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Client Alert

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Begüm Durukan Ozaydin, LL.M.

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Trade Repository System
Operational in Turkey: e-Vedo

30.11.2018
 

Background

The launch of the e-VEDO: Elektronik Veri Deposu (electronic data repository) project is another reform for Turkish financial markets and conforms to international rules applied to maintain transparency in derivative transactions and reduce systematic risk for financial stability. Within the scope of Capital Market Board’s (CMB) authority to request information from parties regarding capital markets transactions for the purpose of monitoring systemic risk and maintaining financial stability, on 3 April 2015, Central Registration Agency (CRA) was authorized by the CMB as a trade repository.  Continuous reporting obligations for both exchange-traded and OTC derivatives, which were postponed multiple times before, finally start on 30 November 2018.

 

Reporting Requirements

 

Reporting covers information on transaction parties, collateral, valuation and contract details regarding derivative transactions.  Leveraged transactions are left out of the scope and will continue to be reported to Clearing, Settlement and Custody Bank (Takasbank) instead of the CRA.

 

Testing use of the system by investment institutions for all transaction was initiated on 7 November to continue until 24 November. The reporting of OTC derivative transactions has been set as the first step of the e-VEDO project.

 

Investment institutions who act as parties or intermediaries in derivative transactions must notify their transactions made on 30 November 2018 until 4 December 2018 to e-VEDO platform. Contracts which are not concluded until 30 November 2018 and contracts signed after 1 January 2018 and concluded or terminated by 30 November 2018 must be notified to the e-VEDO platform until 1 January 2019.

 

In connection with derivative transactions carried out by legal entities resident in Turkey (who are not investment institutions) between themselves, and or those conducted abroad in organized exchanges or OTC without using an investment institution authorized by the CMB, reporting obligation will start 1 January 2019. Besides, contracts which are not concluded until 1 January 2019 and contracts signed after 1 January 2018 and concluded or terminated by 1 January 2019 must be notified to the e-VEDO platform until 31 January 2019.

 

Membership with e-VEDO

 

Investment institutions parties and/or intermediaries to the derivative transactions must become members to e-VEDO platform until 26 November 2018, and other legal entities must become members to the platform until the day when their reporting obligation begins. The qualifications required of the applicants are follows:

  • Having the equipment and security system (as determined by CRA) to perform reporting activities

  • Employing necessary number of personnel with the qualifications to monitor and perform reporting actions

  • Paying the membership entrance fee

  • Obtaining Legal Entity Identification Code