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Basis
Takasbank has been assigned as the Clearing House for Turkish Derivatives Exchange (TURKDEX) with the resolution taken in the meeting of Capital Markets Board dated 10.12.2004 and number 48/1602. The settlement of the contracts traded in TURKDEX is executed within the framework of the provisions in the General Regulation, TURKDEX Regulation and related legislation, Communiqué on the General Principles on Clearing and Default of TURKDEX and Takasbank General letters, numbered 808 and 880.
Clearing
Mark to Market Process is performed daily on related account basis. The losses that can arise due to the transactions in TURKDEX are automatically deducted on the same day (T+0) from the cash collaterals in the related accounts. If the cash margin is insufficient or total margin falls below the maintenance margin as a result of mark to market process or asset valuation, margin call announcement shall be placed electronically. Margin call obligations can be fulfilled either in cash or by offsetting partial/entire positions. After charging the loss to the account, even if the remaining total margin, where the cash collateral is below “0”, is above maintenance collateral, margin call will be announced and the cash collateral amount of the related account will be completed to at least “0”. The principles regarding margin call and margin process are determined in the Exchange Communiqué numbered 2005/5.
The profits are transferred into the accounts on T+1 day. The accounts with profits, having a margin obligation are blocked in the amount equal to the related margin call amount and profit receivables are not paid until the obligation is fulfilled completely. The member is also not allowed to withdraw collateral from the sub-account that is subject to the margin call.
The member not fulfilling its margin call obligation of the related account until 14:30 on T+1 day is deemed in default without requiring any further notification. The defaulting member will be subject to default interest equaling to % 100 more of the highest interest rate of overnight weighted average interest rates applicable in the ISE Repo-Reverse Repo Market or CBRT Interbank Money Market from the time 14:30 on T+1 day until the EFT closing. For the default amounts paid on subsequent days after EFT closing on T+1 day, default interest equaling to % 300 more of the highest interest rate of overnight weighted average interest rates applicable in the ISE Repo-Reverse Repo Market or CBRT Interbank Money Market is applied.
TURKDEX Clearing House Daily Workflow
| PROCESS |
HOURS |
| Opening of Session |
9:15 am |
| Settlement Deadline (Start Time for Default) |
2:30 pm |
| Profit Distribution Deadline |
2:35 pm |
| Deadline for Withdrawing of Cash Collateral |
3:40 pm |
| Interest Accumulation Transaction |
3:40 pm |
| Deadline for Withdrawing/Depositing Cash Collateral |
5:20 pm |
| End of Session |
5:35 pm |
| Announcement of Settlement Price and Margin Calls |
5:45 pm |
| Deadline for Account Opening |
5:45 pm |
| Mark to Market Process |
5:50 pm+ |
| Deadline for Notification of Global Account Position |
9:00 pm |
| TDCS End-of-day Transactions |
9:00 pm+ |
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