The clearing and settlement arms of SIX Securities Services, the Swiss-based post trade securities services provider, has signed an memorandum of understanding with Takasbank and MKK of Turkey to provide international clearing, settlement and custody services. This move is a precursor to the opening up of Turkeys financial markets to international investment and aligns with SIX Securities Services internationalization strategy.
SIX x-clear and SIX SIS both signed an MoU with Takasbank and MKK, Turkeys domestic providers for post trade services, to establish international post trade services for Turkey.
Through the agreement, SIX Securities Services will play the roles of international CCP for the Turkish market and global custodian for Takasbank. In return, Takasbank will become a full-service provider for the Turkish market via a direct CSD link with SIX SIS. While the custody account has been set up the direct settlement link with MKK, the CSD is being worked on. Additionally, interoperability between SIS x-clear and Takasbank is planned towards the end of next year.
The agreement also covers the exploration of joint business opportunities especially in the area of Islamic finance products and access to the respective markets.
The MoU, signed in April in Zurich is the result of two years of discussion and collaboration between all four institutions. First benefits of this cooperation are expected as early as 2013.
Urs Wieland, CEO SIX x-clear, commenting on the development said, We are excited by the prospect of working with the Turkish market as a whole. Now we are focusing on implementation and moving quickly to bring this comprehensive offering to our mutual customers. For SIX Securities Services, this is just the beginning of what we believe to be enormous potential in the region.
Commenting on the move, Tomas Kindler, head of Clearing Relations at SIX x-clear said: Turkey is already a large market and it already having reforms to make it more attractive for international investors, including looking at the potential ownership of the post trade market infrastructure. For us it also provides a gateway into the Middle East North Africa region.
In terms of Islamic finance this is our first exposure to this asset class.
In other developments, SIS x-clear is planning to go live with Burgundy interoperability in a weeks time and with the Getgo Recognized Investment Exchange (RIE) in August.
(JDC)