TSPB ANNUAL REPORT 2017

Cyber Emergency Response Team (CERT) Reports Pursuant to the provisions of the “Communiqué on the Principles and Procedures relating to Formation, Duties and Operation of Cyber Emergency Response Teams (CERT)” published by the Ministry of Transport, Maritime Affairs and Communications, CMB sector CERT was set up under the CMB along with institutional CERT and sector CERT. Activity reports prepared by our members in relation to institutional CERTs created under the relevant intermediary institutions’ organizations in conjunction with the aforementioned CERTs have been presented to the CMB. Displaying Member Codes on Equity Market Transactions Borsa İstanbul requested that a questionnaire be administered by the TCMA in relation to displaying member codes in transaction terminal queries throughout the session in Equity Market transactions, and their simultaneous delivery to data distribution companies. The outcomes of the questionnaire representing our members’ opinions and suggestions regarding the aforementioned practice were shared with Borsa İstanbul. Takasbank Loans Disbursed to Intermediary Institutions On Borsa İstanbul Equity Market, a collateral is required by Takasbank from intermediary institution members to cover potential risks stemming from their securities positions subject to a specific service within the scope of certain principles under the Central Counterparty (CCP) service. In line with the feedback and suggestions our members conveyed to our Association, it was considered that provision of different terms and conditions to different intermediary institutions would give rise to unfair competition and that it would make the activities of narrowly authorized intermediary institutions operating in the same market difficult as compared to broadly authorized intermediary institutions. Hence, our opinion and suggestions on the subject were conveyed to Takasbank. Securities Lending Market We have coordinated a working meeting with Takasbank to develop feedbacks and suggestions to drive the Securities Lending Market (SLM). We conveyed our members’ suggestions to Takasbank that SLM transactions be increased, the market be improved and its depth be increased. Draft Law on Interest-Free Finance A Draft Law on Interest-Free Finance was prepared to set out the basic rules and institutional structure to enable interest-free financial institutions and other institutions performing interest-free financial services operating in our country. The Association represented the capital markets in the related workshop held by the Banking Regulation and Supervision Agency (BRSA) in relation to the draft law on 27 & 28 September 2017 in İstanbul. Based on the exchange of opinions following the workshop, the Association’s opinions and suggestions on the draft Law were conveyed to the BRSA. Draft Law Amending the Protection of the Value of Turkish Currency Draft Law Amending the Decree No. 32 on the Protection of the Value of Turkish Currency prepared by the Undersecretariat of Treasury is intended to introduce the changes that will allow non-residents to issue foreign currency borrowing instruments and lease certificates to non-residents and to residents, whose qualifications are determined by the CMB, within the frame of the local capital market legislation. The said amendment has been communicated to ask for his support to Nurettin Canikli, Deputy Prime Ministry at the time, along with our opinion that it would help increase the financial depth in our country, encourage foreign financial institutions to come to Turkey, turn İstanbul into one of the international lease certificate markets, and thus contribute to attainment of the targets of İstanbul Financial Center project. 23 TCMA 2017 Annual Report