Recommendation 1 Recommendation 2 Recommendation 3 Recommendation 4

Recommendation 5 Recommendation 6 Recommendation 7 Recommendation 8

Market selection

Recommendation 3

The industry worldwide must satisfy the need for efficient, fast settlement by full adherence to the International Securities Numbering process (ISO 6166) and uniform usage of ISO 15022 based standards for all securities messages. The industry should seek to introduce a global client and counterpart identification methodology (BIC - ISO 9362) to further facilitate straight through processing. Applications and programmes should be structured in such a way as to facilitate open inter-action between all parties.

1.	Does the market use ISIN as the primary securities identification code?	Takasbank is the National Numbering Agency of Turkey responsible for allocating ISIN numbers for all securities and other financial instruments issued in Turkey (Equities, Debt Instruments, Mutual Funds, Stock Exchange Indices, and Turkish Lira). However, currently, ISIN is used as the primary identifier only for the Government debt securities by the market in Turkey. ISINs for equities are used by the market, especially for the foreign investors' transactions.
2.	Are the major participants in the market linked electronically?	Yes. All participants are linked to Takasbank proprietary system electronically. Banks (including Takasbank) are also linked to the Turkish Lira clearing system of the Central Bank of Turkey - EFT System and to the Electronic Securities Transfer System - ESTS (for government debt) both of which are RTGS systems. Brokerage houses are linked to EFT and ESTS through Takasbank Electronic Transfer System (TETS). All banks (including Takasbank) and some major brokerage houses are SWIFT members.
3.	Does the depository communicate using true (i.e. not bilaterally agreed on sub-standards) ISO standards for securities messaging?	No. Takasbank proprietary system, TETS, and the RTGS systems of the Central Bank are not based on ISO standards (ISO 15022) for securities messaging.
4.	Does the market operate standard identification codes for counterparties or client accounts and, if so, how do (or could) these fit into a single global identification methodology?	Yes. Standard counterparty identification codes are the codes of the participants produced by Takasbank within its system. However, they do not comply with ISO 9362.