By RTG DvP Settlement System the simultaneous transfer of cash and stocks subject to trading is possible through the system in Takasbank, which is operating one of the most important transfer, and payment systems of our country and transfer transactions are made without taking counterparty risk. Besides it is a system which enables the confirmation procedures between the members from the day stock exchange transaction is made until the realization of transfer transaction to take place in electronic environment.

With RTG DvP Settlement System it was especially aimed to minimize some problems and resulting risks in transfer transactions between custodian institutions in foreign transactions and institutions mediating the transaction in the Stock Exchange or corporate investors having separate custody accounts in Takasbank system and institutions trading on behalf of such investors.

1. Stocks RTG DvP Settlement Transactions 

In order to perform the RTG DvP Settlement transaction through the system first of all the transfer instruction subject of the transaction must be defined to the system. Defining the RTG DvP Settlement transaction to the system can be in the form of separate defining of instruction by both brokerage houses being party to the transaction or the instruction defined by one party to the system is confirmed the other brokerage house. The instructions are automatically matched by the system and if compulsory fields are identical the transaction will be confirmed. The information on the parties of the transaction (member/counter member), instruction type (security/cash), value date, security definition, quantity, TRY amount should be consistent.

Stocks, subscription  rights and receipts can be subject of RTG DvP Settlement and cash obligations are fulfilled as TRY.

The instructions entered with forward value will be subject to matching process on the day of entry however, they will be subject of transaction when value date is identical with current date.

The cash transactions relating to RTG DvP Settlement will be concluded in Takasbank system and the securities transactions in the CRA system. The blocked accounts opened under the account of the institutions are used so that institutions party to the transaction can fulfill their obligations. The cash debts are covered via transfer from free account to blocked account by using Takasbank screens whereas the securities debts are covered by transferring to automatic blocked account in the CRA system.

The RTG DvP Settlement transaction will be automatically realized by the system after the members being party to the transaction have covered their debts.

The securities contract debts covered by RTG DvP Settlement transactions can’t be taken back however the cash transferred to RTG DvP Settlement account can be taken back unless the transaction is realized. The instructions not realized on value date until the deadline of the RTG DvP Settlement are cancelled by the system.

RTG DvP Settlement transactions are divided into three groups being normal RTG DvP Settlement, chain transactions and settlement defined RTG DvP Settlement.

Regular RTG DvP Settlement: It enables the simultaneous execution of both securities and cash transfer transactions of members provided that both parties fulfill their obligations.

Chain Transactions: If it is desired to fulfil the securities or cash obligations to another member or members out of the receivables from another member or members, a chain transaction can be constituted by relating RTG DvP Settlement instructions regarding such transactions. Consequently the members can fulfill their obligations for the instructions where they are in debtor and creditor position over net balances and enable the completion of the transactions. The securities debtor and creditor investment accounts for transactions with an intention to constitute a chain must be identical. 

Unless the chain transaction takes place, the member constituting the chain can remove one or several of related RTG DvP Settlement matched instructions from the chain as well as add newly matched instructions.

The members can only make “Normal” RTG DvP Settlement matched instructions subject to chain transactions.

In order the chain transaction to take place all members being party to the chain have to fulfill their obligations.

Settlement defined RTG DvP Settlement: In settlement defined RTG DvP Settlement transactions, it is aimed to include the receivables of brokerage houses from the settlement system in the RTG DvP Settlement transaction and thus to eliminate the deadlock arising from double execution of DVP.

The brokerage houses can make their settlement transactions as defined while transmitting the RTG DvP Settlement instructions to Takasbank system. Because of being settlement defined it can be possible to meet their debts to settlement via RTG DvP Settlement receivables or their settlement receivables via  debts. Defining to settlement can be stated while entering instructions or it is also possible to subsequently define RTG DvP Settlement instructions to settlement, which were not defined as settlement defined previously. 

The member not having settlement debt or settlement receivable with respect to securities/cash subject of matched instruction can not define such instruction to settlement.

The securities debts of the members being party to settlement defined RTG DvP Settlement will be automatically covered by the CRA as in normal RTG DvP Settlement. When the debt of the counter member is wholly covered for the matched instruction, transactions regarding blockage release and securities separation from the settlement pool are made.

2. Bonds and Bills RTG DvP Settlement Transactions

In order to execute the RTG DvP Settlement transaction over the system, the transfer instructions subject to the transactions must be primarily defined to the system by both members. It is possible to enter a forward value instruction to the system where the transaction is realized on value day.

The instructions will be matched and netted by the system in certain intervals. Instructions complied with the matching criteria will be displayed on the approval screen, the transaction is realized after both members make the necessary transactions on the approval screen and cover their debts.

Unless the transaction is realized debt coverage transaction can be retrieved

The following options can be defined for RTG DvP Settlement transactions.

Being settlement defined: The members can relate their receivables arising from RTG DvP Settlement transactions to settlement debts resulting from the transactions in the ISE Bonds and Bills Market and thus reduce their intraday funding requirement. However, only one of the members being party to RTG DvP Settlement group can use the option of being settlement defined. The obligations of the transactions defined to settlement should be fulfilled within the periods prescribed in the ISE Communiqués. Otherwise default provisions will be applied.

Chain transaction: The brokerage houses can constitute a chain to cover a security obligation towards other member/members with a receivable from other member/members.

Netting: Upon request of both members, netting will be made on security basis for outright buy-sell and repo-reverse repo transactions taken place between two members.

Last Transaction Time: One party or both parties of the RTG DvP Settlement transaction can determine an ultimate transaction time to enable the transaction to take place until a certain point of time. In case both members have defined a last transaction time, the earlier one will be taken into consideration. RTG DvP Settlement transaction can not take place after the ultimate transaction time. 

Partial transaction: The parties can request the partial execution of RTG DvP Settlement transaction groups, which were matched. Both parties should have opted for partial transaction option so that the transaction takes place as partial 

EFT: The banks can request the transfer of the cash amount credited to their free current accounts no. 11 with our Bank or the securities credited to their free depot accounts no. 511 resulting from RTG DvP Settlement transaction to their accounts held with the Central Bank of Turkey. The members can specify such request on approval screen and enable the automatic execution of the transaction. 

Priority: In case the members cover their same kind securities or cash debts collectively, debt coverage transaction for the records waiting in the system will take place according to the priority order in entry/approval screen.