Turkish delight for Euroclear - Asset Servicing Times

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Turkish delight for Euroclear
09 December 2010 Brussels
Reporter: Justin Lawson

Image: Shutterstock

Euroclear Bank, the Istanbul Stock

Exchange (ISE) and Takasbank, the central clearing and settlement

institution of Turkey, today announce an exclusive agreement whereby

Turkish Eurobonds listed and traded on the ISE will settle at Euroclear

Bank after the transactions are cleared and netted by Takasbank.

Effective 17 December, Turkish banks with accounts at Euroclear Bank will

be able to settle Turkish Eurobond trades conducted both OTC and on the

Istanbul Stock Exchange in the same accounts where they settle their

cross-border Eurobond and other securities transactions with international

counterparties. They will benefit from the ability to settle in multiple

currencies with domestic and foreign counterparties, and with more

advantageous deadlines than their current arrangements. The Turkish Lira is

already one of 53 settlement currencies offered by Euroclear Bank. Most of

the major Turkish banks have Euroclear Bank accounts.

Hüseyin Erkan, Chairman and Chief Executive Officer of the Istanbul Stock

Exchange, said: “In commemorating today’s 25th anniversary of the Istanbul

Stock Exchange, we are delighted to offer new features in broadening the

appeal of the Exchange as a venue to trade Turkish Eurobonds. We are

launching a new trade matching system, called Neg-deal, to increase

liquidity, and we are enabling our members to settle Eurobond transactions

traded locally and cross border with the leading settlement infrastructure

for these securities - Euroclear Bank. We expect this initiative will

increase settlement efficiency for our members and potentially increase

liquidity for these securities on the Exchange.”

Emin Server Çatana, President and Chief Executive Officer of Takasbank,

commented: “As the central clearing and settlement institution of Turkey,

we fully support the new arrangements for the settlement of locally traded

Turkish Eurobonds. We acknowledge the operational benefits this will

deliver to Turkish banks and look forward to working closely with Euroclear

Bank on a successful launch on 17 December.”

Yves Poullet, Chief Executive Officer of Euroclear Bank, welcomed this new

development and added: “We believe that Euroclear Bank can add value to

Turkey’s local financial community by sharing our multi-currency Eurobond

settlement and asset-servicing capabilities, and we are looking forward to

doing so. We also congratulate the Istanbul Stock Exchange on its 25-year

anniversary and wish them continued success for the future.”

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