Istanbul Stock Exchange Settlement and Custody Bank Inc. (Takasbank) has been appointed as Clearing House for TurkDex.
Except physical delivery obligations of physically delivered futures contracts,the settlement/clearing of the transactions is executed on the cash settlement basis. Members should fulfil their margin requirements until 14:30 on the following Exchange day (T+1, 14:30).
Takasbank acts as the central counter party against each contracting party of the transactions in the clearing process. Takasbank guarantees the settlement of the transactions but the guarantee is limited to the collateral taken from the members for trade and for the guarantee fund.
The transactions are executed on account basis at TurkDex which means that the collaterals are also collected on account basis. But although the collaterals are collected on account basis, clearing members are responsible for the margin calls.
Each Exchange day after the announcement of daily settlement prices of contracts and profit/loss amounts by TurkDex, Takasbank starts “mark to market” operations on account basis. After the daily “mark to market” operations if the collateral level drops below the Maintenance Margin level on account basis margin call is issued by Takasbank. If the collateral level is above the Maintenance Margin in an account but cash margin amount is negative after the losses are cut from the cash collateral, the relevant member shall be required to pay for the negative margin balance (bring the cash margin balance up to "0") by a margin call. While daily losses are cut from the cash collateral on the same day (T+0), profits are added to the cash collateral on the following Exchange day (T+1).
In order to monitor clearing members’ open positions and required collaterals, relevant accounts shall be opened at Takasbank. After the end of the session each Exchange day, profit/loss amounts of the accounts are determined by using end of day settlement prices declared at 17:55 and all accounts are marked to market using the end of day settlement prices by Takasbank. After mark-to-market process, margin call amounts are announced for relevant accounts. Members are required to fulfill their margin call obligations on the following Exchange day (T+1) by 14:30.
The general clearing principles are applied in the fulfillment process of the clearing obligations arising from cash settlement of the physically delivered futures contracts till the last trading day (including the last trading day). Physical delivery obligations of physically delivered currency futures contracts are obliged to be fulfilled on T+2 day by 16:30. Cash and physical delivery obligations of physically delivered live cattle futures contracts are obliged to be fulfilled on T+1 day by 16:30 and on delivery day by 14:00 respectively.