Default

Default occurs when the amounts required to be deposited to Istanbul Stock Exchange Settlement and Custody Bank (Takasbank) due to transactions executed at the Exchange or open positions or other obligations are not deposited on time or not fulfilled.

Required margin amounts to be maintained in the accounts are calculated on a daily basis. Margin amounts drop below the maintenance margin level shall be required to be brought up to the initial margin in cash terms. If the cash collateral composition is positive, margin obligations can be fulfilled by decreasing the necessary initial margin amount by closing the positons partially/completely by the end of the clearing period as well.

Except physical delivery obligations of physically delivered futures contracts, It is imperative that the clearing obligations are fulfilled by the end of the clearing period on the following Exchange day (T+1) until 14:30. If the margin calls are not fulfilled by the member until the clearing period ends, that member is deemed to be in default without any warning. In that case, the defaulting member should pay a penalty payment. Unless margin call is fulfilled by the end of the clearing period on the following Exchange day (T+1) until 14:30, open positions of the defaulting account or the defaulting member’s portfolio account can be off-set, non-cash collaterals can be liquidated, the defaulting member’s Guarantee Fund contribution can be used or other measures can be applied according to the legislation.

Clearing period for physical delivery obligations of physically delivered currency futures contracts starts on the transaction day at 17:55 and ends on T+2 day at 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. If the margin call obligations are not fulfilled by the end of the clearing period, open positions of the defaulting account or the defaulting member’s portfolio account can be off-set, non-cash collaterals can be liquidated, the defaulting member’s Guarantee Fund contribution can be used or other measures can be applied according to the legislation.