TAKASBANK IS ENTITLED “QUALIFYING” CENTRAL COUNTERPARTY

Date: 23.03.2016

Title: Takasbank’s CCP activities are in compliance with CPMI-IOSCO Financial Market Infrastructure principles and hence has been designated as a qualifying CCP (QCCP).

Summary:

As the main regulatory and supervisory authority for Financial Market Infrastructures (FMIs) in Turkish capital markets, the Capital Markets Board has recently announced that Takasbank’s CCP activities are in compliance with CPMI-IOSCO Financial Market Infrastructure Principles and it has been designated as a qualifying CCP (QCCP).

Takasbank as the central clearing house of Turkey, is central counterparty in Securities Lending Market and Borsa Istanbul Futures and Options Market. After being deemed as a QCCP by CMB, we continue our efforts in order to be recognized as a third country CCP by European Securities Market Authority (ESMA).

FROM CAPITAL MARKETS BOARD

In accordance with Capital Markets Law No. 6362; the legal infrastructure for Financial Market Infrastructures (FMIs) regulated by Capital Markets Board (“CMB”) namely; Central Counterparties, Central Clearing Institutions, Central Depository Institutions and Trade Repository Institutions have been developed. Under the framework of the same law, 77th and 78th articles regulate Central Clearing Institutions and Central Counterparties, 80th article regulates Central Depository Institutions, 81st article regulates Central Registry Institutions and 87th article regulates Trade Repository Institutions Within this scope, CMB has been authorized for the supervision of the above mentioned FMIs. 

CPMI-IOSCO which works on the payment systems under the Bank for International Settlements (BIS), has published the standards report ‘Principles for Financial Market Infrastructures’ for all FMIs including payment systems, securities settlement systems, central counterparties, central depository institutions and trade repositories in 2012.

Pursuant to the decision concluded at the Executive Board meeting Nr. 10 dated 23/03/2016 concerning surveillance activities conducted by the Board, “Principles for financial market infrastructures”, which is prepared jointly by CPMI (Committee on Payments and Market Infrastructures) and IOSCO (International Organization of Securities Commissions), has been accepted and all relevant regulations are harmonized with these principles in order to protect the stability of Turkish financial markets the rights of market participants. Therefore, ‘Istanbul Settlement and Custody Bank Incorporation Central Counterparty Regulation’ No. 28735 dated 14/08/2013, and CMB’s regulations have been prepared in compliance with the principles at the highest level. Accordingly all current and prospective FMIs must show highest degree of diligence and attention in order to be in full compliance with these principles.

Within the framework of the aforementioned national regulations and international procedures and standards, the main objective of the surveillance activities conducted by CMB regarding FMIs is to ensure secure, stable, continuous, effective and efficient functioning of the capital markets.

With the aim of achieving the aforementioned significant objective in terms of promoting stability and establishing a secure environment for the investors, main policies and activities implemented by the Board are as follows:

  • Implementing regulations compliant with the current conditions and international standards concerning the FMIs activities
  •  Conducting surveillance on  the Financial Market Infrastructures in terms of the  their compliance with the international regulations and standards
  • Ensuring that the Financial Market Infrastructures operate in accordance with the “Principles on Financial Market Infrastructures” prepared by CPMI-IOSCO
  • Conducting the FMI related activities concertedly with the institutions in charge of the financial system supervision, FMIs and their beneficiaries. In addition to the aforementioned main policies and activities set forth under the Article 128 of the Law, the Board has been vested with below listed duties and responsibilities;
    • Performing duties stipulated by the Law with the aim of obtaining anticipated results and implementing procedures as required by the aforementioned Law
    •  Adopting efficacious general verdict and special resolutions to inform the public with timely and necessary information
    •  Exchanging information and working in liaison with other financial supervisory and regulatory institutions to promote financial stability and comply with the national/international regulations
    •  Developing as well as contributing to the joint projects conducted by the international institutions, financial, economic and professional organizations

Takasbank is the central clearing house and central counterparty in particular markets in Turkey. Currently efforts are being made in order to ensure Takasbank to be recognized as a third country CCP by European Securities Market Authority (ESMA) and to render its services to the clearing members and trading platforms within the European Union. Within this scope and objectives mentioned above, Board maintains supervision of the FMIs effectively. Hence, Takasbank as the central counterparty in Turkish financial markets, is being monitored and supervised by the Board. Therefore, the Board’s opinion is such that Takasbank’s CCP activities are in compliance with CPMI-IOSCO Financial Market Infrastructure Principles and Takasbank is deemed as a qualifying Central Counterparty.