(6)Cash and security settlement obligations related to the transactions conducted in the Market shall be
fulfilled within the hours designated in the Directive. Otherwise the default provisions shall be applied.
(7) The settlement periods can be temporarily changed by Takasbank General Manager due to the problems
arising from the clearing and settlement, custody, payment or market operating systems.
Currency
ARTICLE 14 - (1) In the payment of the cash obligations arising from the clearing and settlement transactions,
the currency of the contract executed in the Market shall be used.
Finality of settlement
ARTICLE 15 - (1) The clearing and settlement instructions and transactions of the capital market instruments
and their payment transactions can neither be revoked and nor can be cancelled including the state of
temporary or permanent suspension of activities of the members and initiation of liquidation actions at the
administrative and judicial authorities.
(2) Upon any notification served to Takasbank for suspension of member activities or all types of measures
and decisions regulated by the laws, the Exchange shall be informed thereof via the fastest means of
communication to stop its Exchange transactions.
(3) The settlement transactions of all contracts executed in the Market and transmitted to the clearing ans
settlement system shall be concluded.
(4) Collateral established by the Member through its available cash and security balances at Takasbank shall
be used to terminate its obligations. To be able to take action in accordance with the decision served to
Takasbank under the second paragraph, all obligations of the Member against Takasbank should have been
completed.
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Settlement accounts
ARTICLE 16 - (1) All members wishing to trade in the markets and sub-markets listed in article 11 are obliged
to open the cash and security accounts necessary for the execution of the clearing and settlement transactions
both at Takasbank and the CRA and at the correspondent bank to be designated by Takasbank in accordance
with the nature of the transaction.
(2) Cash/security obligations due to the settlement shall be fulfilled on account.
Netting
ARTICLE 17 - (1) Except for the sub-markets referred to in the fourth paragraph of article 10, the cash amounts
of the transactions conducted in all sub-markets at the Market shall be netted off.
(2) Transactions conducted in the Outright Purchases and Sales Market, Offering Market for Qualified Investors
and Repo Market for Specified Securities and the securities to be received due to repo redemptions in all submarkets shall be netted off and the net payable or receivable shall be calculated on a security basis. Except for
the chain transactions, securities purchased by reverse repo from the Repo-Reverse Repo Market and the
Interbank Repo-Reverse Repo Market at the Exchange shall not be included in the netting process. These
securities shall be kept blocked until the redemption date in the “On-Exchange Reverse Repo Collateral Depo
Account” of the relevant member at Takasbank.
(3) The outright purchases and sales market transactions to which securities payable in foreign currency are
subject and the transactions between the repo-reverse repo markets shall not be netted off.
Delivery versus payment principle
ARTICLE 18 - (1)In the clearing and settlement transactions, the delivery versus payment principle shall be
applied. The settlement receivables of the members failing to fulfill their settlement obligations shall not be
paid.
(2) The receivables released against the partially fulfilled obligations shall also be paid partially.
Blocking, unblocking and the order of liquidation
ARTICLE 19 - (1) The settlement receivables of the members shall be blocked starting from most liquid to least
liquid against their settlement debts. Unblocking of the receivables, on the other hand, shall be made from
least liquid to most liquid.
(2)The blocking operation shall be performed starting from the security that has the nearest maturity, whereas
the unblocking operation shall be performed starting from the security that has the farthest maturity.
Special provisions for the collective investment institutions
ARTICLE 20 - (1) The responsibility for the settlement of the transactions conducted in the Exchange on behalf
of the collective investment institutions shall belong to the direct clearing and settlement member executing
the transaction.
Debt securities - clearing and settlement transactions
ARTICLE 21 - (1) The clearing and settlement of the outright purchase and sale transactions conducted in the
Market shall be performed on the value date, whereas the clearing and settlement of the repo-reverse repo
transactions shall be performed on the start and expiry dates by using the relevant cash/security settlement
accounts.
(2) The allocation of the receivables released against the debts closed during the netting process shall be made
on a pro-rata basis.
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(3) In case of lack of sufficient balance in the settlement pool, the members who closed their security and/or
cash debts shall be ranked based on the time priority principle and the balance occurred in the settlement
pool shall be allocated according to this rank.
