Market Link Guide - Turkey
CSD link as defined under CSDRa
Type of link
a. CSD Regulation (EU) No 909/2014 art. 2 (29)
The Merkezi Kayıt Kuruluşu (MKK)a is also referred to as the Central Registry Agency (CRA). The MKK uses the brand name Merkezi Kayıt Istanbul
Türk Ekonomi Bankası A.Ş. (TEB)
Country of incorporation
Investor accounts b
Accounts are in the name of beneficial owners
Accounts are in the name of beneficial owners
a. The MKK is the Turkish investor CSD for Government debt securities and the issuer CSD for other Turkish securities. Refer to Market infrastructure – Turkey for further details.
b. Omnibus account structure is currently not recognised under Turkish law. While certain exceptions may apply to foreign CSDs and custodians, these exceptions have not been fully implemented yet.
|Settlement in T2S||No|
|Settlement free of payment||Yes||Refer to Settlement services – Turkey (Specific settlement rules / settlement restrictions) for important market-specific requirements. Internal transfer securities free (type 31) instructions, that is, deliveries without matching receipts are not allowed for Turkish securities.|
|Settlement against payment||Yes||Refer to Settlement services – Turkey (Specific settlement rules / settlement restrictions) for important market-specific requirements.|
|Settlement against payment in central bank money account of CBL customers||No||CBL holds a cash account at TEB. Against payment settlement of external transactions takes place on the cash account of TEB at the local central bank. Only CSD-member banks can have an account at the local central bank.|
|Partial settlement||Yes||Partial settlement is exceptional and subject to bilateral agreement.|
|Settlement penalty fees||Yes||Refer to Settlement process - Turkey.|
|Hold and release||Yes||Instructions that have been "locked in" for settlement or provisioned and released to the domestic market can no longer be held back from settlement.|
|Registered securities||Yes||Issuers can choose to issue securities in either bearer or in registered form.|
|Transaction management||No||The CSD (MKK) does not process market claims. However, TEB processes compensations manually based on customer requests. The CSD (MKK) does not process transformations.|
|Multi Market Securities||Yes||AT0000818802 (SHS DO AND CO AG ORD BR), listed at the Wiener Börse and at the Borsa Istanbul.|
|Lending and borrowing||No|
|Investment Funds||Yes||ETFs, investment trusts (closed-end investment funds), hedge funds, money market funds only.|
Investment funds admitted to Takasbank’s TEFAS platform (Türkiye Elektronik Fon Alım Satım Platformu) are not CBL-eligible.
|Liquidity Hub Connect||No|
|Sale and purchase of rights||No|
|Repo services||Yes||Debt securities only. Refer to the CmaX Product Guide.|
|Market restrictions||Yes||Refer to Investment Regulation - Turkey.|
|Miscellaneous||Yes||Turkish securities are held on segregated MKK accounts in the name of the respective beneficial owner. Investors other than Turkish resident individuals must possess or obtain a Turkish tax ID before settling transactions in Turkish securities. Turkish individual investors must communicate their Turkish national ID number before settling transactions through CBL.|
|Link eligible for use in Eurosystem credit operations||No|
|Bilateral cancellation||No||Transactions can be unilaterally cancelled before settlement.|
In general, trades are first pre-matched and then settled when obligations are fulfilled by both parties. The settlement is irreversible when completed and cannot be unwound.
The below section is based on the legal opinion obtained by CBL that was issued on 5 September 2017. The information is provided for guidance only and should not be considered in isolation or as constituting a complete or definitive legal advice on any specific matter.
No insolvency proceedings against the custodian
Custodian’s liability for negligence
Under the agreement the custodian is not immune from legal actions by CBL.
Book-entry regime with in rem rights
Recognition of nominee concept
Nominee concept not explicitly recognised under local law, though CBL will be recognised as account holder of the account held in its name but on behalf of its underlying customers (akin to a nominee) provided that the custodian opens as many accounts as there are underlying investors.
No right of retention to the custodian
Segregation of assets at the custodian
No right of use
No upper-tier attachments
No specific rule in respect of upper tier attachments.
Insolvency of the custodian with no impact on CBL's rights
Confirmed for securities.
Shortfall pro-rated among holders
No specific rule in respect of shortfall.
Settlement finality in case of insolvency