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The “Securities L/B Market”, is operated within the framework of our Bank due to the authority given by the 4. article of the Communiqué No: 65 Series: V of the Capital Markets Board. This market is generally defined as an organized market where the demands of the brokerage houses which want to borrow securities for a certain period by providing collateral in types and amounts determined by Takasbank and approved by CMB meet the offers of the brokerage houses which want to lend securities and take them back at the end of the maturity in fungible form in order to accumulate interest on their idle portfolios.
Our Bank is in a position of an institution in the Securities L/B Market which mediates the conclusion of settlement within the framework of received collaterals.
The demands and offers of the brokerage houses are met by predicating on time and price priority in a transparent environment and demands and offers and realized transactions are broadcasted online through data distribution screens.
The detailed information regarding the Securities L/B Market provided in outline below can be found in our web site under the heading “Markets”.
Market Participants, Letter of Undertaking and Representatives
The brokerage houses except those which are banned by CMB from making the lending/borrowing transactions covered by the Communiqué can trade in the market.
The brokerage houses willing to trade in the market have to sign the “Letter of Undertaking for Securities L/B Market” of which the form and context has been determined by the Bank. Also the brokerage houses have to inform the Bank on their representatives for trading.
Securities Subject to Trading and Maturities
Although there are 13 different and standard maturity options the longest being 1 year in the Securities L/B Market where all equities traded in the ISE-National Market are subject to trading, the transactions are realized with the same day value.
Sessions
2 consecutive sessions are held in the market every day being between 09:30-12:00 and 13:30-16:15.
Orders and Matching
The orders are transmitted to the market via Takasbank terminals located in the offices of brokerage houses where the brokerage house itself can give an order on behalf of the customers and funds and investment trusts managed by it and the collateral/risk control is performed on customer (on behalf of which the order has been given), portfolio account or fund and investment trust basis managed by it.
The parties realizing a transaction in the Securities L/B Market are not provided the brokerage house or customer information which is the counter party of the transaction and during matching both parties can be the same brokerage house provided that their customers are different.
Order Types
There are 4 different order types; “Orders within a Session” where it is valid for the session it was entered however its unrealized part is automatically cancelled by the system at the end of the session for which it was entered, “Daily Orders” which can only be entered in the first session and cannot be deleted at the end of the first session and its unrealized part is automatically cancelled at the end of the second session, “Fill or Kill Orders” which is an order where all of it is not written as liability at the time of entry when there is no trading and in case of partial trading, its unrealized part is not written as liability and automatically canceled by the system and “Orders that are cancelled when they cannot ce filled wholly ” which is automatically canceled by the system when it does not fully match at the time of entry.
Collaterals
In the Securities L/B Market where cash, treasury bill, government bond, stocks , investment fund, exchange traded fund, gold and letter of guarantee are accepted as collateral, there is no limit allocation for the brokerage houses and those willing to borrow are given limits insofar their collaterals suffice.
Rights Arising From the Security Subject to Borrowing/Lending
As the bonus issue rights, subscription rights and dividend distribution rights of the security subject to borrowing/lending originally belong to the lender, arrangements were made so that the lender is not deprived from the said rights.
Covering the Borrowed Securities
The deadline for covering the borrowed securities in the market which have fallen due is 16:30. The borrowed securities can be covered within the day partially or wholly from our Bank’s screens located in the offices of the brokerage house.
Commissions
Transaction commissions are calculated over the rates determined by the parties during matching and collected from the account of the brokerage house at a certain point of time on maturity date and transferred to the account of the lending brokerage house whereas Takasbank commission is collected from both borrower and lender on the transaction day over the realized quantity of the order.
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