Under its articles of association, the primary purpose of Istanbul Settlement and Custody Bank Inc. (Takasbank) is to increase the competitiveness of Turkey's markets by providing clearing and custody services, financial services, and all kinds of economic activities within the framework of the relevant legislation. To achieve this purpose, the Bank may engage in all activities permitted and made possible by capital markets legislation and the Banking Law. With its "central clearing" and "banking" licenses, Takasbank provides clearing, central counterparty, and banking services to its members in the Turkish capital markets.
Takasbank is the authorized central clearing institution responsible for finalizing the cash and securities clearing of transactions in equities, debt instruments, foreign capital market instruments, derivatives, and precious metals carried out in the markets operating under Borsa Istanbul. The delivery and receipt obligations of Borsa Istanbul members arising from their buy/sell transactions, together with the payment obligations corresponding to the securities traded, are settled on an account basis through Takasbank.
Acting as a bridge between the money and capital markets by providing reliable, fast, and low-cost cash transfer services, Takasbank provides clearing services for the markets operating under Borsa Istanbul, within the framework of capital markets and Borsa Istanbul legislation, on a fully automated basis connected online to the organized markets.
Over the years, Takasbank has expanded its range of banking products with instruments that include cash and non-cash credit facilities and aim to support the finalization of clearing. In addition to the cash credit facilities it offers, through banking activities supported by cash and non-cash credit facilities such as the Takasbank Money Market (TPP), Turkey's Electronic Fund Trading Platform (TEFAS), and the Securities Lending Market (SLM), Takasbank carries out the clearing transactions of the Turkish Capital Markets by minimizing risks, providing liquidity to the market, and ensuring that clearing is finalized accurately and on time.
In this way, Takasbank not only provides efficiency in cash and securities transfer transactions but also ensures that clearing obligations are paid securely and on time on the value date.
Takasbank also provides services for defining product certificates, generating ISIN codes, and carrying out the clearing of Electronic Product Certificates (ELUS) based on cotton, wheat, barley, beans, lentils, corn, oats, olives, and paddy rice through the conditional transfer system, for a spot platform where these certificates will be traded, with the approval of the Ministry of Customs and Trade.
Within the framework of liberalization in the energy market, Takasbank has been assigned as the central settlement bank to be used by the Market Operator and market participants for operating the collateral mechanism in the Electricity Market and ensuring that payments are made accurately and on time, so that cash flow in the market is continuously maintained. Accordingly, our Bank has been providing the Electricity Market cash clearing and collateral management service since 01.12.2011.
In line with Turkey's goal of becoming a regional energy trading hub under its National Energy and Mining Policy, our Bank has been providing cash clearing and collateral management services as the Central Settlement Institution since 01/09/2018 for the Organized Wholesale Natural Gas Sales Market under Energy Markets Operating Inc., which aims to establish reference pricing in natural gas markets and reduce daily imbalance amounts in the transmission system.
One of the purposes behind Takasbank's existence is to contribute to the management of counterparty credit risk and systemic risk in the markets, to strengthen the risk management infrastructure of the capital markets, and to reduce intermediation costs in the market by developing an effective central collateral and risk management system. Using the legal basis provided by the new Capital Markets Law No. 6362, which entered into force on 30.12.2012, Takasbank has acted as the "Central Counterparty" for every buyer as the "seller" and for every seller as the "buyer" since 02.09.2013 in the Securities Lending Market (SLM) it operates itself; since 03.03.2014 in the Futures and Options Market (VIOP) operated by Borsa Istanbul Inc.; since 14.10.2016 in the Money Market (BIST MM); since 19.06.2017 in the Equity Market (BIST Equity); since 02.07.2018 in the Debt Instruments Market (BIST DIM); since 01.10.2018 in the SWAP Market; and since 19 December 2019 in the Over-the-Counter Derivatives Market, undertaking to fulfill the clearing obligations related to matched bid/offer or buy/sell orders in these markets.
