Cash Credit Transactions

This is a cash loan targeting to provide efficiency and convenience in capital market transactions to the brokerage houses and to provide them the opportunity of getting settlement receivables at an earlier time by early coverage of settlement obligations. This loan also aims to achieve the purpose of helping capital markets gaining debt.

LETTER OF UNDERTAKING

The brokerage houses, willing to use cash credit, have to sign a Letter of Undertaking for Securities and Borrowed Securities Credits addressed to Takasbank. It is not possible that the brokerage houses use a cash credit exceeding the amount stated in the Letter of Undertaking.

LIMIT

Takasbank allocates a cash credit limit to the brokerage houses which determines the upper limit of the credit. Takasbank cash credit limits are announced to the Brokerage Houses confidentially and in written form and revised in certain intervals. Furthermore, the requests of the brokerage houses for limit increase and limit transfer are examined and concluded in the shortest time possible.

TRANSACTION LIMITS

There is no lower amount limit.
The upper amount limit is the cash credit limit allocated.

TRANSMISSION OF REQUESTS AND CREDIT UTILIZATION TIMES

The brokerage houses transmit their cash credit requests every day until 17:00 p.m. in written forms and fax instructions are deemed to be valid until the originals are received.
 
In the case that the execution of collateral transfers are requested to be carried out by Takasbank; the brokerage houses have to transmit the collateral transfer instructions regarding that day’s request to Takasbank prior to credit request and also have to make the transfer amount available in their free accounts or pools to which the transfer transaction will be made. The requests, which were met, are informed to the brokerage houses by Takasbank on the same day via fax.

MATURITY AND MATURITY DATE PAYMENT TIMES

The maturity is maximum 1 month. Even if the credit is extended, the maturity can not exceed 1 month.  The brokerage houses are obliged to pay their debts at the maturity date of the credit;

  • in cash until 14:30 p.m. the latest,
  • on account until 17:00 p.m. the latest.

PRICES AND PAYMENT TERMS ACCORDING TO CREDIT TYPES

Takasbank Cash Credit is put under utilization in 3 options:

  1. Spot
  2. With an option to cover prior to maturity
  3. Intraday

Takasbank announces different interest rates for the first 2 credit types. For each credit transaction, the interest amount calculated over the interest rate determined by Takasbank and the legal deductions over the interest plus 5% BITT (Banking Insurance and Transaction Tax) are collected together with the principal.
 
In the case that the brokerage houses deliver their cash  before 16:15 p.m., and cover their credit debts, no interest is accrued for the last day. For the credits covered after 16:15 p.m., the interest is accrued for non-business  days in case the next day coincides with a legal holiday.
 
Intraday credits have to be covered on the same day as of 16:30 p.m. the latest. %5.5 interest including BITT deduction is collected for the credits which were covered in due time. The intraday credits which are not covered until 16:30 p.m., are converted into O/N credit by applying an interest rate which is %50 higher than CBT Late Liquidity Window Borrowing Interest Rate.

PRINCIPLES OF PARTIAL CREDIT COVERAGE AND EXTENSION

The brokerage houses transmit their cash credit extension and partial coverage requests in written forms within the working hours. Fax instructions are deemed to be valid until their originals are received.

ISSUES RELATING TO COLLATERALS

Please click here for the issues relating to collaterals.

ACCOUNTING RECORDS

The Capital Markets Board  stated that the following accounting records will be used for the recognition of credit transactions.

When the brokerage houses, which will use cash credit, provide collateral to Takasbank, a debit entry is made to “916 Collaterals Provided to Takasbank for Securities Credit” and a credit entry is made to “966 Creditors from Collaterals Provided for Securities Credit”.

COVERING CREDIT DEBT AND MATURITY

The cash credit debt is covered by depositing or transferring the principal, interest and legal deductions of the relevant credit to Takasbank at the maturity date until the above mentioned hours.
Maturity arises in the following situations:

  • Despite the margin call made by Takasbank, the brokerage houses do not provide the necessary collaterals until the above mentioned hours,
  • Despite the call for collateral replacement made by Takasbank, the brokerage houses do not replace the collaterals until the above mentioned hours,
  • The brokerage houses do not fulfill their obligations at the maturity date of the credit,
  • The operations of the brokerage houses are ceased for a limited period of time or constantly,

From the above articles;
In the cases stated in (a), (b), and (c); all cash credits of the brokerage house become payable and default clauses are applied. However, in the case of (d); all cash and non-cash credit debts of the brokerage house become payable and default clauses are applied.

DEFAULT

In case of default, if any, the cash of the brokerage houses with Takasbank are blocked and these amounts are deducted from the debt. If the said amount does not cover the debt of the brokerage house, then the collaterals are liquidated and converted into cash. However, if the reason of the credits becoming payable or resulting default stems from the discontinuation of the operations of the brokerage house or cancellation of its authorizations, then the liquidation of the debt is realized by way of converting the collaterals into cash.

Within the period of default, a default interest is applied for the entire debt (the total amount of cash and non-cash credit debts which will be calculated on the day the brokerage house falls in default).

The interest rate of default is 2 times the highest interest rate announced by Takasbank for credits on the day of default. The brokerage house, which is in default, can not trade in Takasbank Money Market within the period of default. Also, the brokerage house being in default in Takasbank Money Market can not use cash credit within the period of default.