(4) In case the receivable balance released as a result of the debt closing operation is not available in Takasbank
Pool Account, a rank of receivables shall be created for cash and each security. In creating the rank of
receivables, the hour in which the debt closing operation enabling the release of the relevant receivable was
performed in Takasbank system shall be taken into account.
Offsetting operations between the markets
ARTICLE 22 - (1) Between the markets operated by Takasbank and the markets/sub-markets to which clearing
and settlement service is provided, it is possible to offset the receivables due from a market/sub-market
against the debts arising out of other market/sub-market transactions by placing a cash and/or share offsetting
instruction.
(2) The markets/sub-markets for which an offsetting instruction can be placed shall be determined and
announced to the members by Takasbank.
CHAPTER FOUR
Default and Unjust Treatment Payment Transactions
Debt Securities Default Principles
ARTICLE 23 - (1) The members who fail to fulfill their obligations arising from the transactions conducted in
the Market within the hours designated in the Procedure shall be deemed to have been defaulted without the
need to serve any further notice.
(2) A pre-default interest shall be collected from the members who fulfill their obligations with the same day
value but after the prescribed hour, whereas a default interest shall be collected from the members who fail
to fulfill their obligations with the same day value but fulfill on the subsequent days.
(3) The default penalty shall be calculated on the basis of the calendar days between the date of default and
the date on which the obligation has been fulfilled.
(4) No pre-default interest shall be calculated in the event the CBRT fulfills its obligations related to the
transactions it has conducted in the Market until EFT closing hour on the settlement date.
Default interest
ARTICLE 24 - (1) From the member who fails to fulfill its obligation within the prescribed time periods, a default
interest calculated over the unfulfilled obligation amount for the period elapsing from the date it has defaulted
to the date it has fulfilled its obligation shall be collected together with other legal liabilities thereon.
(2) In determining the default interest of the Debt Securities Market, the opinion of the Exchange shall be
obtained.
(3)A default interest shall be charged to the defaulting member up to the amount to be calculated over the
unfulfilled obligation amount based on the coefficients designated in the Procedure by using the higher of the
weighted average overnight interest rates occurred in the repo-reverse repo markets where the government
securities are traded, in CBRT Interbank Money Market or in Takasbank Money Market formed by the
Exchange.
(4) Upper and lower limits shall be applied to the pre-default interests. These limits shall be determined by
the Board of Directors by taking account of the re-valuation rates announced by the Ministry of Finance each
year.
(5) For the obligations failed to be fulfilled within the same day, the upper limit shall not be applied.
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(6)If the obligation being defaulted is denominated in a foreign currency, TL value of the cash or security shall
be calculated by taking the foreign currency buying rate announced by the CBRT on the relevant value date as
the base. On the other hand, in case it is defaulted in any foreign currency denominated obligation, Takasbank
may also decide to calculate the default interest over the coefficients that it might determine separately for
each foreign currency.
(7) In case of reoccurrence of the default in the quarterly period, the coefficient shall be increased by 1 point
for each additional default.
Calculating the default interest
ARTICLE 25 - (1) The default interest shall be calculated in the manner stipulated in the Procedure.
Terminating the event of default
ARTICLE 26 - (1) The cash/security obligations failed to be fulfilled on the value date and the cash/security
balances kept blocked against the obligations shall be notified to the Exchange until the next business day by
the hour designated in the Procedure. An ex-officio sale/purchase transaction shall be conducted by the
Exchange by using the blocked receivables to terminate the event of default.
(2) Transactions that are conducted to terminate the default shall not be netted off with the settlement debts
of the member.
(3) The defaulting member shall be obliged to terminate its event of default at the designated time notified to
itself.
Accrual, notification and collection
ARTICLE 27 - (1)The accrued default interest shall be paid within 1 business day after the accrual date together
with other legal liabilities thereof.
(2) The notification of the accrued default interest shall be made in electronic environment through the
member screens. Upon delivery of the notification in electronic environment, the member shall be deemed
to have received the notification without requiring any further notice or advice.
(3) The default interest and other legal liabilities failed to be paid, albeit accrued, by the member within their
time periods shall be collected ex-officio by Takasbank from the free account of the member on the next
business day.
(4) The default penalties shall be transferred to the Guarantee Account until the date on which Takasbank will
provide service as the central counterparty for the debt securities.