On 23 March 2016, Takasbank was recognized by the Capital Markets Board (SPK) as a qualified CCP in compliance with the CPMI-IOSCO Principles for Financial Market Infrastructures. Subsequently, in August 2016, Takasbank applied to the EU regulatory authority ESMA to be recognized as a third-country CCP.
Takasbank, which also offers cross-border services to market participants, represents Turkey in global organizations through its identity as an international clearing institution. In line with the Bank's vision of becoming a preferred institution in international markets, work continues on many projects aimed at developing its technological infrastructure.
Under Action No. 17 of the Istanbul Finance Center (IFC) Strategy and Action Plan, titled "integration with international payment systems and clearing systems," Takasbank has been designated, together with the Central Bank of the Republic of Turkey (CBRT), as the "responsible institution"; within the scope of integration with international clearing systems, it is carrying out work to develop the services to be provided to non-residents in domestic and international markets, and to residents in international markets. In this context, in addition to Euroclear, the aim is to establish connections with other local and international clearing and custody institutions, to develop relationships with post-trade infrastructure institutions in order to provide clearing and custody services to non-residents both domestically and in other international markets, to build the necessary account infrastructure, and to achieve automation within the Takasbank infrastructure.
Through its existing international custody network, Takasbank provides access to foreign securities traded in more than 65 markets worldwide. Within this service, Takasbank provides custody for these capital market instruments through accounts held with international clearing and custody institutions abroad (Euroclear and Clearstream) or with global custodian institutions (Citibank).
In order to increase its effectiveness in international clearing and custody operations, Takasbank is building the account infrastructures required for post-trade services, mutually with the clearing and custody institutions of the relevant countries, within the framework of the project led by Borsa Istanbul to establish connections between Borsa Istanbul and the trading platforms of exchanges based abroad.
As the national numbering agency, Takasbank has been a member of ANNA since 1995, and allocates ISIN codes (ISO 6166) in our country for equities, government bonds, investment/exchange/pension funds, private debt instruments, all kinds of certificates, futures and options contracts, indices, commodities, Electronic Product Certificates (ELUS), and other securities and financial instruments.
As a service that supports and strengthens the SPK's oversight and supervision function, our Bank also provides valuation, control, reconciliation, and reporting services to the SPK regarding the assets of Collective Investment Institutions and Private Pension Funds.
Authorized as a portfolio custodian institution by the Capital Markets Board on 24/07/2014, our Bank provides portfolio custody services to securities investment funds, securities investment trusts, exchange-traded funds, real estate investment funds, and venture capital investment funds.
Our Bank also became an on-site R&D Center on 21 April 2017, with the approval of the Republic of Turkey Ministry of Science, Industry and Technology, within the scope of Law No. 5746.
With the "Regulation on Check Clearing Activities (Regulation)" published in the Official Gazette dated 9 June 2018 and numbered 30446, Takasbank was recognized, effective 2 July 2018, as the institution that would carry out check clearing activities. With the Takasbank Check Clearing System, Clearing and Return Distribution Transactions, and Reconciliation and Guarantee Mechanism Contribution Share Transactions began to be carried out from a single center.
On 30 December 2019, the blockchain-based transfer platform "BiGA-Digital Gold" was put into practice. A platform was created that enables the transfer of digital assets using blockchain technology. The asset to be traded on the platform is a digital value called "BiGA," produced as the equivalent of each gram of gold physically stored in Borsa Istanbul's vaults. It has become possible to digitize dematerialized gold into BiGA and to convert BiGA back into dematerialized gold. In this way, a complete structure has been established end-to-end between the physical asset and the digitized asset. Through the blockchain infrastructure developed, the transfer, reconciliation, and reporting of digital assets have been enabled. With this infrastructure, which is designed in a modular structure that also allows other valuable assets to be digitized and transferred, three main capabilities are offered for digital assets: issuance, redemption, and transfer.
Through the projects mentioned above and the comprehensive work carried out, Takasbank aims both to actively support the IFC Project and to strengthen its position in domestic and international markets, with the goal of becoming an institution that serves as a model among international clearing and custody institutions.
