Recommendation 1 Recommendation 2 Recommendation 3 Recommendation 4

Recommendation 5 Recommendation 6 Recommendation 7 Recommendation 8

Market selection

Recommendation 1

Securities Systems* have a primary responsibility to their users** and other stakeholders. They must provide effective low cost processing. Services should be priced equitably.

* Securities Systems = depositories, settlement and clearing systems
** Users = customers of the securities system, and all other parties to whom the securities system owes a duty of care

1.	Is the board that governs the depository answerable to its users?	Yes, Board of Directors of Takasbank represents users/participants (namely members of the Istanbul Stock Exchange) as well as the regulators and supervisors (namely the Istanbul Stock Exchange and the Capital Markets Board) of the Turkish capital markets. Istanbul Stock Exchange (President of the ISE is the Chairman of Takasbank) Capital Markets Board ISE Members (3 from banks, 2 from brokerage houses) President and CEO of Takasbank TOTAL 4 1 5 1 11 members member members member members
2.	Does any single organisation, or sector (e.g. brokers, custodians, Stock Exchange) have a large voting position at the board of the depository?	ISE has a larger voting position at the Board of Directors of Takasbank , with 4 members. Each board member has equal voting rights at the Board. As for the shareholder structure and voting rights at the General Meeting, the below figures are valid as of June 2001. No single shareholder can have more than 5% stake in the share capital of Takasbank, except for the ISE. Istanbul Stock Exchange ISE Members - 27 Banks ISE Members - 77 Brokerage Houses TOTAL 100% 22.6% 47.1% 30.3% 100%
3.	Is there cross subsidisation of products (e.g. international services subsidised by local ones or transaction costs subsidised by asset servicing charges)?	No. All fees and charges are the same for all classes of participants. (Only clients of the direct international settlement and custody service are charged on a different structure)
4.	What process is in place at the depository to ensure that it meets the needs of all its stakeholders (e.g. institutions, broker dealers, retail investors, issuers)?	The composition of the Board of Directors helps to achieve this: ISE, represents the rights of its own and its members(indirectly) by 4 members. President of the ISE is the Chairman of Takasbank. Members of the ISE are the users and participants of Takasbank. They are directly represented by 5 members in the Board. Capital Markets Board the sole regulator in the Turkish capital markets, represents investors and issuers indirectly, besides all other relevant regulatory and supervisory stakes related with the market. As for the, operational and executive management perspective, Takasbank's President and CEO is the member of the Board.
5.	What is the communications strategy of the depository to its stakeholders and how is this run?	New information is channelled to the participants through Takasbank proprietary system's terminals and via faxed general letters(circulars). All general letters (circulars) are also posted on Takasbank's website that can be accessed freely by the public. Takasbank annual report is prepared in Turkish and English and distributed to participants, regulators and supervisors, and to the international correspondents. Annual Report is also posted on the web site. News and events is communicated to all interested parties through the web site in its English and Turkish versions. International questionnaires answered by Takasbank (IOSCO, Association of Global Custodians, etc..) can be downloaded from the web site (in English) as well. Investors are provided with a telephone based interactive facility (Alo-Takas) to monitor their sub-account balances, that are created/maintained by the ISE members at Takasbank system. Executed corporate actions information is also available via Alo-Takas. Executed corporate actions, Takasbank Money Market's daily statistics and Alo-Takas statistics are published in the ISE daily bulletin. Meetings are held with the participants and investors.