Takasbankdefault committee
ARTICLE 28 - (1)The member to whom a default interest has been accrued may object at Takasbank based on
the reasons that the default has occurred without its own fault and due to problems arisen from the relevant
central depository system or payment system or a material mistake has been made in the calculation of the
default interest.
(2)The objections shall be made at the latest within 1 week after the default accrual date with a letter
accompanied by the documents related to the objection.
(3)The objection of the defaulting member shall be evaluated and resolved by the Default Committee
established within the structure of Takasbank in accordance with article 35 of the Regulation.
(4) If the objection made by the member is justified, the default interest shall not be applied and if it has
already been collected, the relevant amount shall be refunded to the member.
(5) If the objection is declined, the decision shall be informed to the relevant member via a letter.
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(6) The objection shall not inhibit the payment of the default interest within its time period.
Unjust Treatment Payment
ARTICLE 29 - (1) An unjust treatment payment shall be made in the manner stipulated in the Procedure to the
member to whom the delivery or payment has been failed to be made on the settlement date due to the
default of the member in the fulfillment of its commitment.
CHAPTER FIVE
Transactions Relating to Custody and Exercise of Rights
Custody Service
ARTICLE 30 - (1) Institutions that have become a Takasbank member by satisfying the membership conditions
can receive custody service.
(2)
Takasbanknezdindekiüyehesaplarındabulunanborçlanmaaraçlarıniteliğindekisermayepiyasasıaraçlarıbakiyele
riüyebazındaamaçlarınagöredetaylandırılanfarklı
depo
hesaplarındaveTakasbank
mal
varlığındanayrıolarakizlenir.
The balances of the capital market instruments qualified as debt securities that are held in the member
accounts at Takasbank shall be monitored separately from Takasbank’s assets, in different depo accounts
detailed on customer basis according to their purpose.
(3) The custody service shall be provided by Takasbank in accordance with the principles stipulated in the
Procedure.
Transactions Relating to Exercise of Rights
ARTICLE 31 - (1) The transactions relating to exercise of rights (redemption/coupon payments) of the debt
securities safe kept at Takasbank shall be performed by Takasbank.
(2) Redemption and coupon proceeds of the foreign currency payable debt securities shall be paid to the
member’s account at the correspondent bank.
(3) Redemption and coupon proceeds of the debt securities held as collateral at Takasbank shall be paid to the
extend they remain over the required collateral amount.
CHAPTERSIX
Transfer Transactions
General Principles
ARTICLE 32 - (1) The memberscan transfer the debt securities held in their custody accounts at Takasbank
between their own accounts or to another member account.
(2) Transfer transactions among the members can be executed in the system in two ways: free virement and
conditional virement. In addition, it is also possible to transfer securities from the accounts at Takasbank to
another account at the CBRT via ESTS.
(3) Execution of the transfer transactions through the user codes and passwords allocated to the personnel
authorized by the members and within the hours designated by Takasbankin the Procedure is essential.
(4) The time periods to be applicable on half-day official holidays shall be separately determined and
announced to the members by Takasbank.
(5) The time periods applicable for the transfer transactions can be changed by the approval of the General
Manager.
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(6) Principles for the transfer transactions can be differentiated by Takasbank according the type of the asset
and transaction.
CHAPTER SEVEN
Repo Reporting and Depo Transfer Transactions
Repo reporting and depo transactions
ARTICLE 33 - (1) Banks and brokerage houses are obliged to report the off-Exchange repo and reverse repo
transactions they have conducted with their customers or other brokerage houses and banks as well as those
whose term has been broken (irregular maturity) to Takasbank until the next business day by 10:45 at the
latest.
(2) The capital market instruments subject to the off-Exchange transactions must be deposited in the “Repo
Block Account” at Takasbank.
(3) In case the debt securities issued by the Undersecretariat of Treasury at abroad are made subject to the
repo and reverse repo transactions being conducted; the member is required to;
a) open an account by signing the “Supplementary Agreement for International Securities Correspondence”
within the scope of Takasbank foreign capital market instruments correspondence service, in addition to
itsexisting custody agreement with Takasbank,
b) transfer the capital market instruments subject to the transaction to the account opened in the name of
Takasbank at the correspondent bank, and
c) deposit the capital market instrument held in its Free Depo Account to the “Repo Block Account”.
