Turkish Eurobonds listed and traded on the ISE now will settle at Euroclear Bank after the transactions are cleared and netted by Takasbank, the parties have announced.
Effective December 17, 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 have the ability to settle in multiple currencies with domestic and foreign counterparties, and with more advantageous deadlines than their current arrangements, according to Euroclear.
In commemorating todays 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, says Hseyin Erkan, chairman and CEO of the Istanbul Stock Exchange. 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 securitiesEuroclear Bank. We expect this initiative will increase settlement efficiency for our members and potentially increase liquidity for these securities on the Exchange.
Euroclear Bank already settles the Turkish Lira and most of the major Turkish banks have Euroclear Bank accounts, Euroclear claims.
As the central clearing and settlement institution of Turkey, we fully support the new arrangements for the settlement of locally traded Turkish Eurobonds, says Emin Server atana, president and CEO of Takasbank. 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.