- Turkish CSD and Clearstream ICSD to offer enhanced access to Turkish capital markets
- Global investors get direct access to Turkish government debt securities
- New link is part of Clearstream’s strategy to broaden market connectivity in Europe and globally
The Turkish central securities depository and trade repository, Merkezi Kayıt Kuruluşu (MKK), and the international central securities depository (ICSD) Clearstream Banking S.A. will open a direct route between the two parties enhancing the existing indirect setup. The connection will facilitate the settlement and custody of Turkish government debt securities, issued through the Central Bank of Türkiye, via an omnibus account structure. Clearstream’s local partner, TEB Securities Services, will act as account operator. Go-live will be on September 29.
Foreign investors will have broadened access to Turkish capital markets, enabling them to hold Turkish government debt securities in an omnibus account instead of segregated accounts as per the existing setup. Clearstream will continue to support Turkish equities and corporate bonds via the existing segregated account structure, in addition to the new omnibus account structure for Turkish government debt securities.
Jan Willems, head of Global Markets at Clearstream, said in a statement: “This new investment link is part of a larger strategic initiative at Clearstream to improve operational excellence through direct market access, as well as providing our clients with enhanced asset protection. This model is designed to empower our clients for more efficiency and to offer them globally the best-in-class setup and securities service quality they seek.”
Dr. Ekrem Arıkan, CEO and Board member of MKK, said in a statement: “This is a significant milestone in our ongoing efforts to integrate Türkiye’s capital markets with the global financial system. Through the link, foreign investors will benefit from simplified, secure access to our domestic market, which in turn will improve liquidity and broaden international participation in Turkish securities.”
Bahar Sirin Akkopru, head of Securities Services and TRY Cash Clearing Division at TEB in BNP Paribas’ Securities Services business in Türkiye, said in a statement: “TEB and Clearstream have had a successful partnership for the past 13 years in Türkiye which we build on through this new offering together with MKK. We are very pleased to support international investors by providing them with even easier access to the Turkish market now.”