Equity and Equity-like Instruments Clearing and Settlement
The clearing and settlement of transactions executed in the Equity Market are realized on the second day following the transaction day (T+2) by netting the buy and sell transactions, in conformity with the delivery versus payment (DVP) principle and on the basis of book-entry settlement. Clearing and settlement transactions are carried out through the integrated system between Takasbank and CSD of Turkey with respect to the custody accounts of the brokerage houses held with the Central Registry Agency (CRA), since only dematerialized equities and equity-like instruments can be traded on the Equity Market. The transactions executed by brokerage houses throughout the day are netted as share certificates and cash. Within the same day, the brokerage house that performs both buy and sellof one share becomes either a debtor or a creditor with respect to the settlement, based on the net balance after netting-off the total buy amount from the total sell amount. Payments for all shares are generally netted, and if the buyer's purchase amounts exceed its sales, then the buyer will be a debtor. If the sales amounts exceed the purchases, then the brokerage house will become a creditor. Brokerage houses are required to pay their outstanding security and cash debt by 4:45 p.m. (including 4:45 p.m.) on T + 2. Brokerage houses that cannot fulfil their settlement obligations by 4:45 p.m. are deemed to be in default without any need for further notification.
Corporate Action Services for Share Certificates
Rights exercises such as capital increases and dividend distributions for share certificates in physical custody and for book-entry share certificates in the custody of collective investment institutions are executed by Takasbank.
Equity and Equity-like Instruments Transfer Services
Equity and Equity-like Instruments transfer transactions can be executed as free of payment or via Takasbank bilateral transfer system (RTGS DvP).
Free of Payment transactions are classified as physical and book-entry according to whether or not the security to be transferred has been dematerialized or not.
Physical transfers are transfers between the customer accounts of brokerage houses that are not dematerialized and still held in the custody accounts of Takasbank. Since dematerialized book-entry custody accounts are held with the CSD of Turkey transfer transactions between the brokerage houses are executed on the CSD of Turkey system. Accounts opened in the name of Mutual Funds, Mutual Trusts and Private Pension Funds are client sub-accounts under the Takasbank account on the CSD of Turkey system and the Fund/Trust custody accounts held with Takasbank are monitored in these accounts. Brokerage houses wanting to make free of payment transfers to Mutual Funds or Trusts specify Takasbank member as the counterparty and the Fund/Trust code as the related customer. Notification of a transfer amount entering into the Takasbank members' Fund/Trust accounts held with the CSD of Turkey will be made by the CSD of Turkey to Takasbank. Based on the notification, an entry is also made in the Fund account on the Takasbank system. Transfer records for transfers from Mutual Funds or Mutual Trusts to brokerage house accounts will be automatically created on a security basis, based on the information on the transaction executed at the Stock Exchange.
Takasbank bilateral Transfer (RTGS DvP) System is a system that allows brokerage houses to provide simultaneous security and cash transfer between customer accounts. It also allows confirmation between members in an electronic environment during the period between the day the stock exchange transaction has been executed and the day of the transfer. It is possible to have equity and equity-like instruments transferred on a RTGS DvP basis and cash obligations are fulfilled in Turkish lira. Cash transactions concerning Takasbank bilateral transfers are concluded on the Takasbank system whereas bilateral security transfer transactions are finalized on the CRA system.