TSPB ANNUAL REPORT 2019

24 TCMA 2019 ANNUAL REPORT INITIATIVES Turkish Financial Reporting Standard 9 (Financial Instruments Standard) Application in terms of the Funds In relation to evaluation requests from the industry on the implementation of Financial Reporting Standard - 9 “ Financial Instruments ” in terms of the funds specified in the standards, we informed and announced the decisions taken by the Capital Markets Board of Turkey (CMB) to our members in a general letter (ref number 809) on 1 February 2019. In addition, the opinions and remarks conveyed to our Association by our members regarding the compliance process of the IFRS 9 standards were shared with the CMB. Financial Action Task Force IV. Tour Country Assessment for Turkey Calls The Financial Action Task Force (FATF), of which our country has been a member since 1991, has conducted assessments within a program to ensure the effective implementation of legal, financial and operational measures in countries to establish international standards in order to take action on the Antimoney-laundering and Counter-terrorism financing. FATF officials held evaluations and meetings within all the related institutions and organizations during a two-week program to be able to conduct an evaluation report on Turkey. FATF officials were informed about the methods and the procedures in our capital markets, and about how we conduct dealing against the laundering of the crime-generated revenues and terrorism-financing, by a team of our Association officials and representatives of our members. Intermediary Services for Invoice Payments The opinions and suggestions of our Association were submitted to the Capital Markets Board (CMB) for evaluation, regarding the authorization for our member intermediary institutions to provide intermediary services for the invoice payments, under the “representative” status, by signing a representation agreement with the payment service providers. We have been notified by the CMB via written statements, dated 18 March 2019, that, intermediary institutions can possibly provide intermediary services to their clients under the status of “representative” within the scope of (Law No: 6493) on “Payment and Securities Settlement Systems, Payment Services and Electronic Money Institutions” and related ancillary legislation. Valuation of Borsa Istanbul Shares in Calculating Capital Adequacy Base of Intermediary Institutions The amendment proposal regarding the Communiqué on “The Capital and Capital Adequacy Principles of Intermediary Institutions”, which was put together to take into account the current collateral value other than the nominal value, was submitted to the Capital Markets Board (CMB) with regards to calculating the capital adequacy of the shares in Borsa Istanbul, of which our member intermediary institutions own. Effects of Collaterals Provided to Istanbul Settlement and Custody Bank Inc. (Takasbank) on Capital Adequacy and Liquidity Liability As a result of the collaterals, provided to the Istanbul Settlement and Custody Bank Inc. (Takasbank), within the Capital Markets Board (CMB) resolution (ref no; 46/1409), dated 7 October 2002, the capital adequacy and liquidity liabilities of the intermediary institutions have been negatively affected. Our members’ opinions, conveyed to our Association, were discussed at the Intermediary Institutions Professional Committee and submitted to the CMB for evaluation. Meeting on the Central Counterparty Services (MKT) and Credit Usage Facilities offered by Istanbul Settlement and Custody Bank Inc. (Takasbank) A meeting was held with the participation of senior managers of our member intermediary institutions and Takasbank representatives, in order to exchange views on administrative issues and the opportunities of Takasbank services provided to our members, where the below-mentioned issues were discussed; • MKT service, collateralization and risk management policies offered by Takasbank, • Loan opportunities provided by Takasbank to intermediary institutions.