27 / 64
23
TCMA
2016
Annual Report
Feedback on Price Steps Under One Kurush Practice in
Equity Market Transactions
Members of the Association’s Intermediary Institutions
Professional Committee and İstanbul Clearing, Settlement
and Custody Bank Inc. (Takasbank) authorities collaborated
to resolve the potential uncertainties that may result in
rounding operations, in the event that the transition is
made to display of prices with three digits in kurush for
indicating price steps under one kurush in Borsa İstanbul
Equity Market within the frame of the BISTECH system.
Upon assessment of technical and financial issues that
may arise in practice, key problems and doubts were
communicated to Borsa İstanbul and the CMB.
Borsa İstanbul Memberships of Narrowly Authorized
Intermediary Institutions
The Association made attempts before the CMB and
Borsa İstanbul to provide that annual membership
fees should not be charged to narrowly authorized
intermediary associations on account of their Borsa
İstanbul memberships. Taking our Association’s feedback
and suggestions into consideration, the CMB decided
that annual membership fees will be not charged to
narrowly authorized intermediary institutions and their
memberships with Borsa İstanbul be sustained.
Revised Equity Market Exchange Fee Implementation
The Association’s opinion formed on the basis of concrete
data about the impact of the increase of basic exchange fee
applied as 0.20 bps in equity market transactions of Borsa
İstanbul to 0.25 bps upon the industry and upon careful
consideration of international implementations has been
submitted to the CMB for its consideration.
Since it is believed that the new fee tariff that came into
force starting with the transactions on 2 January 2017
would lead to adversities for investors and intermediary
institutions, the opinion that the increase in exchange fee
should be reconsidered has been communicated to Borsa
İstanbul.
Suitability Test
The sector’s opinions have been conveyed to the CMB in
order to help resolve the issues experienced in practice
with respect to completion of suitability tests and
hesitancies in service delivery to customers. The CMB’s
statements about the subject have been communicated to
our members with the General Letter no. 763.
Effect of Daylight Saving Time on Leveraged Trading
Transactions
Suggestions for the resolution of problems that may
result from the new time difference between the overseas
markets and our country stemming from the daylight
saving time practice that has become permanent in Turkey
have been presented to the CMB upon seeking the opinion
of İstanbul Clearing, Settlement and Custody Bank Inc.
(Takasbank) whether an operational hardship would result
in collateralization reporting to be made thereto.
Revised Clearing Fees Due to Central Counterparty
Service
Since İstanbul Clearing, Settlement and Custody Bank
Inc. (Takasbank) has become a central counterparty in
transactions to be executed in Borsa İstanbul Equity
Market, clearing fees are planned to be revised. Underlining
the issues that arose for investors and intermediary
institutions as a result of recently increased intermediation
costs that reflect negatively on our sector, our opinion
that clearing fee rise should not be effected has been
communicated to the CMB.
Taxation Problems in our Capital Market
During the Association’s General Meeting convened on
7 December 2016, opinions and suggestions about tax
arrangements believed to contribute to the international
competitive strength of our country’s capital market and
intermediation sector have been communicated to the CMB
within the frame of the instructions of Dr. Vahdettin Ertaş,
CMB Chairman.
Reconciliation with Clients relating to Custody Accounts
We have discussed with our members the problems and
hesitations regarding the obligation to make written or
electronic reconciliation at least once a calendar year
for capital market instruments and cash of clients by
and between clients receiving custody service and the
investment firms authorized to act as custodians. The
resulting opinions and suggestions have been conveyed to
the CMB.