The legal framework on central clearing institutions, central securities depositories, central counterparties and trade repositories -all defined as capital market financial market infrastructures (FMIs)- operating in Turkish capital markets was well established by the Capital Market Law (CML) No.6362 published in 2012.
Within the context of;
- Articles 77 and 78 on central clearing institutions and central counterparties,
- Article 80 on central securities depositories,
- Article 81 on Central Registry Agency and
- Article 87 on trade repositories
of CML, Capital Markets Board of Turkey (CMB Turkey) is granted with the oversight and supervision of FMIs operating in Turkish capital markets.
As well known, CPMI and IOSCO published its "Principles for Financial Market Infrastructures" (PFMIs) including all FMIs operating in financial markets as well as payment and securities settlement systems in 2012 and the principles became globally accepted standards in most of the countries for all FMI types.
The Board of CMB Turkey, within this context, at its meeting on March 23, 2016 decided to declare the acceptance of CPMI-IOSCO PFMIs applicable to FMIs operating in Turkish capital markets and to assume the responsibilities given to itself by the PFMIs for the purposes of protecting the rights of market participants and the stability in the markets and fulfilling its oversight function towards all FMIs operating in Turkish capital markets.
Such intent can also be observed in paragraph 10 of Article 5 of "By-law on Central Counterparty Services of Istanbul Takas ve Saklama Bankası A.S." that is carefully prepared to comply with CPMI-IOSCO PFMIs and became enforceable by being published in the Turkish Official Gazette dated August 14, 2013.
By the above mentioned Board Decision; all FMIs operating in Turkish capital markets either currently or in the future are obliged to pay due care and diligence in complying with CPMI-IOSCO PFMIs and the Board assumes the responsibility to oversee such compliance.
The foundation of said policies and operations is stated within Article 128 of CML and CMB Turkey, with this Article, is assigned such duties mentioned below along with others:
- Carrying out the tasks and activities for fulfilling the duties and implementations imposed by this Law and ensuring the foreseen results,
- Taking general and special decisions in order to ensure timely, adequate and accurate public disclosure,
- Exchanging information and cooperating in any manner with other financial regulatory and supervisory institutions in order to ensure financial stability and fulfil the requirements of national or international legislations,
- Cooperating in any manner in relation to capital markets and signing bilateral or multilateral memoranda of understanding in accordance with the principles of reciprocity and the protection of professional confidentiality, with corresponding foreign institutions that are authorized to regulate and supervise capital markets, in order to exchange information, meet requests for document, inspecting the headquarters, branch offices or subsidiaries or affiliates located in Turkey of institutions performing activities in the capital markets of foreign countries as well as in the bodies from which they outsource within the framework of a written contract and to take the necessary administrative measures, share the expenditures related to the activities to be carried out in this context.
CMB Turkey, with regards to above mentioned scope and purposes, has been effectively maintaining the oversight and supervision of FMIs operating in Turkish capital markets. In this context, the oversight and supervision of Istanbul Takas ve Saklama Bankası A.S. (Takasbank), as both the central clearing institution and the central counterparty in the Turkish capital markets is also being done. After thorough examination of Takasbank's operations in the context of CPMI-IOSCO PFMIs, Takasbank is found to observe the CPMI-IOSCO PFMIs and hence can be considered as a qualified central counterparty in transactions running through Takasbank clearing facilities as a CCP.
We respectfully announce to the Public.