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1. Custody Service
The stock certificates in the portfolio of Exchange Traded Funds (ETF) are followed in accounts opened as customer account with CRA under TVS member (as mentioned in Investment Fund applications). Besides, the custody accounts are also kept in Takasbank system. The securities, issued domestically by the Treasury, are directly followed in the accounts opened with Takasbank. Balance information can be accessed via Takasbank screens.
2. Primary Market Transactions
Due to trading of participation certificates in the ISE, transaction codes are determined by the ISE. ISIN code is formed by TVS for the related security and informed to CRA and the transactions in CRA system are realized with ISIN code.
The non-circulating participation shares are followed in the Founder account opened with Takasbank and the account opened with CRA under TVS member on behalf of the Founder as customer. Due to dematerialization of participation shares, ETF’s registered by the CMB will be delivered to CRA and the participation shares constituted by CRA in “founder sellable shares account” will be transferred by the founder to the account described in public offering account class detail with Takasbank under TVS member for the Founder by way of public offering transfer. For the participation shares transferred to the Founder account, an electronic message is sent from CRA system to Takasbank (TVS) system and they will be credited to the Founder account by TVS. The establishment of fund and repurchase transactions after the transfer of the shares to this account by the Founder will be followed by Takasbank and the transactions are performed being based on the messages sent to CRA.
3. Secondary Market Transactions
As the settlement of ETF’s is made in the same period as the settlement of ISE Stock Market and is subject to same operational rules, the stock market is included in the netting transactions. Where the buy-sell transactions of the brokerage house made from the same ETF participation certificate are netted within themselves, the TRY equivalent of the transactions are netted with TRY equivalents of other stock transactions.
The settlement transactions are performed with the settlement method applied in the stock market.
4. General Rules on the Establishment of Fund Share/Repurchase Transactions
The PCF file prepared by the fund authority is taken daily by the file transfer Data Processing Department , transferred to the system and projected to the screens of the brokerage houses. The establishment of fund share and repurchase transactions are performed according to the content of PCF file.
The establishment of fund share and repurchase transactions can be performed in two options being T+0 and T+2 value dated.
For T+0 and T+2 value dated transactions, the instructions can be defined to Takasbank system until the cut-off time which is determined parametrically.
4.1. Establishment of Fund Share/Repurchase Transactions
The brokerage house, willing to perform establishment of fund share and repurchase transactions, enters an instruction by using Takasbank screens.
The establishment of fund share and repurchase transactions with T+0 value date can be performed by all brokerage houses via authorized participants. In case the investor wants to perform an establishment of fund share and repurchase transaction via another brokerage house other than the authorized participant, then the brokerage house and if it applies to the authorized participant, then the authorized participant enters the instruction to Takasbank system.
The foresaid instruction, is defined to the system by two authorized users being entry and approval. In the entry of the instruction, the brokerage house is requested to enter the customer account number where the conversion transaction is going to be realized and the number of shares subject of the transaction and the shares and cash are listed according to the fund composition existing in the system. If it is the brokerage house which defines the instruction to the system, upon approval of the instruction by the authorized participant, the cash and stocks in the free current account of the brokerage house for fund establishment transaction and the participation shares for fund repurchase transactions will be blocked and the transaction is submitted to the Founder’s approval. The Founder rejects/accepts the request. Upon the confirmation of Founder, the blocked stocks and cash will be transferred to ETF custody account in fund establishment transaction and the participation shares will be transferred to customer account being party of the transaction simultaneously.
In T+2 value dated transactions, no blockage is made on T day and after Founder’s approval the transaction is kept in the system to be realized on T+2 day. On T+2 day the parties fulfill their obligations required for the transaction and facilitate the transaction. |
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