New regulatory era for repo and reverse repo transactions and cancellation condition

According to the new regulatory amendment prepared by the Capital Markets Board, in transactions without central clearing services in the Borsa İstanbul Repo and Reverse Repo Market, transactions will be deemed invalid and cancelled by Borsa İstanbul if securities are not reported on time or blocked.

New regulation published in the Official Gazette

The new regulation prepared by the Capital Markets Board has entered into force after being published in the Official Gazette. This amendment has initiated a new era in the main regulation governing the principles of stock exchange activities.

The relevant regulatory amendment was implemented with a new paragraph added to Article 33 of the Borsa İstanbul A.Ş. Principles Regarding Stock Exchange Activities Regulation. Thus, new rules have been clarified for transactions in the repo and reverse repo market.

Transactions without central clearing service

The regulation particularly covers transactions without central clearing service in the Borsa İstanbul Repo and Reverse Repo Market. New procedures and principles that market participants must comply with have been determined for transactions within this scope.

Time limit and blocking obligation introduced

According to the new provision, in repo transactions without central clearing services, it has become mandatory to report the securities by the time determined by Takasbank. In addition, it was stipulated that the securities must be blocked in the relevant account on behalf of the fund.

How the cancellation process will work

In the event that the required notification is not made within the specified time or the securities are not blocked in the relevant account, the transactions will be deemed invalid. These transactions will be cancelled by Borsa İstanbul upon the notification of Takasbank.