(4) In line with the agreement of the brokerage house or the bank conducting the repo and the customers, the
capital market instruments subject to the repo transaction can be safe kept in the account at Takasbank of
another investment institution authorized by the CMB to provide depository service.
(5) Reporting of the capital market instruments subject to the non-Takasbank settled repo-reverse repo
transactions conducted in the Market shall be made directly to Takasbank on the start date of the transaction.
(6) Transactions conducted with the CBRT in accordance with the Open Market Operations shall not be
included into scope of the reporting.
(7) The principles and procedures for the depo conditions and the reporting shall be determined and
announced by Takasbank.
(8) In case of identification of any opposition to the principles stipulated by Takasbank, a notification shall be
made to the supervision authority with which the brokerage house or the bank is related.
CHAPTER EIGHT
Miscellaneous and Final Provisions
Clearing and Settlement Membership
TEMPORARY ARTICLE 1 - (1) Banks and brokerage houses trading in the Market as of the date that the
Procedure has entered into force shall be directly accepted as a member to Takasbank with the clearing and
settlement member status
Guarantee Account
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TEMPORARY ARTICLE 2 - (1) A guarantee account shall be established to ensure the allocation of the cash
settlement receivables in the shortest time possible in case of occurrence of any event of default in the
fulfillment of the settlement obligations.
(2) The Guarantee Account shall be comprised of the cash amounts transferred by the relevant Exchange and
the default penalties charged on the cash and security defaults.
(3) The principles for use of the Guarantee Account shall be stipulated by the protocol signed between the
Exchange and Takasbank.
(4) The balance of the Guarantee Account shall be used by Takasbank, if required, at the end of the fulfillment
period of the settlement obligation. The Guarantee Account shall enable the completion of the settlement
transactions within their time periods to the extent its account balance is sufficient. However, no guarantee
or commitment exists for the completion of the settlement transactions within their time periods.
(5) Securities corresponding to the cash amount subject to the default shall be blocked as the collateral of the
transaction.
(6) The Guarantee Account may be liquidated in the event Takasbank becomes a Central Counterparty for the
transactions conducted in the Debt Securities Market or upon resolution of the Exchange. If liquidated, it shall
be announced to the members.
Collateral
TEMPORARY ARTICLE 3 - (1) For the collateral, trading limit reserves and/or depreciation/ appreciation
reserves to be requested for the transactions conducted in the Market, the regulations of the Exchange shall
apply until the date on which Takasbank will start providing service as the Central Counterparty.
(2) Safekeeping of the collateral and reserves at Takasbank is essential.
Procedures
ARTICLE 34 - (1) Principles and procedures relating to the services included in the scope of the Directive shall
be stipulated by the Procedure. The Procedure shall enter into force by the approval of the General Manager.
Announcements
ARTICLE 35 - (1)Details and amendments related to the issues included in the scope of the Directive shall be
announced to the members through the General Letters to be published by Takasbank.
Exemptions
ARTICLE 36 - (1)The following exemptions shall be applied to the transactions to which the CBRT is a party in
the Repo-Reverse Repo Markets.
a) The cash and security balances of the CBRT to be received against the cash and/or securities it owes as a
result of the transactions it has conducted in the Market are not blocked, and they are released without
waiting for the fulfillment of the obligations. The receivables are transferred to the CBRT upon their
transfer from the cash/security settlement pool account to the CBRT accounts at Takasbank. In making
the transfers from the settlement pool account, the receivables of the CBRT are allocated with priority.
b) In the Repo-Reverse Repo Markets, securities subject to the reverse repo transactions to which the CBRT
is a party are not blocked at Takasbank. They are transferred to Takasbank’s relevant account at the CBRT
ESTS system.
c) Transactions in Takasbank system are performed by Takasbank on behalf of the CBRT.
Commissions
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ARTICLE 37 - (1) Fees related to the clearing and settlement services under the Directive shall be determined in
accordance with the principles stipulated in article 61 of the Regulation and announced to the members.
(2) Transactions conducted by the CBRT at Takasbank are exempt from any commission.
Enforcement
ARTICLE 38 - (1) The Directive shall enter into force on 3 February 2014.
Execution
ARTICLE 39 - (1) The provisions of the Directive shall be executed by the Board of Directors.
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