The Capital Markets Board (“CMB”) published the Communiqué Amending the Communiqué on the Principles of Investment Services, Activities and Ancillary Services No. III-37.1 in the Official Gazette dated October 20, 2017 and No. 30216. The changes will be effective as of December 25, 2017.
- The communiqué defines “Gross Asset” as a client’s remaining balance, calculated according to collaterals deposited and withdrawn by the client and the profit/loss of the closed positions in relation to the leveraged transactions. The term “Net Asset” is defined as a client’s asset calculated according to collaterals deposited and withdrawn by clients and to the profit/loss amounts of both open and closed positions in relation to leveraged transactions.
- The Istanbul Settlement and Custody Bank (“Takasbank”) will be the custodian for the collaterals obtained by the intermediary institutions from their clients.
- The amount of collateral received corresponding to the net assets by the time of reporting will be transferred to the sub-account opened in the name of the client with Takasbank, and the portion the net assets exceeding the gross assets will be transferred to the leveraged transactions collateral reserves account within Takasbank. These transfers will be executed daily and completed by the next business day, at the latest.
- Intermediary institutions will ensure that their clients can monitor their gross assets and net assets that are maintained at Takasbank and this information will be updated on a daily basis.
- The amount held in the leveraged transactions collateral reserves account cannot be less than 50% of the difference between the total gross assets and total net assets of all clients. Intermediary institutions can cover the deficient amount during updating process or withdraw the exceeding collateral.
The amendments clarified that the records will be retained within Takasbank, and that reporting transactions and account transfers must be executed on a daily basis. In gathering investment records under a single institution, customers can easily obtain information about their transactions.