Turkish Central Securities Depository, Clearstream to open direct access to Turkish capital markets

The Turkish Central Securities Depository and Trade Repository (CSD) and the international central securities depository Clearstream Banking 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 the Republic of Türkiye (CBRT), via an omnibus account structure, the CSD stated on Wednesday.

Clearstream’s local partner, TEB Securities Services, will act as account operator, it noted, adding that the operations will be active on September 29.

With the move, 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, the CSD stated.

"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," it added.

Jan Willems, head of global markets at Clearstream, said: “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.”

Ekrem Arikan, CEO and board member of CSD, also said: “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 at TEB, BNP Paribas’ Securities Services business in Türkiye, added that TEB and Clearstream have had a successful partnership for the past 13 years in Türkiye, and the two institutions build on this through this new offering together with CSD.