Turkey: New BRSA Regulation for banks – Temporary suspension of TRY DVP settlement over the Bridge
Clearstream Banking1 informs customers that further to Announcements A20067 and A20069 and due to liquidity restrictions on the Turkish Lira (TRY) related to COVID-19, transactions in TRY over the Bridge can no longer be settled under satisfactory conditions. Clearstream Banking, together with Euroclear Bank, has therefore taken the joint decision to temporarily suspend this service.
18 May 2020
and until further notice, settlement over the Bridge in TRY will be suspended.
Impact on customers
For transactions over the Bridge
As of the end of the Clearstream Banking business day of 15 May 2020, all pending Bridge settlement instructions in TRY will be rejected. For this reason, Clearstream Banking strongly recommends that customers already start to cancel their TRY pending transactions and make new settlement arrangements with a different bridge-eligible settlement currency after agreement with their counterparty.
After the change of the Clearstream Banking business day on the evening of 15 May 2020, all new settlement instructions in TRY will be rejected.
Free of payment or against payment settlement in any other unrestricted currencies eligible over the Bridge continue to operate as usual.
Domestic and internal settlement
Domestic settlement via the Clearstream Banking link to Turkey and internal settlement in TRY continue to operate as usual.
For customer’s domestic market and internal settlement Instructions, as overdraft credit lines have been removed, Clearstream Banking strongly recommends that customers keep a buffer amount in their cash account in TRY considering their securities settlement, trading in Borsa Istanbul (BIST) and cash transfer activity for the avoidance of possible risks of failed transactions. Clearstream Banking will be limited to effecting customer settlement with the available funds on customer accounts.
For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.
1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.